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OVERLAND PARK, KS - Digital Ally, Inc. (NASDAQ:DGLY), a micro-cap company with $18.6 million in trailing twelve-month revenue and a market capitalization of just $4.16 million, has signed a Master Distribution Agreement with Redwood Scientific Technologies for exclusive global distribution rights to nicotine cessation products, according to a press release statement issued Monday. InvestingPro analysis suggests the stock is currently trading below its Fair Value, though investors should note the company's WEAK financial health score.
The agreement covers Redwood's portfolio of oral thin-film products, including TBX-Free for cigarette smokers and TBX Vape-Free, which is being developed specifically for vape users.
The company described TBX Vape-Free as a "first-to-market" solution targeting nicotine addiction in vape users, though the product is still undergoing clinical testing.
No sales or marketing activities will begin until Redwood completes its final-stage clinical trial. The companies are preparing for distribution once the study concludes.
The Centers for Disease Control and Prevention reports that approximately 11.6% of U.S. adults are current cigarette smokers, representing about 28.8 million individuals, while 4.5% of adults use e-cigarettes.
"We're proud to be at the forefront of addressing this urgent health crisis," said Stan Ross, CEO of Digital Ally.
The agreement grants Digital Ally rights to Redwood's technologies, brands, trademarks, manufacturing processes, and vendor relationships.
Digital Ally operates in multiple sectors including video solution technology, healthcare revenue cycle management, ticket brokering, and event production.
In other recent news, Digital Ally has announced a reduction in its order backlog from $2.2 million to $1.7 million, alongside securing contracts valued at over $800,000. This development reflects the company's efforts to streamline operations and improve efficiency. Additionally, Digital Ally has enacted a one-for-one hundred reverse stock split, as approved by stockholders, to potentially enhance marketability and comply with Nasdaq listing requirements. The reverse stock split did not change the total number of authorized shares, and stockholders received instructions from the Securities Transfer Corporation for exchanging their stock certificates. Furthermore, Digital Ally has been granted continued listing on Nasdaq, contingent on meeting specific compliance criteria, including stockholders' equity and minimum bid price requirements. The company remains committed to fulfilling these conditions to maintain its Nasdaq listing. Digital Ally also announced a separate one-for-twenty reverse stock split to take effect earlier in May 2025, as part of its strategic initiatives.
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