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Digital Ally , Inc. (NASDAQ:DGLY), a company specializing in radio and TV broadcasting and communications equipment, has seen its stock decline nearly 100% over the past year according to InvestingPro data. The company announced a significant change to its capital structure on Thursday, May 22, 2025. The company filed a certificate of amendment with the Secretary of State of Nevada to enact a one-for-one hundred reverse stock split of its common stock, effective the same day at 5:30 p.m. Eastern Time. The move comes as InvestingPro data shows the company’s financial health score at a concerning 0.99, labeled as WEAK, with the stock trading at just 0.01 times its book value.
As a result of the reverse stock split, every one hundred shares of Digital Ally’s common stock were converted into one share. This action did not alter the total number of authorized shares of capital stock as per the company’s Articles of Incorporation. The reverse stock split was implemented without issuing any fractional shares. Instead, shareholders who would have received fractional shares were given one whole share of common stock.
The reverse stock split also proportionally affected all outstanding options and warrants of the company as of the effective date. The common stock began trading on a split-adjusted basis on Nasdaq when the market opened on Friday, May 23, 2025. The new CUSIP number for the post-split common stock is 25382T408.
Securities Transfer Corporation, the company’s transfer agent, is managing the exchange process for the reverse stock split and has provided stockholders with the necessary instructions for the exchange of their stock certificates.
The company’s decision to implement a reverse stock split followed approval from its stockholders at a special meeting held on May 6, 2025. This move aims to increase the market price per share of the common stock, potentially improving marketability and compliance with Nasdaq’s listing requirements. InvestingPro analysis reveals 12 additional key insights about Digital Ally’s financial position and market performance, including crucial metrics about its cash burn rate and operational efficiency. Subscribers can access these exclusive insights and detailed financial analysis.
The details of the Charter Amendment related to the reverse stock split are included in the Form 8-K filed by Digital Ally, Inc. as Exhibit 3.1. The information in this article is based on the statements provided in the company’s SEC filing.
In other recent news, Digital Ally, Inc. has announced a 1-for-100 reverse stock split, which will take effect on May 23, 2025. This decision follows a stockholder-approved proposal to amend the company’s Certificate of Incorporation, reducing the number of outstanding shares from approximately 166.8 million to 1.67 million. Additionally, Digital Ally has been granted continued listing on the Nasdaq Stock Market after a panel review, contingent on meeting specific compliance criteria by June 2025. The company is working to satisfy a $2.5 million stockholders’ equity requirement and a $1.00 minimum bid price requirement. In another development, Digital Ally has postponed a special shareholder meeting to solicit additional votes on a proposal to increase authorized shares from 210 million to 5.01 billion. Moreover, the company has received a notification of non-compliance from Nasdaq due to a late filing of its Annual Report for 2024, although this does not immediately affect its listing. Digital Ally is actively working to resolve this issue and resume regular filing intervals.
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