Digital World Acquisition, the SPAC with a pending deal to acquire former President Trump’s media and tech company, said in an 8-K that it has reached a tentative settlement with the SEC. Terms call for Digital World to pay a civil fine of $18 million.
While the 8-K was short on specifics, the SPAC has been under federal investigation for alleged merger talks with Trump Media and Technology Group prior to Digital World’s IPO. Such discussions would be illegal.
The filing notes that Trump’s company is not a party to the settlement.
Digital World also disclosed that Trump’s company disagrees with the SPAC’s interpretatiuon of its liquidation deadline. Shareholders last year approved an extension to Sept. 8. The SPAC contends that under the extension provision is has the right to push the deadline back up to 12 more monmths to September 2024.
Digital World said in the filing it “expects to work with TMTG in good faith to address this disagreement in a manner that is in the best interest of its shareholders.”
The U.S. Justice Department and the SEC last week filed separate charges against three individuals over insider trading related to the merger. Read more.
