Former President Donald Trump's company says it will cooperate with an investigation into a special acquisition company planning to merge with Trump's social media platform. File Photo by Joe Marino/UPI | License Photo
June 27 (UPI) -- An acquisition company planning to merge with former President Donald Trump's social media platform said Monday each of its board members have been subpoenaed by a federal grand jury.
The subpoenas, issued to board members of Digital World Acquisition by a New York grand jury on June 16, were disclosed Monday in a Securities and Exchange Commission filing.
Digital World is a special-purpose acquisition company, or SPAC, that announced its merger with Trump Media & Technology Group in October.
SPACs are "blank check" companies that raise capital through an initial public offering for a merger. However, they are barred from raising money for a specific acquisition target.
The subpoenas seek documents about events that took place before the public announcement related to Digital World's S-1 filings, as well as information regarding the investment firm Rocket One Capital.
Rocket One Chief Strategy Officer Bruce Garelick resigned from the the SPAC's board Wednesday. The company said Garelick's resignation "was not the result of any disagreement with Digital World's operations, policies or practices."
Trump launched TMTG and social media app TRUTH Social after leaving office to attract right-wing users and to compete against so-called liberal media and Silicon Valley.
The tech company's merger with Digital World has faced scrutiny since it was announced, and Monday's SEC filing could delay the merger's completion. Trump Media & Technology Group said it plans to cooperate with the investigation.
"TMTG is focused on reclaiming the American people's right to free expression. Every day, our team works tirelessly to sustain TRUTH Social's rapid growth, onboard new users, and add new features," Trump Media said Monday. "We encourage -- and will cooperate with -- oversight that supports the SEC's important mission of protecting retail investors."