Draper Oakwood (DOTA) Announces Vote Results
Draper Oakwood Technology Acquisition, Inc., announced this evening that shareholders approved their business combination with Reebonz Limited. No details on vote counts or redemption values/amounts were provided, however, Reebonz has applied for listing of its ordinary shares and warrants on the NASDAQ Stock Market under the ticker “RBZ”.
However, will Reebonz even be qualified to list on the Nasdaq? Well, that will depend on a lot of things, such as the share price, market cap, and number of shareholders. However, the easiest to address will be the number of shareholders and share price. First off, regarding shareholders and given what we already know, there should have been a ton of redemptions or DOTA wouldn’t have needed to arrange for two last minute backstops. So, liquidity is going to look meager. As for share price, DOTA closed today at $5.13 and that shouldn’t be the last of the selling pressure. Especially once the shares underlying the Rights hit shareholder accounts post-closing (They’ll be moving into I-AM’s neighborhood).
Frankly, just based on the number or shareholders left post-combination, Reebonz should miss qualifications for a Nasdaq listing, but I’m not sure that even matters to investors if everyone already redeemed.
Regardless, we get to take another SPAC off the board, but wow, this was messy. We’ll look for the finer details and report back when further details become available.