DraftKings Announces Voluntary Delisting of Warrants
BOSTON, July 10, 2020 (GLOBE NEWSWIRE) -- DraftKings Inc. (Nasdaq: DKNG) today announced that it has notified the Nasdaq Stock Market of its intention to voluntarily delist its private placement
warrants to purchase shares of DraftKings’ Class A common stock that were issued under the Warrant Agreement, dated as of May 10, 2019 (the “Warrant Agreement”), by and among Diamond Eagle
Acquisition Corp. and Continental Stock Transfer & Trust Company, as warrant agent and transfer agent (as assigned to and assumed by DraftKings and Computershare Trust Company, N.A., a
federally chartered trust company, and Computershare Inc., a Delaware corporation, as warrant agent and transfer agent).
DraftKings issued public and private placement warrants under the Warrant Agreement that were previously listed on Nasdaq under the ticker symbol DKNGW. Following the redemption of the public warrants on July 2, 2020, the private placement warrants were assigned a new CUSIP number (26142R120) and began trading under a new ticker symbol on Nasdaq (DKNGZ). In light of the small number of holders of the private placement warrants and their limited trading volume following the redemption of the public warrants, and the costs of maintaining the listing, DraftKings has determined voluntarily to delist the private placement warrants. The delisting will be effective on the 10th day following the filing of a Form 25 with the Securities and Exchange Commission, which filing DraftKings intends to make on July 20, 2020. DraftKings anticipates that the trading of the private placement warrants (DKNGZ) will be suspended by Nasdaq at market open on July 20, 2020, and that the trading of such warrants will remain halted until such time.
After the delisting, the private placement warrants will remain outstanding and exercisable or transferable by their holders in accordance with the terms of the Warrant Agreement. DraftKings has not made arrangements for the listing and/or registration of the private placement warrants on another national securities exchange or quotation medium. To the extent that any of the private placement warrants are exercised by their current holders, the shares of DraftKings’ Class A common stock received through such exercise will be subject to the lockup arrangement applicable to the exercising holder. The continued listing of DraftKings’ Class A common stock (including such shares underlying the private placement warrants), which trades on Nasdaq under the ticker symbol “DKNG,” is not affected by the delisting of the warrants.