In recent days, investors who had planned to invest $191.5 million in shares of Donald Trump’s special-purpose acquisition company (SPAC), Digital World Acquisition Corp. (DWAC), cancelled their investments. Many investors have cancelled their stakes, amounting to more than half of the total. The SPAC has long pursued a merger with Trump’s media venture, Truth Social. Separately, both organizations issued comments praising the decision to cancel.
Investors who had previously indicated they would purchase shares in DWAC have cancelled such purchases to the tune of $191.5 million, according to a filing with the Securities and Exchange Commission (SEC) on Thursday. Investors that had shown interest cancelled their commitments totaling $533 million. Since the initial investment was $1 billion, this represents more than 50% of the withdrawal.
On Thursday, the company also said that its 2022 unaudited quarterly financial statements “should also no longer be relied on” as there was “material weakness” in internal accounting practices. In May, the company released a similar announcement for its last year’s audited quarterly reports. Shares traded flat but have seen an 80 percent decline since last March.
In a statement issued by Digital World Acquisition Corp., CEO Eric Swider referred to the cancellations as “a positive development” in the company’s “ability to consummate the business combination.” According to the CEO of DWAC, the company’s shareholders needed to know how the business viewed “the PIPE commitment cancellations” and other matters.
Trump Media CEO Devin Nunes issued a comment as well. The statement claimed the abandoned obligations were “an important step” that would be in the “best interest” of shareholders and others.
Private investment in public equity (PIPE) stakes held by DWAC and Trump Media have been cancelled, as per a joint statement released by the two companies.
CWEB News has previously reported that there have been many obstacles to the merging of DWAC and Trump Media.
A September filing indicates that the merger between DWAC and Trump Media can be terminated between October 31 and November 21.
Celebrity WEB Update— Premier Jewelry designer and manufacturer fashion house ParisJewelry.com has started manufacturing a new custom line of celebrity jewelry designs with 30% Off and Free Shipping. Replenish Your Body- Refilter Your Health with OrganicGreek.com Vitamin Bottles, Vitamins and Herbs. Become a WebFans Creator and Influencer.