Minority Equality Opportunities Acquisition has again delayed a vote on its proposed merger with Digerati. Postponed Wednesday until today, the vote has now been set for next Wednesday, May 31, at 2 p.m. Eastern.
The purpose of the second postponement is so the SPAC has time to work with the Nasdaq regarding a trading halt after the exchange sent a notice of “additional information requested” earlier this week. The halt was imposed following volatility in the trading price and volume of the SPAC’s securities on Wednesday morning. The SPAC said its advisors have been in contact with the Nasdaq about lifting the trading halt and securing approval of the listing application for the combined company if the deal is eventually approved.
MEOA also reports that of the 728,815 shares tendered for redemption ahead of the merger vote, the holders of 60,455 shares have withdrawn their redemption requests. That increases the total outstanding shares to 112,468 and lowers the redemption rate to 83% from 93% two days ago.
The redemptions do not take effect until the closing of a business combination.
Digerati Technologies is a Hispanic-led and founded provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the SME market.
As announced in September, Digerati was expected to have an initial equity value of approximately $228 million, translating into an enterprise value of approximately $145 million if the deal is approved, however, that assumed no shareholder redemptions.
Minority Equality Opportunities Acquisition raised $126.5M in an August 2021 IPO. Read more.
