Diamond Eagle Acquisition Corp. (DEAC), just released an 8-K detailing the results of their shareholder vote to combine with DraftKings and SBTech, and naturally, this combination was overwhelmingly approved. However, even though DEAC has been trading in the $17.00 range, there were still a few redemptions.
Per the filing, 8,928 shares exercised their right to redeem for cash at a redemption price of approximately $10.1245397 per share, for an aggregate amount of $90,391.89. Although, if those redeemed shares were sold into the market at an average price of $17.00 instead, holders could have made approximately $61,000 more than $90K they got by redeeming. Nobody likes leaving money on the table, so it sort of implies those redemptions were a mistake.
Regardless, no matter how you slice it, this is great result. And even more noteworthy given the current economic climate. I wonder if the team made any “bets” on that result…
- Goldman Sachs is acting as exclusive financial advisor to Diamond Eagle.
- Raine Group is acting as exclusive financial advisor to DraftKings.
- Sullivan & Cromwell LLP is acting as legal advisor to DraftKings.
- Winston & Strawn LLP is acting as legal advisor to Diamond Eagle.
- Stifel is acting as financial advisor and Herzog, Fox & Neeman and Skadden, Arps, Slate, Meagher & Flom LLP are acting as legal advisors to SBTech.
- Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC are acting as capital markets advisors.
- Goldman Sachs and Credit Suisse are acting as private placement agents to Diamond Eagle.