(Reuters) -The owner of Donald Trump’s social media company Truth Social said on Monday it had cooperated with an inquiry from the Financial Industry Regulatory Authority (FINRA) tied to its blank-check merger.
The inquiry from FINRA, Wall Street’s self-regulator, was related to trading prior to the announcement of the deal with Digital World Acquisition Corp, and should not be viewed as an indication of wrongdoing, Trump Media and Technology Group (TMTG) said.
Trump Media has been on a roller-coaster ride since going public. An army of Trump supporters and speculators snapped up the company’s shares, sending them soaring as much as 59% in their Nasdaq debut on March 26.
The stock has since reversed those gains, leaving it with a market value of almost $7 billion. Last week, it delayed its quarterly report after dismissing its auditor, BF Borgers, which the Securities and Exchange Commission charged with “massive fraud” earlier this month.
The company also reported its earnings earlier on Monday, disclosing a wider loss in the first quarter due to certain non-cash expenses it incurred prior to closing its merger with a blank-check company.
Net loss for the three months ended March 31 was $327.6 million, the company said on Monday, compared to $210,300 the year before.
The vast bulk of “merger-related expenses” were dispensed with, TMTG CEO Devin Nunes said in a statement.
(Reporting by Niket Nishant in Bengaluru; Editing by Alan Barona)
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