Shares of Digital World Acquisition (NASDAQ:DWAC) are only down about 2% on Thursday. At the session low though, DWAC stock was down 4.5% and hitting new 52-week lows.
That occurred when shares hit $14.10 shortly before 1:00 p.m. Eastern.
It’s been a painful run for DWAC stock, which is now down more than 90% from its peak. That said, shares are currently down less than 5% so far in 2023.
At the center of the stock’s decline on Thursday are reports about a potential delisting. That comes after the company said it would appeal the Nasdaq’s delisting notice, which occurred after DWAC missed its payments on some dues.
Ultimately, it should be a non-issue, as Digital World Acquisition has stated: “The company has elected to file an appeal of this matter, pay the corresponding fee, and plans to pay any fees the Hearing Department determines are due.”
What to Make of DWAC Stock Now
Many investors know DWAC stock as the special purpose acquisition company (SPAC) backed by former President Donald Trump. After a lot of noise and fanfare, the momentum surrounding this name has died down considerably over recent quarters and months.
The company is supposed to merge with Trump’s social media business. That business — Trump Media & Technology Group — has the social media platform, Truth Social.
Now, the company wants to know what’s taking so long for the U.S. Securities and Exchange Commission (SEC) to review the deal. In fact, it has even pushed Congress to investigate the hold up.
Meanwhile, DWAC recently extended the date to get the deal complete, moving it from March to June.
I’m not an SEC specialist or a lawyer, but it’s clear that this deal is taking far longer than normal to go through. At the same time, DWAC is receiving delisting notices from the Nasdaq, so it may not have all of its ducks in a row either.
Investors are also concerned about Trump being unbanned from Twitter and Meta’s (NASDAQ:META) Facebook. However, he hasn’t used those platforms yet.
While it appears clear that Trump will continue to use Truth Social in the short term, it’s not clear when or if the deal with DWAC will get done.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.