Digital World (NASDAQ: DWAC), a SPAC that is slated to undergo a reverse merger with the entity behind the Truth Social platform, Trump Media and Technology Group (TMTG), has a distinct propensity for getting stuck in preventable troubles. From scrambling to support the retail vote for an essential proposition a few months back, the SPAC is now being punished for failing to file its quarterly report.
To wit, Nasdaq’s Listing Qualification Department has actually sent out a letter to Digital World, reprimanding the SPAC for stopping working to submit the requisite Form 10-Q for the quarter that ended on the 30th of June.
Bear in mind that Digital World got a similar reprimand for failing to send the requisite filings for the quarter that ended on the 31st of March. After having actually submitted a strategy to restore compliance with Nasdaq’s requirements, Digital World got a reprieve up until the 20th of November to file the Form 10-Q for it’s very first financial quarter of 2023.
Now that Digital World has actually fallen under an extra delinquency, any leniency shown by Nasdaq “will be limited to an optimum of 180 calendar days from the due date of the First Quarter 10-Q, or November 20, 2023.” This implies that the SPAC will need to send the requisite filings for the 2 successive quarters within a number of weeks, eventually depending on the magnitude of leniency granted.
Digital World means to send a strategy in early September to gain back compliance with the most recent breach of Nasdaq guidelines.
Obviously, Digital World only just recently reached settlement with the SEC for deceptive financiers by stopping working to disclose a variety of merger-related initial conversations with TMTG along with other investors in the spring and summertime of 2021.
so … brief DWAC?
— zerohedge (@zerohedge) August 25, 2023
Against this background, it is hardly a surprise that some investors are getting disillusioned. Consider the reality that even the conservative-leaning publication ZeroHedge selected to take a dig at Digital World’s relentless litany of travails, as displayed in the tweet above.