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Investing.com — Digital World Acquisition Corp (NASDAQ:DWAC), the special purpose acquisition company (SPAC) that is set to take Donald Trump’s social media company, TMTG, public, has tumbled Wednesday after Kerrisdale Capital said it was short the stock.
In a series of tweets, the investment firm said that it believes DWAC will “never secure regulatory approval to close its proposed merger with Trump Media & Tech Group.”
“The SEC is cracking down on SPACs and $DWAC is a poster child for some of the worst abuses the investment vehicle has spawned,” they added.
DWAC stock fell around 8% following the tweets. It currently trades 5.7% below Tuesday’s close and is down 10.8% in 2022.
“6 wks into Truth Social’s bungled launch, execs are already fleeing. 6 months after merger announcement & the S-4 process with SEC hasn’t even begun. The truth is becoming harder to deny: a deal already taking too long is likely headed for collapse,” concluded Kerrisdale.
