Digital World Acquisition stock soars, as the SPAC taking Donald Trump’s Truth Social public settles fraud charges

Shares of Digital World Acquisition Corp.
DWAC,
+50.30%,
the special purpose acquisition company (SPAC) looking to take Donald Trump’s Truth Social media company public, soared 20% in premarket trading Friday, after the SPAC reached a settlement with the Securities and Exchange Commission over fraud charges. The rally put the stock on track to open around the highest-price seen during regular-session hours since Feb. 6. The agreed upon settlement was a $18 million civil penalty fee in the event that it completes its planned  merger with the Trump Media and Technology Group (TMTG) and takes it public. The SPAC, which went public in September 2021, and entered into an agreement in October 2021 to buy TMTG. The SPAC’s stock has tumbled 59% over the past 12 months, while the S&P 500
SPX,
+0.03%
has gained 13.4%.