Digital World Acquisition extends 6-day decline to 30% after TFG's Truth Social threatens a lawsuit

[LetMyPeopleVote]

Digital World Acquisition is special purpose acquisition company that is supposed to merge with TFG's new media company that owns and operates Truth Social. TFG would have ended up with a media company that had between $280 million and $1.3 billion in assets. The SEC and the DOJ are both investigating this scam and DWAC had a deadline to vote to extend the merger that required the vote of 65% of DWAC stockholders to extend. The latest is that Devin Nunes and TFG want to sue the Securities and Exchange Commission.

This makes me smile. It would be very amusing to see TFG and Devin Nunes sue the SEC

Link to tweet

https://markets.businessinsider.com/news/stocks/digital-world-stock-price-truth-social-threatens-sec-lawsuit-spac-2022-9

Digital World Acquisition saw its stock price fall as much as 7% on Wednesday, extending its six-day decline to as much as 30% as the company struggles to close its proposed merger with Truth Social.

Since Digital World first announced its deal with Truth Social last year, the SPAC has plunged 90% from its record high of $175 per share. The most recent decline has been compounded by Digital World's inability to close the merger with Truth Social before its deadline.

But Truth Social believes the SEC is to blame for the delayed deal with the SPAC, according to a Wednesday regulatory filing.

"The SEC has stalled its review of our planned merger with DWAC, having failed to act despite DWAC having filed its registration statement more than four months ago. This inexcusable obstruction, which directly contradicts the SEC's stated mission, is damaging investors and many others who are simply following the rules and trying to expand a successful business," Truth Social said.

"In light of the obvious conflicts of interest among SEC officials and clear indications of political bias, TMTG is now exploring legal action against the SEC. Despite the increasing weaponization and politicization of government agencies, Truth Social will continue its expansion plans, supported by the unprecedented levels of user engagement on the platform," the company added.

One factor holding up the deal not mentioned in Truth Social's statement is the fact that Digital World has been unable to attract the 65% of shareholders needed to approve the business combination. An initial shareholder vote failed to pass earlier this month, and the vote has since been delayed to mid-October in an attempt to garner more votes.

With continued uncertainty that Digital World will be able to receive the necessary amount of votes by mid-October, the SPAC's sponsor deposited about $3 million to extend the potential deal deadline to December 8.

[SheltieLover]

1. They want to sue SEC?

Their lawyers going to call the Easter Bunny for a dot-to-dot "how to" book?

[C_U_L8R]

2. I'm not saying it's multi-dimensional chess

But boy, Trump is being eviscerated with great skill.

[LetMyPeopleVote]

3. Stock For 'Truth Social' Parent Company Plummets 30% In 6 Days

This makes me smile. TFG is crying because Truth Social is not paying its bills and this will be another business failure

Link to tweet

https://bipartisanreport.com/2022/09/21/stock-for-truth-social-parent-company-plummets-30-in-6-days/

Donald Trump has failed at many businesses. Trump Steaks, Trump Water, and Trump Vodka were all flops. Even some of the casinos Trump built, businesses designed to make the owners big profits, ended in bankruptcy. He’s also facing multiple lawsuits against his business, the Trump Organization, including one by NY AG Letitia James.

Yet Trump and his social media company are blaming political bias for investors’ reluctance to go into business with him.

Digital World Acquisition, a blank check company designed to effect mergers, once had a stock valuation of as high as $175 per share. Today, after months of trying to negotiate a merger with Truth Social, that stock has fallen as much as 90 percent, 30 of which has happened just in the past six days.

Digital World Acquisition is having a difficult time convincing the 65 percent of shareholders it needs to complete a merger with Truth Social. In fact, they paid around three million dollars to extend a deadline to convince those shareholders to December 8, but have not announced any progress.

[Midnight Writer]

4. The King of Delay is now outraged at...a delay.

[maxsolomon]

5. Are there investors who decided to take a bath to thwart *?

they can't get >65% of their shareholders to agree to the deal the SPAC was formed to make?

wondering if >35% bought shares out of spite?

[WarGamer]

6. the whole market's been down.

[Mr.Bill]

8. Yeah, but not 30%. n/t

[WarGamer]

9. It's still VASTLY overvalued.

A market cap of $670M and Trump personally holding over 50% of the shares... if the merger ever goes thru

For something of truly dubious value.

[Mr.Bill]

10. I agree.

Much of the stock market is vastly over-valued.

[lapfog_1]

7. I hear Elon isn't going to buy twitter now

maybe he can spring some loose change for NoTruth Anti-Social.