Digital asset SPAC delays crucial merger vote, leaving a deeply undercapitalized Old Glory Bank waiting on a $50M lifeline
Digital Asset Acquisition Corp. postponed the shareholder vote on its merger with the parent of Old Glory Bank to Aug. 14, extending time to seek votes but not automatically reopening redemptions. The company did not disclose the redemption tally or whether any late withdrawals were allowed. Old Glory Holding Company remains undercapitalized: its Tier 1 leverage ratio was below the usual 4% threshold and far below a 14% regulatory minimum in an FDIC/Oklahoma consent order. Its disclosures also raise substantial doubt about its ability to continue as a going concern without merger proceeds. The deal requires at least $50 million in closing cash from trust funds after redemptions plus any PIPE or other financing, but no PIPE or firm transaction funding had been secured as of the latest filing. Federal Reserve and Nasdaq approvals were still pending.
