Digital Ally Prices $3.0 Million Registered Equity Offering
August 21 2017 - 9:25AM
Marketwired
Digital Ally Prices $3.0 Million Registered Equity Offering
LENEXA, KS-(Marketwired - Aug 21, 2017) - Digital Ally, Inc.
(NASDAQ: DGLY) ("Digital or the "Company"), which develops,
manufactures and markets advanced video surveillance products for
law enforcement, homeland security and commercial applications,
today announced that it has priced a $3.0 million equity offering
composed of common stock and warrants with institutional
investors.
The Company has entered into a definitive securities purchase
agreement with the investors under which it agreed to issue and
sell, in a registered direct offering, an aggregate of 1,000,000
shares of common stock at an offering price of $3.00, for expected
gross proceeds of approximately $3.0 million before the deduction
of the placement agent fee and offering expenses. For each share of
common stock purchased, investors will receive two registered
warrants, each with an exercise price of $3.36 (the "Series A-1
Warrant" and "Series A-2 Warrant"). The Series A-1 Warrants are to
purchase up to, in the aggregate, 680,000 shares of common stock
(or 0.68 warrant shares per share of common stock purchased) and
have a term of 5 years commencing 6 months following the closing
date. The Series A-2 Warrants are to purchase up to, in the
aggregate, 200,000 shares of common stock (or 0.20 warrant shares
per share of common stock purchased) and have a term of 5 years
commencing immediately. Additionally, to the extent that an
investor's beneficial interest would otherwise exceed 9.9% of the
issued and outstanding shares of common stock, the Company will
issue to such investor, in lieu of shares of common stock at
closing, a pre-funded common stock warrant that is immediately
exercisable (the "Pre-Funded Warrant"). Any such investor, to the
extent such Series B Warrants are issued, shall pay $2.99 per share
at the closing and $0.01 per share upon exercise of the Pre-Funded
Warrant.
WestPark Capital, Inc. acted as the exclusive placement agent
for the offering.
The Company intends to use the net proceeds to retire $1.0
million principal amount of its Secured Convertible Debentures with
an outstanding principal balance of $4.0 million and the entire
$700,000 principal amount of its subordinated notes and the balance
for general corporate purposes. The closing of the offering is
expected to occur on or about August 23, 2017, subject to customary
closing conditions.
The Shares and the Warrants are being offered by the Company
pursuant to a registration statement on Form S-3 (File No.
333-202944) (the "Registration Statement"), previously filed with
and subsequently declared effective by the U.S. Securities and
Exchange Commission ("SEC"). A final prospectus relating to the
offering will be filed with the SEC and will be available on the
SEC's website at www.sec.gov.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the securities described
herein, nor shall there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About Digital Ally, Inc. Digital Ally, Inc. develops,
manufactures and markets advanced technology products for law
enforcement, homeland security and commercial applications. The
Company's primary focus is digital video imaging and storage. The
Company is headquartered in Lenexa, Kansas, and its shares are
traded on The Nasdaq Capital Market under the symbol "DGLY." For
additional news and information please visit www.digitalallyinc.com
or follow us on Twitter @digitalallyinc and Facebook
www.facebook.com/DigitalAllyInc
Follow additional Digital Ally Inc. social media channels here:
LinkedIn: https://www.linkedin.com/company/digital-ally-inc-
Instagram: https://instagram.com/digitalallyinc/ Google+:
https://plus.google.com/u/0/b/106768996895118138587/106768996895118138587/posts/p/pub
Pinterest: https://www.pinterest.com/digitalallyinc/
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 regarding the registered
offering and the intended use of proceeds from the offering. The
offering is subject to market and other conditions and there can be
no assurance as to whether or when the offering may be completed or
as to the actual size or terms of the offering. 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. These risks and uncertainties include, but are not
limited to: market conditions; risks associated with the cash
requirements of our business; and other risks and uncertainties set
forth in our annual report on Form 10-K for the year ended December
31, 2016 and quarterly report on Form 10-Q for the three and six
months ended June 30, 2017, as filed with the SEC, including the
risks set forth in our Registration Statement. We do not undertake
to publicly update or revise forward-looking statements, whether as
a result of new information, future events or otherwise.
For Additional Information, Please Contact: Stanton E. Ross CEO
(913) 814-7774 Thomas J. Heckman CFO (913) 814-7774
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