The companies, once merged, say they plan to launch the
social media platform Truth Social nationally early next year, hoping to rival
services like Twitter, which banned Trump over the January US Capitol riot.
Digital World Acquisition Corp (DWAC), which is partnering
with Trump, reported in a filing to US markets watchdog the Securities and
Exchange Commission that it received "preliminary, fact-finding inquiries
from regulatory authorities, with which it is cooperating."
Digital World, already listed on Wall Street, announced in
late October it would merge with Trump Media & Technology Group (TMTG),
allowing the ex-president's venture to be listed without the usual procedures.
In a joint statement, the two companies announced on
Saturday that a group of institutional investors had committed to contributing
$1 billion to the transaction.
They did not specify Monday in the regulatory document the
identity of these investors.
Digital World says the SEC is seeking details of its board
meetings, brokerage procedures, the identity of certain investors and dealings
with Trump's company.
The Financial Industry Regulation Authority, for its part,
requested information from DWAC about its stock activity prior to the official
announcement of the TMTG deal on October 20.
"The investigation does not mean that the SEC has
concluded that anyone violated the law or that the SEC has a negative opinion
of DWAC or any person, event, or security," Digital World's filing said.
Its stock was down three percent at around 1645 GMT (10:15pm
IST) on Wall Street.
Digital World is a special purpose acquisition company
(SPAC), sometimes called a "blank check" company because it is set up
with the sole purpose of merging with another entity.
Trump says the new platform will be an alternative to
Silicon Valley Internet companies that he says are biased against him and other
conservative voices.
The 75-year-old was thrown off Twitter — his preferred
communications conduit while president — as well as Facebook and YouTube after
the January 6 insurrection in which a mob of Trump supporters, riled up by his
repeated false claims the November 2020 election was stolen from him, assaulted
the US Capitol.
Currently available for pre-order on the App Store, it's
expected launch is set for the first quarter of 2022.
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