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LENEXA, KS - Digital Ally, Inc. (NASDAQ: DGLY), a company specializing in advanced video recording products and safety solutions, has announced a 1-for-20 reverse stock split of its common stock. The announcement comes as the company’s stock has fallen nearly 99% over the past year, according to InvestingPro data, with shares currently trading at $0.03. The reverse split is set to take effect at the opening of trading on May 7, 2025, with the common stock trading on the Nasdaq Capital Market under a new CUSIP number 25382T309.
The decision for the reverse stock split was finalized by the company’s Board of Directors on April 10, 2025, following approval from the stockholders at the annual meeting on December 17, 2024. The approved amendment to the company’s Amended and Restated Certificate of Incorporation allows for a reverse stock split at a ratio determined by the Board within the range of 1-for-5 to 1-for-20. Financial data from InvestingPro reveals concerning metrics, including a weak financial health score and negative EBITDA of -$8.35M in the last twelve months. The platform offers 12 additional investment tips for DGLY subscribers.
Stockholders who possess their shares in book-entry form or through brokerage accounts will not need to take any action as the exchange of their shares will be managed automatically. Those holding stock certificates will receive instructions from the company’s transfer agent, Securities Transfer Corporation, on how to exchange their certificates. For any inquiries, stockholders may contact Securities Transfer Corporation at (469) 633-0101.
Digital Ally, through its subsidiaries, operates in various sectors including video technology, health protection products, healthcare revenue cycle management, ticket brokering, event production, and jet chartering. The company aims to grow by incorporating organizations with positive earnings, potential for growth, innovation, and organizational synergies. However, recent financial performance shows significant challenges, with revenue declining by 30% and a current ratio of 0.35, indicating potential liquidity concerns.
This news is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. These statements are not guarantees of future performance and actual results may differ significantly from those projected. Digital Ally does not intend to update any forward-looking statements to reflect subsequent events or circumstances. The company’s next earnings report is scheduled for May 16, 2025, which investors can track along with comprehensive financial metrics through InvestingPro.
In other recent news, Digital Ally, Inc. has announced the adjournment of a special stockholder meeting to gather additional votes on a proposal to increase its authorized shares from 210 million to 5.01 billion. This proposal, if approved, would provide the company with flexibility for future corporate financing and strategic transactions. The reconvened meeting is scheduled to take place at the company’s headquarters in Overland Park, Kansas. In another development, Digital Ally received a notification of non-compliance from Nasdaq due to a delay in filing its Annual Report for the period ending December 31, 2024. The company is required to submit a written explanation regarding the delay by April 30, 2025, and is working to complete the overdue report. Despite the non-compliance notice, Digital Ally’s listing on Nasdaq remains unaffected at this time. Management has not disclosed specific reasons for the proposed increase in authorized shares, but the move aligns with many tech companies’ strategies to adjust capital structures. Investors are advised to review the company’s SEC filings for detailed information on these developments.
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