Donald’s Trump’s Truth Social got a lifeline this week after a blank-check company that could infuse the social media platform with cash agreed to extend a critical deadline for a year.
. In November 2021, the Securities and Exchange Commission requested documents from Digital World following news reports that it had talked with Trump representatives about joining forces before selling its own stock to the public for the first time, a possible violation of security rules.
In July the SEC announced that it reached a settlement with Digital World on fraud charges. The SEC said it found that Digital World misled investors and the Commission by failing to disclose that it had formulated a plan to acquire and was pursuing the acquisition of TMTG prior to Digital World’s initial public offering. Digital World agreed to a cease and desist order and to pay an $18 million penalty if it completes the merger.in a federal criminal probe.
A SPAC has no product or service to sell and is set up solely to merge or acquire another business. They are used to speed a company’s entry into the public market, but have come under increased scrutiny because they lack the transparency of a traditional initial public offering of shares.The Associated Press is an independent global news organization dedicated to factual reporting.
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