Digital World Acquisition and merger partner Trump Media & Technology Group announced that the SEC declared effective the registration statement for the companies’ proposed business combination.
Digital World said within two business days it expects to announce the date of the shareholders meeting to vote on the deal. Shares in the SPAC jumped 15% this morning on the news.
“We are immensely proud of the strides we’ve taken towards advancing the Business Combination,” declared Eric Swider, CEO of Digital World. “This achievement marks a significant milestone for us. Our sincere thanks go to our shareholders for their unwavering support.”
The announcement follows news of internal strife at the SPAC that could still derail the deal, as well as a dispute between Trump Media and an investment group seeking to recoup $1 million it says it is owed.
A merger agreement between the parties was announced in October 2021. Since then, Digital World has been investigated and fined $18 million by the SEC for discussing a deal with Trump’s company before the SPAC’s IPO. The fine would only be paid if the merger closes. Digital World’s original CEO and founder was fired nearly a year ago. Some of the original investors in a $1 billion PIPE pulled out once the deal began to drag on. Digital World cancelled the remaining PIPE subscriptions last year, heralding the move as a positive development.
In addition, several Digital World investors have been indicted for insider trading, while over at Trump Media some vendors have complained about unpaid bills and the social media company continues to bleed cash. Read more.
