The stock of Digital World Acquisition Corp.
DWAC,
the blank-check company planning to take former President Trump’s media ventures public via a merger, rallied 12.6% Wednesday, after the company said it had reached a “settlement in principle” with the SEC’s enforcement division, after the agency launched an investigation into the proposed tie-up between the two companies. If the SEC approves the settlement, it would issue a cease-and-desist order finding that the company violated anti-fraud laws related to its IPO filings “concerning certain statements, agreements and omissions relating to the timing and discussions the Company had” about the proposed deal with Trump’s media company, Trump Media & Technology Group, which oversees the social platform Truth Social. If DWAC makes revisions to the IPO filings, it will pay an $18 million civil penalty once the deal closes. The stock has fallen 7% in the year to date, while the S&P 500
SPX,
has gained 16%.
