According to an SEC filing on Monday morning, reported by Axios, a federal review of the planned merger between Digital World Acquisition Corp (DWAC) and Donald Trump's "Truth Social" social media endeavor is being expanded with questions being raised.
The report, by Dan Primak of Axios, states the so-called "blank check" company has already drawn interest from federal regulators and a delay in the merger could have financial implications for both companies.
According to Primak, "The Securities and Exchange Commission is investigating communications between the blank check company, called Digital World Acquisition Corp., and Trump. Of particular interest would be if the two sides negotiated prior to DWAC going public, which would have been illegal."
DWAC has already admitted that they are being investigated and provided more guidance on Monday that the inquiry is being expanded.
Noting that regulators are seeking "additional documents and information," Primak reported, "This includes communications regarding DWAC's due diligence of companies other than Trump's, if it occurred, relationships between DWAC and other entities (including its IPO underwriter E.F. Hutton), certain forward-looking statements and certain elements of the transaction history for equity."
You can read more here.