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Company linked to Trump's social network under investigation

2021-12-06T18:47:22.133Z

The company, whose stock fell 2% this afternoon on Wall Street, recalled that the solicitations did not mean it had c



Could this be the beginning of the problems for Donald Trump's social network project?

Digital World Acquisition Corp (DWAC), a company raising funds on the stock exchange linked to the company to carry out the project, is the subject of investigations by US regulators.

DWAC explains in a stock market document released on Monday that it has received requests from the authority overseeing the markets, the SEC, and the self-regulatory agency of the financial sector, Finra.

The first of these two instances seeks details of DWAC board meetings, its brokerage-related procedures, the identities of certain investors, and dealings with Donald Trump's company.

La Finra, for its part, asked DWAC for information on the activity of its action before October 20.

Read alsofive minutes to understand why Donald Trump's social network is already soaring on the stock market

The company, already listed on Wall Street, announced at the end of October that it would merge with the company carrying the microblogging project of the former White House tenant, Trump Media & Technology Group (TMTG), thus allowing this last to arrive on Wall Street without the usual procedures.

DWAC is a special purpose acquisition company, or “Spac” in English.

This fashionable financial instrument is like an empty shell raising funds on the stock market by committing to get closer in the following months to an a priori promising company.

Already investors

In a joint statement, the two companies announced on Saturday that a group of institutional investors had pledged to contribute $ 1 billion to the operation.

They did not specify in the stock market document on Monday the identity of these investors.

As DWAC's stock slipped 2% around 4 p.m. GMT on Wall Street, the company said the solicitations did not mean it had committed wrongdoing.

Entitled "Social Truth", Donald Trump's future platform was presented by the former president as an alternative to Facebook, Twitter and YouTube from which he is banned for having incited his supporters to violence before the assault on Capitol Hill, the January 6.

Currently available for pre-order on the App Store, it should theoretically be launched in the first quarter of 2022.

Source: leparis

All business articles on 2021-12-06

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