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OVERLAND PARK, KS— Digital Ally , Inc., a manufacturing company specializing in radio and TV broadcasting and communications equipment, with a current market capitalization of just $2.1 million and trading at $0.03 per share, announced today that it held a special meeting of stockholders and subsequently adjourned it to solicit additional votes on a key proposal. The proposal under consideration is to amend the company’s articles of incorporation to increase the authorized shares of its capital stock from 210 million to 5.01 billion, with 5 billion of these shares classified as common stock with a par value of $0.001 per share. According to InvestingPro data, the company is currently operating with a significant debt burden and rapidly burning through cash, potentially explaining the need for additional share authorization.
The meeting, initially convened today, will reconvene on April 29, 2025, at 4:00 p.m. Eastern Time at the company’s headquarters in Overland Park, Kansas. This move is aimed at allowing Digital Ally more time to gather the necessary shareholder support for the amendment.
Stockholders who have already submitted their proxies for the special meeting do not need to take any further action for their votes to count at the reconvened meeting, unless they decide to change or revoke their proxies before the vote at the upcoming session.
Digital Ally’s management, led by Chairman and Chief Executive Officer Stanton E. Ross, has not publicly commented on the specific reasons for the proposed increase in capital stock. The company’s shares are traded on The Nasdaq Capital Market LLC under the ticker symbol (NASDAQ:DGLY).
This development is based on the company’s filing with the U.S. Securities and Exchange Commission and comes as the company seeks to adjust its capital structure. The outcome of the reconvened special meeting will be closely watched by investors and market analysts, as it may have implications for the company’s future financing and growth strategies. InvestingPro analysis reveals concerning metrics, including a weak financial health score of 1.44 and a current ratio of 0.52, indicating potential liquidity challenges. Subscribers to InvestingPro have access to 13 additional key insights about Digital Ally’s financial position and future prospects.
In other recent news, Digital Ally, Inc. has made several significant announcements. The company is seeking shareholder approval to amend its articles of incorporation to increase its authorized shares from 210 million to over 5 billion. This move is intended to provide the company with greater flexibility for future corporate needs, such as financing activities, stock splits, and equity incentives. Digital Ally has also priced a public offering expected to raise approximately $15 million before underwriting fees and expenses. This offering includes 100 million Common Units, each with a share of common stock or a Pre-Funded Warrant, along with Series A and B Warrants for additional shares. The proceeds from this offering will be used for general corporate purposes and working capital. Additionally, the company has adjourned a special meeting of stockholders to gather more votes on the share increase proposal, rescheduling it for April 21, 2025. These developments are part of Digital Ally’s strategy to adapt its capital structure in a changing market environment.
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