SEC and FINRA regulatory agencies have launched an investigation on the planned merger of asocial media company backed by former President Donald J. Trump and a special purpose acquisition company (SPAC) that raised nearly $300 million in an initial public offering last September.
The FINRA and SEC investigations were disclosed after the 8-K filing with the SEC by Digital World Acquisition Corp. (DWAC), the SPAC that will merge with Trump Media & Technology Group.
According to DWAC’s 8-K filing, FINRA inquired about stock trading “that preceded the public announcement of the October 20, 2021 Merger Agreement” with Trump’s company.
SEC also sent DWAC a voluntary information and document request for minutes of board meetings, policies about stock trading, the identities of certain investors and communication logs between DWAC and Trump’s social media firm.
“The investigation does not mean that the S.E.C. has concluded that anyone violated the law or that the S.E.C. has a negative opinion of D.W.A.C. or any person, event, or security,” said DWAC.
DWAC also said that they are already cooperating with both FINRA and SEC.
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