This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.

Digital World (NASDAQ: DWAC), a SPAC that is slated to undergo a reverse merger with the entity behind the Truth Social platform, Trump Media and Technology Group (TMTG), has a unique knack for getting mired in avoidable troubles. From scrambling to shore up the retail vote for a key proposal a few months back, the SPAC is now being penalized for failing to file its quarterly report.

To wit, Nasdaq's Listing Qualification Department has sent a letter to Digital World, reprimanding the SPAC for failing to file the requisite Form 10-Q for the quarter that ended on the 30th of June.

Bear in mind that Digital World received a similar reprimand for failing to submit the requisite filings for the quarter that ended on the 31st of March. After having submitted a plan to regain compliance with Nasdaq's requirements, Digital World received a reprieve until the 20th of November to file the Form 10-Q for it's first fiscal quarter of 2023.

Now that Digital World has fallen into an additional delinquency, any leniency shown by Nasdaq "will be limited to a maximum of 180 calendar days from the due date of the First Quarter 10-Q, or November 20, 2023." This means that the SPAC will have to submit the requisite filings for the two consecutive quarters within a couple of weeks, ultimately depending on the magnitude of leniency awarded.

Digital World intends to submit a plan in early September to regain compliance with the latest breach of Nasdaq rules.

Of course, Digital World only recently reached settlement with the SEC for misleading investors by failing to disclose a number of merger-related preliminary discussions with TMTG as well as other investors in the spring and summer of 2021.

so... short DWAC?

— zerohedge (@zerohedge) August 25, 2023

Against this backdrop, it is hardly a surprise that some investors are getting disillusioned. Consider the fact that even the conservative-leaning publication ZeroHedge chose to take a dig at Digital World's never-ending litany of travails, as shown in the tweet above.