Shell (LON:RDSa) company Digital World Acquisition (DWAC) this month agreed to merge with former President Donald Trump’s Trump Media & Technology Group Corp. However, the SEC and other regulators are now investigating the proposed merger for potential securities fraud. Given this backdrop, should one bet on DWAC? Read more to find out.Digital World Acquisition Corp. (DWAC) is a Miami, Fla.-based blank check company that went public through an initial public offering on September 2, 2021. The company was created to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses.
DWAC priced each of its units at $10, raising $250 million in gross proceeds through the offering. Each unit consists of one class A common stock and half of a redeemable warrant. DWAC plans to merge with middle-market and emerging growth technology-focused companies in the Americas that do business in Software-as-a-Service (SaaS) and Technology or Fintech and Financial Services.
DWAC stated in its prospectus that it would allow shareholders to redeem all or a portion of their holdings upon the completion of its business combination. Shares of DWAC have gained 423.1% in price since its stock market debut to close yesterday’s trading session at $52.05.