Digital World Acquisition reaches tentative settlement with SEC

In a regulatory filing, Digital World Acquisition Corp. said it has reached an agreement in principle with the Staff of the SEC’s Division of Enforcement. “The terms of this Settlement in Principle are not yet definitive, as a final settlement agreement is subject to the approval by the Commission, and the company cannot predict whether or when it may obtain the Commission’s approval. If the Commission approves the Settlement in Principle, it will enter a cease-and-desist order finding the Company violated certain antifraud provisions of the Securities Act and the Exchange Act, in connection with the Company’s IPO filings on Form S-1 and the Form S-4 concerning certain statements, agreements and omissions relating to the timing and discussions the Company had with TMTG regarding the proposed business combination. In connection with the Settlement in Principle, if the Company amends its previously filed Form S-4, it will ensure that any such Form S-4 will be materially complete and accurate and consistent with the findings in the Order and pay a civil money penalty in an amount of $18M to the SEC promptly after the closing of any merger or a comparable business combination or transaction, whether with TMTG or any other entity… The Company, its board of directors and its management team strongly believe the Settlement in Principle is in the best interests of DWAC‘s shareholders. Accordingly, the board of directors has authorized management to proceed forward with the Settlement in Principle.”