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OVERLAND PARK, KS - Digital Ally , Inc. (NASDAQ:DGLY), a company specializing in radio and TV broadcasting and communications equipment, announced today that it has adjourned a special meeting of stockholders originally convened on Sunday. According to InvestingPro data, the company faces significant financial challenges, with a weak financial health score and a current market capitalization of just $2.18 million. The meeting’s purpose was to seek approval for an amendment to the articles of incorporation, aiming to increase the authorized shares from 210 million to over 5 billion, with the common stock shares set at a par value of $0.001 each. This move comes as the company’s stock has experienced a dramatic decline, with InvestingPro showing a 98.7% drop in share price over the past year.
The adjournment is intended to allow the company to gather additional votes for the proposal. The reconvened meeting is scheduled for Thursday, April 21, 2025, at 4:00 p.m. Eastern Time, to be held at the company’s headquarters located at 6366 College Blvd., Overland Park, KS.
Stockholders of record will be able to vote in the same manner as previously outlined in the Definitive Proxy Statement filed with the SEC on March 4, 2025. Proxies submitted before the initial meeting will remain valid for the upcoming meeting unless they are duly changed or revoked before voting takes place.
The increase in authorized shares could provide Digital Ally with the flexibility for future corporate needs, including but not limited to, financing activities, stock splits, and equity incentives.
This move comes as many companies in the tech sector are re-evaluating their capital structures to stay agile in a rapidly evolving market landscape. The outcome of the vote will be disclosed in a subsequent filing with the SEC.
Digital Ally’s management has not provided any further details on the strategic rationale behind the proposed increase in authorized shares. Shareholders and investors are advised to review the company’s SEC filings for additional information regarding this proposal. The information in this article is based on a press release statement from Digital Ally, Inc.
In other recent news, Digital Ally, Inc. has announced the pricing of a public offering expected to raise approximately $15 million before underwriting fees and estimated expenses. The offering consists of 100 million Common Units, each including one share of common stock or a Pre-Funded Warrant, and Series A and B Warrants to purchase additional shares of common stock. The company intends to use the net proceeds from this offering for general corporate purposes and working capital. Concurrently, Digital Ally is seeking shareholder approval to amend its articles of incorporation to increase the number of authorized shares from 210 million to 5.01 billion. This proposal aims to provide the company with greater flexibility in corporate financing and potential strategic transactions. The special meeting to vote on this amendment was adjourned and is rescheduled to reconvene on April 13, 2025. Shareholders are encouraged to review the proxy materials and cast their votes on this significant corporate matter. These developments are part of Digital Ally’s broader strategy to evaluate and enhance its capital structure.
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