Ex-US President US Securities and Exchange Commission tackles Trump-SPAC

Ex-US President US Securities and Exchange Commission tackles Trump-SPAC

Ex-US President US Securities and Exchange Commission tackles Trump-SPAC

Former US President Donald Trump has targeted the SEC with his new online project. The authority is scrutinizing the company through which Trump wants to bring his social network “TRUTH Social” to the stock exchange.

The company called Digital World Acquisition (DWAC) announced on Monday that it had received a request for information from the SEC. Among other things, she asked for information about communication with Trump’s company and looked at the trading in shares of DWAC before its announcement to work with the Trump Media & Technology Group (TMTG).

TMTG is to be brought to the US technology exchange Nasdaq through the back door via the merger with Digital World Acquisition. The former Deutsche Bank investment banker Patrick Orlando is behind DWAC. DWAC has raised $ 293 million to be made available to Trump’s new network. DWAC shares were valued at ten dollars in the original deal with Trump Media in October. On Monday they were trading at $ 42.60.

Trump’s competitor is scheduled to start in the first quarter of 2022. The so-called SPAC (Special Purpose Acquisition Companies), through which the IPO is to be made possible, are not without risk.

Investors in the empty shell – in this case DWAC – usually do not know in advance which company the company is merging with. A SPAC initiated by the banker Orlando in China recently failed because investors jumped off again.

US President Joe Biden was there to erase the curse of the Trump era. But after a year in office it is becoming increasingly clear that the Democrat is continuing in almost exactly the same way in US trade policy.