Digital World Acquisition (NASDAQ:DWAC) stock is on the move Friday after the SPAC reached a settlement on fraud charges from the SEC.
This settlement has to do with a few actions of Digital World Acquisition that the SEC took issue with. The company, which is planning to take former President Donald Trump’s Trump Media and Technology Group public, may have to pay $18 million as a result.
The settlement will only go into effect if the company completes its merger with Trump’s Truth Social parent company. If it doesn’t and returns money to investors, then it won’t have to pay that $18 million settlement.
The issues brought up by the SEC include insider trading of DWAC stock, negotiations with Trump Media and Technology Group before its initial public offering (IPO), as well as its former CEO failure to disclose interest in a separate deal with Trump’s company, reports CNBC.
What This Means For DWAC Stock
Digital World Acquisition hasn’t expressed any intent to back down from its deal with Trump Media and Technology Group. Instead, it looks like it will move forward with the SPAC merger, which has a deadline of Jan. 1, 2025.
Investors are also seeing heavy trading of DWAC stock following today’s SEC news. That has more than 415,000 shares of the stock changing hands, as compared to its daily average of around 304,000 shares.
DWAC stock is up 20.4% as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
