SOURCE: Digital Ally, Inc.

Digital Ally, Inc.

August 21, 2017 09:25 ET

Digital Ally Prices $3.0 Million Registered Equity Offering

LENEXA, KS--(Marketwired - Aug 21, 2017) -  Digital Ally, Inc. (NASDAQ: DGLY) ("Digital or the "Company"), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial applications, today announced that it has priced a $3.0 million equity offering composed of common stock and warrants with institutional investors.

The Company has entered into a definitive securities purchase agreement with the investors under which it agreed to issue and sell, in a registered direct offering, an aggregate of 1,000,000 shares of common stock at an offering price of $3.00, for expected gross proceeds of approximately $3.0 million before the deduction of the placement agent fee and offering expenses. For each share of common stock purchased, investors will receive two registered warrants, each with an exercise price of $3.36 (the "Series A-1 Warrant" and "Series A-2 Warrant"). The Series A-1 Warrants are to purchase up to, in the aggregate, 680,000 shares of common stock (or 0.68 warrant shares per share of common stock purchased) and have a term of 5 years commencing 6 months following the closing date. The Series A-2 Warrants are to purchase up to, in the aggregate, 200,000 shares of common stock (or 0.20 warrant shares per share of common stock purchased) and have a term of 5 years commencing immediately. Additionally, to the extent that an investor's beneficial interest would otherwise exceed 9.9% of the issued and outstanding shares of common stock, the Company will issue to such investor, in lieu of shares of common stock at closing, a pre-funded common stock warrant that is immediately exercisable (the "Pre-Funded Warrant"). Any such investor, to the extent such Series B Warrants are issued, shall pay $2.99 per share at the closing and $0.01 per share upon exercise of the Pre-Funded Warrant.

WestPark Capital, Inc. acted as the exclusive placement agent for the offering.

The Company intends to use the net proceeds to retire $1.0 million principal amount of its Secured Convertible Debentures with an outstanding principal balance of $4.0 million and the entire $700,000 principal amount of its subordinated notes and the balance for general corporate purposes. The closing of the offering is expected to occur on or about August 23, 2017, subject to customary closing conditions.

The Shares and the Warrants are being offered by the Company pursuant to a registration statement on Form S-3 (File No. 333-202944) (the "Registration Statement"), previously filed with and subsequently declared effective by the U.S. Securities and Exchange Commission ("SEC"). A final prospectus relating to the offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Digital Ally, Inc.
Digital Ally, Inc. develops, manufactures and markets advanced technology products for law enforcement, homeland security and commercial applications. The Company's primary focus is digital video imaging and storage. The Company is headquartered in Lenexa, Kansas, and its shares are traded on The Nasdaq Capital Market under the symbol "DGLY." For additional news and information please visit www.digitalallyinc.com or follow us on Twitter @digitalallyinc and Facebook www.facebook.com/DigitalAllyInc

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This press release contains forward-looking statements within the meaning, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 regarding the registered offering and the intended use of proceeds from the offering. The offering is subject to market and other conditions and there can be no assurance as to whether or when the offering may be completed or as to the actual size or terms of the offering. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. These risks and uncertainties include, but are not limited to: market conditions; risks associated with the cash requirements of our business; and other risks and uncertainties set forth in our annual report on Form 10-K for the year ended December 31, 2016 and quarterly report on Form 10-Q for the three and six months ended June 30, 2017, as filed with the SEC, including the risks set forth in our Registration Statement. We do not undertake to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • For Additional Information, Please Contact:
    Stanton E. Ross
    CEO
    (913) 814-7774

    Thomas J. Heckman
    CFO
    (913) 814-7774