Minority Equality Opportunities Acquisition in an 8-K said Digerati has called off their merger agreement. Digerati is a Hispanic-led and founded provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the SME market.
The SPAC had postponed a shareholder vote on the merger five times in the last month, saying it was working to satisfy the closing conditions.
MEOA reported last month that of the 728,815 shares tendered for redemption, the holders of 60,455 shares have withdrawn their redemption requests. That increased the total outstanding shares to 112,468 and lowered the redemption rate to 83% from 93%. The redemptions do not take effect until the closing of a business combination.
The SPAC has been under a Nasdaq trading halt since May 24 after the exchange asked the compnay for “more information.”
Digerati is on the hook for a $2 million breakup fee to the SPAC as a result of the termination, and could be required to pay an additional $1,265 million, according to the original merger agreement.
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. Read more.
