Digital Ally, Inc. Announces Pricing of $40.04 Million Registered Direct Offering Priced At-The-Market Under Nasdaq Rules
January 27 2021 - 8:23PM
Digital Ally, Inc., (NASDAQ: DGLY) (the "Company"), which develops,
manufactures and markets advanced video recording products and
other critical safety products for law enforcement, emergency
management, fleet safety and security, today announced that it has
entered into a securities purchase agreement with institutional
investors for the issuance and sale of 14,300,000 its shares of
common stock (pursuant to the direct sale of shares of the
Company’s common stock and pre-funded warrants issuable to
investors who would, otherwise, beneficially own more than 9.99% of
the Company’s outstanding shares of common stock, if issued shares
of common stock) and warrants to purchase up to 14,300,000 of its
shares of common stock at a price of $2.80 per share and
accompanying warrant for aggregate gross proceeds
of $40,040,000, in a registered direct offering priced
at-the-market under Nasdaq rules. The warrants will have an
exercise price of $3.25 per share, are exercisable
immediately and will expire five years following the date of
issuance.
Kingswood Capital Markets, division
of Benchmark Investments, Inc., is acting as exclusive
placement agent for the offering.
The offering is expected to close on or
about February 1, 2021, subject to the satisfaction of
customary closing conditions.
The offering is being made pursuant to an
effective shelf registration statement on Form S-3 (File No.
333-239419) previously filed with the Securities and Exchange
Commission (the "SEC") on June 25, 2020, and declared
effective on July 2, 2020. The offering of the shares of
common stock and accompanying warrants, and pre-funded warrants and
accompanying warrants, will be made only by means of a prospectus,
including a prospectus supplement, forming a part of the effective
registration statement, describing the terms of the proposed
offering, which will be filed with the SEC. The Company will
also file a Form 8-K in connection with the securities purchase
agreement and the closing of the offering.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy, nor will there be
any sales of these securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of such
jurisdiction.
When available, copies of the prospectus
supplement relating to this registered direct offering, together
with the accompanying prospectus, can be obtained at
the SEC's website at www.sec.gov or
from Kingswood Capital Markets, division of Benchmark
Investments Inc., 17 Battery Place, Suite 625, New York,
NY 10004, Attention: Syndicate Department, or via email
at syndicate@kingswoodcm.com or telephone at (212)
404-7002. Before investing in this offering, interested parties
should read in their entirety the prospectus supplement and the
accompanying prospectus and the other documents that the Company
has filed with the SEC that are incorporated by reference
in such prospectus supplement and the accompanying prospectus,
which provide more information about the Company and such
offering.
About Digital Ally
Digital Ally®, headquartered in Lenexa, KS,
specializes in the design and manufacturing of high quality video
recording equipment, video analytic software and disinfectant and
related safety products. Digital Ally pushes the
boundaries of technology in industries such as law enforcement,
emergency management, fleet safety, safety products and security.
Digital Ally’s complete product solutions include vehicle and body
cameras, flexible software storage, automatic recording technology
and various critical safety products. These products work
seamlessly together and are simple to install and operate. In
addition, Digital Ally launched virus-response product
lines including a non-contact thermometer/controlled-entry device
under the Company’s ThermoVu™ brand and an EPA Category IV
disinfectant/sanitizer under the Company’s Shield™ brand. The
Company has also recently launched its Shield line of PPE products,
including electrostatic sprayers, masks and gloves. Digital
Ally products are sold by domestic direct sales
representatives and international distributors worldwide.
For additional news and information please
visit www.digitalallyinc.com or follow
additional Digital Ally, Inc. social media channels
here:
Facebook I Instagram I LinkedIn I Twitter
Contact Information
Stanton Ross, CEO Tom Heckman, CFO Digital Ally, Inc.
913-814-7774 info@digitalallyinc.com
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Act of 1934. These
forward-looking statements are based largely on the expectations or
forecasts of future events, can be affected by inaccurate
assumptions, and are subject to various business risks and known
and unknown uncertainties, a number of which are beyond the control
of management. Therefore, actual results could differ materially
from the forward-looking statements contained in this press
release. A wide variety of factors that may cause actual results to
differ from the forward-looking statements include, but are not
limited to, the following: the Company’s ability to complete the
financing, its intended use of proceeds, the Company’s ability to
comply with the applicable continued listing requirements or
standards of Nasdaq, competition from larger, more established
companies with far greater economic and human resources, its
ability to attract and retain customers and quality employees, the
effect of changing economic conditions, and changes in government
regulations, tax rates and similar matters. These cautionary
statements should not be construed as exhaustive or as any
admission as to the adequacy of the Company’s disclosures. The
Company cannot predict or determine after the fact what factors
would cause actual results to differ materially from those
indicated by the forward-looking statements or other statements.
The reader should consider statements that include the words
“believes,” “expects,” “anticipates,” “intends,” “estimates,”
“plans,” “projects,” “should,” or other expressions that are
predictions of or indicate future events or trends, to be uncertain
and forward-looking. The Company does not undertake to publicly
update or revise forward-looking statements, whether as a result of
new information, future events or otherwise. Additional information
respecting factors that could materially affect the Company and its
operations are contained in its shelf registration statement on
Form S-3 (File No. 333-239419), as filed with the Securities
and Exchange Commission.
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