Overview

• Digital World Acquisition Corp. made undisclosed accounting errors that led regulators to warn investors the company's financials "should no longer be relied upon."
• The SPAC risks being delisted from Nasdaq for failing to file mandatory reports on schedule.
• The SEC's action indicates poor financial controls and oversight at the company, which aims to take Trump's Truth Social public.
• Digital World must submit a remediation plan to address the issues and avoid delisting, even as the merger and SEC probes remain unresolved.
• Without the merger, Trump's Truth Social would need new funding to continue as a competitor to Twitter.