In SPAC news this week, shares of Digital World Acquisition were under pressure this week as Truth Social, the social media platform owned by Trump Media that launched in late February, reportedly has seen its downloads drop by 95% since last month.

Trump SPAC Slides as Downloads Sink 

Digital World Acquisition (DWAC), the special purpose acquisition company that is merging with Trump Media & Technology Group, fell in Thursday afternoon trading after Bloomberg reported that Truth Social, the social media platform owned by Trump Media that launched in late February, has seen its downloads drop by 95% since last month, citing data from Apptopia.

Downloads declined to 8,000 per day from an initial 170,000, while the number of daily-active users on Apple devices over the past week was around 513,000, Apptopia data show, noted Bloomberg.

SEC Legal Threat

SPAC sponsors who embellish projections about the companies they plan to take public face a new threat in a plan from the U.S. Securities and Exchange Commission, Bloomberg's Benjamin Bain and Gillian Tan reported.

Wall Street’s main regulator will propose curbing the legal protections that some blank-check companies have relied on to make bullish forward-looking statements about the firms they plan to merge with, according to people familiar with the matter. The regulation, set to be released as part of a broader set of SPAC rules, would clarify that investors can sue over inaccurate special purpose acquisition company forecasts, the authors noted.

SPAC IPOs This Week

• Redwoods Acquisition (RWOD) opened on March 31 at $10.05. The company plans to target the carbon neutral and energy storage sectors, focusing on opportunities with enterprise values of approximately $250 million to $1 billion, and will not target opportunities in China.
• Metal Sky Star Acquisition (MSSA) opened on April 1 at $10.02.