Blank-check firm Digital World shares slide after Donald Trump returns to X

Investing.com -- Shares in Digital World Acquisition Corp (NASDAQ:DWAC), the blank-check company that has agreed to merge with Donald Trump's media business, dipped in early trading Friday after the former U.S. president returned to short-text platform X.

In his first post on the website formerly known as Twitter in more than two-and-a-half years, Trump included a mug shot from his booking on Thursday at a jail in Georgia. Trump currently faces 13 criminal charges in the state over his attempts to subvert the outcome of the 2020 presidential election.

The 77-year-old, who is now the clear frontrunner for the Republican nomination in next year's election, had previously said that he would only post on his Truth Social platform following his ban from Twitter in the wake of the January 6, 2021 assault on the U.S. Capitol by his supporters. Billionaire Elon Musk later lifted the ban following his purchase of Twitter, although Trump stated that he remained uninterested in posting any more content on the website.

Special purpose acquisition company Digital World said in 2021 that it would combine with Trump Media&Technology Group (TMTG), the developer of the Truth Social app. However, the deadline for the deal has been pushed back repeatedly due in part to regulatory scrutiny, with the latest being a decision to delay the merger by more than three months to the end of December.

Digital World also received an expected letter from Nasdaq this week informing the group that it was not complying with one of the exchange's listing rules because it had not yet filed its quarterly report for the period ended on June 30 with the U.S. Securities and Exchange Commission.

The company said in a statement that it would "work diligently" to finalize and submit its late results "as soon as possible."