DonaldCompanies planning to acquire Trump's new social media business said they could interfere with or prevent the acquisition ofTruth Social. Also disclosed the investigation of the federal grand jury.App.
Digital World Acquisition Corp. shares fell 10% in trading Monday morning after revealing that they had received a subpoena from a New York grand jury.
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Substantial acquisition of Trump's company early last year before Digital World first went public in September, according to an ongoing investigation by the Justice Department's Summoning Securities Trading Commission. Have a discussion and find out if the Digital World has broken the rules. Will buy Trump's company.
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Trump's social media venture, launched in February, has attracted supporters and the limits of Big Tech's speech. We are looking for a new digital stage to fight against. After he was banished from Twitter, Facebook and YouTube.
Trump Media & Technology Group, which operates the Truth Social app and is in the process of being acquired by Digital World, said in a statement, "We will cooperate in monitoring to support the important mission of the SEC." Said. It's about protecting individual investors.
New research can make it more difficult for Trump to fund social media companies. Last year, the company received promises from dozens of investors to invest $ 1 billion in the company, but it won't be able to get cash until the acquisition of Digital World is complete.
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Digital World shares price over $ 100 in October after the announcement of an agreement to acquire Trump's company Soared to. In the trading on Monday morning, the stock price was trading at about $ 25.
Digital World is a special purpose acquisition company (SPAC) that is part of a surge in popularity over the last two years.
Such a "blank check" company only provides investment and investors with a promise to buy a business in the future. As such, we are allowed to sell shares quickly to the public without the usual regulatory disclosures or delays, but only if we do not yet have a potential acquisition target.
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Digital World is a Monday regulatory submission, summoned by a grand jury in the Southern District by each member of the board. Said it was done. New York. Both the grand jury and the SEC are seeking a number of documents related to the company and other companies, including sponsors, ARC Global Investments, and Miami-based venture capital firm Rocket One Capital.
According to the SEC's disclosure, some of the required documents include "due diligence" regarding Trump Media and other potential acquisition targets, as well as Digital World underwriters and IPO underwriters. Includes communication with financial advisors.
Digital World also announced on Monday the resignation of Bruce Garelick, Chief Strategy Officer of Rocket One, one of the board members.
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