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SEC approves Truth Social, Digital World merger

The Securities and Exchange Commission (SEC) has approved a merger between former President Trump’s media startup and a blank check company seeking to take his platform, Truth Social, public.

Digital World Acquisition Corporation (DWAC) announced Wednesday that its registration statement for its merger with Trump Media & Technology Group (TMTG) has been declared effective.

The company will announce the date of the shareholder meeting to vote on the merger within two days, the press release added.

“This achievement marks an important milestone for our company,” DWAC CEO Eric Swider said in a statement. “We would like to express our sincere gratitude to all our shareholders for their continued support.”

Former Rep. Devin Nunes (R-Calif.), who currently heads TMTG, also celebrated Wednesday’s approval.

“Truth Social was founded to serve as a safe haven for freedom of expression and reclaim the voice of the people,” he said in a statement. “Going forward, we aim to accelerate efforts to build free speech highways outside of Big Tech’s stifling stranglehold.”

DWAC’s merger with Truth Social’s parent company has faced multiple setbacks since negotiations first began in October 2021.

The former DWAC board member and two others were indicted on insider trading charges last June for allegedly making $22 million by buying stock in the blank check company before the merger was announced.

The company also received an 1800 from the SEC last July for allegedly misleading investors and agents by failing to disclose that DWAC’s future CEO and chairman of the board had been in discussions with TMTG prior to listing. He was fined $10,000.

In September, DWAC received a second one-year extension from shareholders, days before the deadline to finalize the merger. Without the extension, the company would have had to liquidate the $300 million it raised and return it to shareholders.

Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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