Cloud services provider specializing in Unified Communications as a Service, Digerati Technologies Inc (OTCMKTS:DTGI), on September 6, 2022, announced the signing of a definitive business combination agreement with Minority Equality Opportunities Acquisition Inc. This is the first Minority led special purpose acquisition firm to list on NASDAQ. The purpose is to implement a business combination.
Trading Data
On Tuesday, DTGI stock surged 15.91% to $0.1275 with more than 15.23 million shares, compared to its average volume of 319.31K shares. The stock moved within a range of $0.1089 – 0.1930 after opening trade at $0.1100.
Digerati Technologies to List on NASDAQ via Business Combination with Minority Equality Opportunities Acquisition Inc.
Some of the highlights include a combined company having an initial equity value of about $228 million resulting in an enterprise value of about $145 million. The present Digerati management team will carry on operating the business. Additionally, the Digerati Board of Directors will be with a single additional director to be appointed by the Company.
Arthur L. Smith, Chief Executive Officer of Digerati said that the business combination resulting in the NASDAQ listing for the firm positions it for continued growth. Smith added that being NASDAQ listed and the financial partnership with Post Road Group will grow its M&A strategy.
The CEO also said that the transaction will contribute to organic growth and believes it is an ideal transaction for Digerati shareholders.
Shawn Rochester, Chairman and Chief Executive Officer of MEOA said that Digerati is well-positioned as an emerging provider of UCaaS solutions to the SME market. Rochester added that the proposed merger enables the firm with its organic growth and acquisition strategy.
Key Quote
Arthur L. Smith, Chief Executive Officer of Digerati, stated, “This business combination that results in a NASDAQ listing for our Company positions us for continued growth in a rapidly expanding and highly-fragmented market. We believe being a NASDAQ listed company, along with our financial partnership with Post Road Group, will facilitate acceleration of our M&A strategy in a market with a healthy pipeline of acquisition candidates. This transaction will also contribute to organic growth as we continue providing small to medium-sized businesses with robust solutions and superior customer service tailored for this market segment. We believe this is an ideal transaction for current Digerati shareholders since it avoids a reverse stock split that is customary under a re-IPO event associated with an uplist to NASDAQ or NYSE.”
Technical Data
DTGI stock is trading above the 20-Day and 50-Day Moving averages of $0.11 and $0.10 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.10. The company has a total market capitalization of $17.85 million.
