Digital World Acquisition in an 8-K filing today disclosed that it received notice Feb. 22 from the Nasdaq stating that the SPAC has not paid certain fees required by Listing Rule 5250(f) and that it will be delisted unless it appeals this determination. Digital World in the filing said it will appeal, pay the corresponding fee, and plans to pay any fees The Hearing Department determines are due.
The SPAC has a merger agreement in place with Trump Media & Technology Group, which principally operates the former president’s Truth Social platform. The deal has been beset by drama almost from the day it was announced nearly a year and a half ago:
Digital World struggled last fall to secure sufficient shareholder votes for a deadline extension (now effective until September) while the SEC subpoenaed executives at the SPAC and Trump Media as part of a federal investigation into allegations of behind-the-scenes dealings. A former insider to the SPAC sued Digital World and at least three key executives quit the company, including two board members. Trump Media has been accused of not paying its vendor bills, Digital World reportedly had not paid its proxy solicitor Saratoga Proxy Consulting, and Elon Musk’s takeover of Twitter — Truth Social’s main competitor — sent Digital World shares on a rollercoaster ride after Musk opened the door to allowing Trump back on the platform after he was banned two years ago. Read more.
