NEW YORK – Shares of a company planning to buy Donald Trump’s new social media business plunged on Monday on a report that two key staff members have left and a regulatory filing indicating it will miss a key deadline for file its annual financial statements.
Digital World Acquisition Corp. fell more than 10% in midday trading on a Reuters report that Josh Adams and Billy Boozer – the company’s chief technology and product development officers – had left the company, citing two unnamed sources .
The company’s CEO is former Congressman Devin Nunes of Tulare, California. Nunes resigned from his House seat earlier this year to lead Trump’s new company.
The report follows a filing by the company last week saying its accountants needed more time to review financial figures before filing its annual report.
Interruptions, long waiting lists for Truth Social
Many public companies are asking for filing extensions, but the news has added to investor jitters fueled by the botched February launch of Trump’s Truth Social app, which has been marred by outages and long waiting lists for to access.
The stock fell to $56.50, down more than a third over the past month.
The Truth Social app topped Apple’s App Store free ranking the day it was made available to a limited number of subscribers in February. Since then, it has dropped off the charts and is no longer in the top 200.
Digital World is considering buying Trump’s new social media company, Trump Media and Technology Group. Digital World needs regulators to sign off on its merger deal with Trump Media to access the more than $1 billion the former US president helped fund the company.
Regulators are investigating Digital World following reports it may have breached security rules last year.