Digerati Technologies to List on NASDAQ via Business Combination with Minority Equality Opportunities Acquisition Inc.

Transaction Results in $105 Million Enterprise Valuation for Digerati Technologies

SAN ANTONIO, Texas, Sept. 06, 2022 (GLOBE NEWSWIRE) -- Digerati Technologies, Inc. (OTCQB: DTGI) ("Digerati" or the "Company"), a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the small to medium-sized business (“SMB”) market, is pleased to announce its signing of a definitive business combination agreement with Minority Equality Opportunities Acquisition Inc. (NASDAQ: MEOA) (“MEOA”), which is the first Minority led special purpose acquisition company to list on NASDAQ with the mission of executing a business combination with a minority owned, led or founded business.

Highlights of the transaction include:

• Transaction to result in Digerati becoming a listed company on NASDAQ and delisting from OTC Markets.
• Combined company to have an initial equity value of approximately $228 million translating into an enterprise value of approximately $145 million, assuming no redemptions by MEOA stockholders.
• MEOA currently has approximately $129.9 million cash in trust as of September 2, 2022. 
• New capital and being a NASDAQ listed company is expected to provide Digerati with flexibility for additional strategic and accretive acquisitions in the UCaaS sector.
• The current Digerati management team will continue to operate the business.
• The current Digerati Board of Directors will remain with one additional director to be appointed by the Company and Shawn D. Rochester, CEO of MEOA, joining the Company’s Board of Directors at the closing of the transaction.
• All existing Digerati shareholders will receive 100% of their equity in the pro forma company.
  

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.”