Why Trump-Related Digital World Acquisition Corp. Shares Are Soaring

Digital World Acquisition Corp. DWAC shares are trading higher Friday after the company announced it reached a settlement with the SEC.

The Details:

Digital World Acquisition Corp. (DWAC) announced it has settled with the SEC on fraud charges related to material misrepresentations made in forms filed during DWAC's initial public offering (IPO) and proposed merger with Trump Media & Technology Group Corp. (TMTG).

As part of the settlement, DWAC agreed to a cease-and-desist order and to pay an $18 million penalty if it closes a merger transaction. The company also committed to ensuring that any amended Form S-4 it files will be accurate and consistent with the SEC's findings.

Mr. Swider, CEO of DWAC, stated, "Through steadfast dedication to our shareholders, we tirelessly worked to reach a settlement with the SEC regarding charges against DWAC. This is an important milestone for us, as it clears the path for the SEC to review our expected upcoming filing of the Registration Statement related to our proposed merger with TMTG. Subject to further SEC review of our future filings related to the merger, we are eager to move forward the consummation of the business combination with TMTG and we look forward to TMTG's cooperation in this regard."

DWAC Price Action: According to Benzinga Pro, DWAC shares are trading 41.5% higher at $18.94 at the time of publication.

Image: sergeitokmakov from Pixabay

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