Digital World stock tumbles after SPAC buying Trump Media discloses another SEC subpoena

Shares of Digital World Acquisition Corp. DWAC, -9.89% tumbled 8.2% in premarket trading Monday, after the special purpose acquisition company (SPAC) that is buying the company behind Donald Trump’s Truth Social said it received another subpoena from the Securities and Exchange Commission related to the acquisition. The SPAC said the subpoena seeks additional information on “communications regarding and due diligence of of potential targets other than TMTG” [Trump Media & Technology Group Corp.] and relationships between Digital World and certain advisors, shareholders, as well as certain forward-looking information about TMTG. The company said order of the examination of the registration statement “could materially delay, materially impede or prevent the consummation of the business combination.” Digital World are previously disclosed in May a subpoena from the SEC seeking documents and information regarding several things, including meetings of the board of directors, the evaluation of potential acquisition targets including TMTG, communications relating to TMTG and payments made to certain advisors. The stock has plunged 38.6% over the past three months through Friday, while the S&P 500 SPX, -3.29% has declined 7.2%.

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