Wed. Jul 24th, 2024

TLDR: Digital World Acquisition Corp. (DWAC) has cleared a regulatory hurdle in its attempt to acquire Trump Media & Technology Group, the parent company of Truth Social. The special purpose acquisition company (SPAC) saw its stock rise by 24% after the announcement. However, DWAC also disclosed a potential snag with the deal involving a dispute with board member Patrick Orlando, who is seeking additional compensation. Orlando’s control over the SPAC and his ownership of founder shares and placement units could potentially hinder the completion of the merger. DWAC settled fraud charges with the Securities and Exchange Commission (SEC) in July 2023, and Orlando was terminated as chief executive of DWAC during the SEC’s investigation.