Are there any regulatory approvals required that could delay the transaction?

Regulatory landscape:

The filing describes a “registration of the combination of shares” together with adjustments to convertible‑loan and stock‑option allotments. In the UK/EU framework such a share‑combination (often a reverse split or a rights issue) normally triggers a multi‑step review: (i) approval by the company’s shareholders under the Companies Act 2006, (ii) clearance from the UK Competition and Markets Authority (CMA) if the transaction could affect market concentration, and (iii), for listed securities, a prospectus‑style filing with the Financial Conduct Authority (FCA) and the London Stock Exchange (LSE) that must be accepted before the new shares can be issued or the convertible instruments can be exercised. Because the announcement also amends the convertible‑loan pool and the 2021 Stock Option Programme, the FCA will check compliance with the Market Abuse Regulation (MAR) and the Companies Act’s “fair‑dealing” rules. Any objections from the CMA or delays in the FCA’s review could push the effective date out by several weeks.

Trading implications:

Until the FCA/LSE sign‑off is received, the new share‑combination and the expanded convertible‑loan/option pool remain “pending” and the market will price in a regulatory‑risk premium. In the short‑term, the stock (DIGI) may trade on the lower side of its recent range (the sentiment score of 10 suggests a very bullish tilt, but the pending approval injects downside uncertainty). Technicals show the price hovering just below the 20‑day EMA, a level that often acts as a resistance point when a regulatory hurdle looms. Traders could consider a cautious long‑only entry only after the FCA confirmation (e.g., a breakout above the 20‑day EMA with volume) or, if risk‑averse, a short‑term put spread to capture potential knock‑back if the approval is delayed. Monitoring FCA announcements and any CMA statements over the next 5‑10 trading days will be key to timing any position.