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Digerati Technologies Terminates its Business Combination Agreement with Minority Equality Opportunities Acquisition, Inc.
SAN ANTONIO, TX (GlobeNewswire) – June 23, 2023 – 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, announced today that it has terminated its Business Combination Agreement (the “BCA”) with Minority Equality Opportunities Acquisition, Inc. (“MEOA”).
Arthur L. Smith, CEO of Digerati, commented, “Due to the circumstances created by the trading halt of MEOA’s stock and related Nasdaq listing application approval issues, we determined it was in the best interest of Digerati and its shareholders to terminate the BCA. Although we pursued this transaction for all the right reasons, including meeting certain corporate objectives, we reached a point where we had to do what was best for the Company and its shareholders. We need to move on, put this transaction and the associated resources and costs behind us, and continue building on the solid foundation we have constructed to date via our disciplined acquisition strategy.”
Smith, continued, “Our foundation consists of a great business built by an exceptional team that has executed almost flawlessly over the last six years by sourcing, qualifying, and closing on six (6) acquisitions and subsequently delivering on fundamental ROI and EBITDA objectives upon integration. We have a solid and proven business model that has taken us from $200,000 in annual revenue to over $32 million since its launch in FY2017. During the current 2023 fiscal year, we optimized our acquisition platform that was built for scaling organically and via mergers and acquisitions. At this point, we are eager to return to acquisition mode and pursue strategic opportunities that have been on hold pending the closing of the business combination with MEOA.”
About Digerati Technologies, Inc.
Digerati Technologies, Inc. (OTCQB: DTGI) is a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the business market. Through its operating subsidiary Verve Cloud, Inc. (f/k/a T3 Communications, Nexogy, and NextLevel Internet), the Company is meeting the global needs of small businesses seeking simple, flexible, reliable, and cost-effective communication and network solutions including, cloud PBX, cloud telephony, cloud WAN, cloud call center, cloud mobile, and the delivery of digital oxygen on its broadband network. The Company has developed a robust integration platform to fuel mergers and acquisitions in a highly fragmented market, as it delivers business solutions on its carrier-grade network and Only in the Cloud™.
Forward-Looking Statements
The information in this news release includes certain forward-looking statements such as ‘continue building on the solid foundation we have built to date via our disciplined acquisition strategy’ and ‘we will pursue other strategic opportunities to grow and enhance stakeholder value,’ that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements related to the future financial performance of the Company.
Although the Company believes that the expectations reflected in the forward-looking statements such as achieving record levels of new installed revenue and improved sales and service delivery performance are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, our inability to source suitable acquisition targets, failure to execute growth strategies, lack of product development and related market acceptance, the impact of competitive services and pricing, general economic conditions, and other risks and uncertainties described in the Company’s periodic filings with the Securities and Exchange Commission.
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