Investment firm says still on track to merge with Trump’s social media company despite SEC probe

New subpoena earlier this week hasn’t changed Digital World Acquisition Corp.’s plans to merge with Trump Media and technology Group.

By John Solomon

Published: June 15, 2022 11:09am

Updated: June 15, 2022 1:57pm

The special purpose acquisition company that raised over $1 billion from investors to support former President Donald Trump’s foray into social media says it remains on track to merge with Trump Media & Technology Group despite getting a second Securities and Exchange Commission subpoena in a probe inspired by Democrats.

Digital World Acquisition Corp. said it appreciates that the SEC is "tasked with protecting investors" and that the SPAC "is working to provide the SEC staff with information, pursuant to previously disclosed subpoena requests, so that the SEC has what it needs to conduct and conclude its investigation."

The company also said; "The Digital World team continues to diligently work towards completing the Business Combination, which includes approximately $1.25 billion of net proceeds to TMTG at close, assuming no redemptions by Digital World stockholders, in order for investors to have the opportunity to participate in the Business Combination."]

TMTG earlier this year launched the Truth Social platform, which has attracted millions of users on Apple’s iOS platform and is now expanding to Android and Web-based apps.

The SPAC, also earlier this year, announced plans to merge with TMTG, giving it a vast treasury of money to expand into video and entertainment venues.

Digital World, which has seen it stock value declined since disclosure of the SEC probe earlier this year, disclosed in a filing Monday that it has received a second subpoena in an investigation requested by Democrat Sen. Elizabeth Warren, of Massachusetts. It said the subpoena sought additional information on "communications regarding and due diligence of potential targets other than TMTG" and the relationship between the SPAC and certain advisers.

The SPAC said it has "been tirelessly working toward consummating its proposed business combination" with TMTGand the deal with “afford Digital World stockholders, both large and small, the opportunity to participate” in merger.