Digital Ally sets $15 million public offering price

LENEXA, KS - Digital Ally , Inc. (NASDAQ:DGLY), a company specializing in advanced video recording products and safety solutions for various industries, has announced the pricing of a public offering expected to raise approximately $15 million, before underwriting fees and estimated offering expenses. The offering comprises 100 million Common Units, each including one share of common stock or a Pre-Funded Warrant, along with Series A and B Warrants to purchase additional shares of common stock. According to InvestingPro data, the company faces significant financial challenges, with a weak financial health score and a market capitalization of just $0.86 million. The company’s revenue has declined by 32% over the last twelve months.

The offering price is set at $0.15 per Common Unit, or $0.149 for each Pre-Funded Unit, with the Pre-Funded Warrants exercisable immediately. Series A Warrants, exercisable post-stockholder approval, have a five-year term with an initial exercise price of $0.1875 per share. Series B Warrants, also requiring stockholder approval, carry a 2.5-year term and an initial exercise price of $0.300 per share, with an alternative cashless exercise option. InvestingPro subscribers can access 16 additional investment tips and comprehensive financial metrics to better evaluate this offering’s potential impact.

To accommodate potential over-allotments, Digital Ally has granted Aegis Capital Corp., the sole book-running manager for the offering, a 45-day option to purchase additional shares and warrants up to 15% of the amounts sold in the offering. The transaction is anticipated to close on or about February 14, 2025, subject to customary closing conditions.

Digital Ally intends to utilize the net proceeds from the offering, alongside existing cash, for general corporate purposes and working capital. The offering is made pursuant to an effective registration statement on Form S-1, filed with the U.S. Securities and Exchange Commission and declared effective on February 12, 2025.

This press release, which provides information about the company’s offering, does not constitute an offer to sell or a solicitation of an offer to buy any securities. The sale of these securities will not be conducted in any state or jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Digital Ally’s suite of products serves law enforcement, emergency management, fleet safety, and event security, among other markets. The company’s expansion includes the acquisition of organizations with positive earnings and growth potential. Recent InvestingPro data shows concerning metrics, including a current ratio of 0.52 and significant stock price decline of over 92% in the past year. The company’s RSI indicates oversold territory, suggesting potential near-term price stabilization.

The details of the offering will be available in the final prospectus filed with the SEC, accessible on the SEC’s website. Interested parties are advised to fully review the prospectus before investing. The information in this article is based on a press release statement.

In other recent news, Digital Ally, a manufacturer specializing in radio and TV broadcasting and communications equipment, has seen a series of developments. The company regained compliance with Nasdaq’s financial report filing requirements after previously facing non-compliance issues. However, it was notified by Nasdaq that it does not meet the Stockholders’ Equity Requirement, with the reported stockholders’ equity falling below the minimum threshold.

The company is currently exploring options to address this shortfall and intends to submit a compliance plan within the stipulated timeframe. In another development, Digital Ally received a notice indicating non-compliance with Nasdaq’s minimum bid price requirement, with the company’s common stock trading below the $1.00 threshold for a consecutive period.

In addition, the outcomes of Digital Ally’s annual stockholders meeting were reported, with key decisions including the re-election of four directors and the ratification of the company’s independent accounting firm. The stockholders also approved key proposals related to transactions contemplated by a securities purchase agreement and a potential reverse stock split.

Lastly, the company received a delinquency notification from Nasdaq due to a delay in filing its quarterly financial report, with the company working diligently to complete and file the overdue report. These developments are based on the company’s recent filings with the Securities and Exchange Commission.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.