DIGITAL ALLY, INC. (NASDAQ:DGLY) Files An 8-K Other Events

DIGITAL ALLY, INC. (NASDAQ:DGLY) Files An 8-K Other Events
Item 8.01 Other Events.

On February 1, 2021, Digital Ally, Inc. (the “Company”), to a securities purchase agreement with two investors, closed a registered direct offering (the “Offering”) of (i) 3,250,000 shares of common stock (the “Shares”), par value $0.001 per share of the Company (“Common Stock”); (ii) pre-funded warrants to purchase up to 11,050,000 shares of Common Stock at an exercise price of $0.01 per share (the “Pre-Funded Warrant Shares”), issuable to investors whose purchase of shares of Common Stock would otherwise result in such investor, together with its affiliates and certain related parties, beneficially owning more than 4.99% (or, at the election of the holder, 9.99%) of the Company’s outstanding Common Stock immediately following the consummation of the Offering (the “Pre-Funded Warrants”); and (iii) common stock purchase warrants (the “Warrants”) to purchase up to an aggregate of 14,300,000 shares of Common Stock (the “Warrant Shares”), which are exercisable for a period of five years after issuance at an initial exercise price $3.25 per share, subject to certain adjustments, as provided in the Warrants. The Company received gross proceeds of approximately $40,040,000, before deducting discounts, commissions and other offering expenses. Kingswood Capital Markets, division of Benchmark Investments, Inc. acted as the exclusive placement agent in connection with the Offering to a placement agency agreement.

As previously disclosed in the Company’s Current Report on Form 8-K filed on January 28, 2021 with the U.S. Securities and Exchange Commission (the “SEC”), the Shares, the Pre-Funded Warrants, the Pre-Funded Warrant Shares, the Warrants and the Warrant Shares were registered under the Securities Act of 1933, as amended, to a prospectus supplement to the Company’s currently effective shelf registration statement, which was initially filed with the SEC on June 25, 2020, and was declared effective on July 2, 2020, and the related base prospectus included in the Registration Statement, as supplemented by the prospectus supplement dated January 27, 2021.

The Company intends to use the net proceeds from the Offering for working capital, product development, potential acquisitions, order fulfillment and for general corporate purposes. The Company may use a portion of the net proceeds for the acquisition of businesses, products, technologies or licenses that are complementary to its business.


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Digital Ally, Inc. produces digital video imaging and storage products for use in law enforcement, security and commercial applications. The Company’s products include in-car digital video/audio recorder contained in a rear-view mirror for use in law enforcement and commercial fleets; a system that provides its law enforcement customers with audio/video surveillance from multiple vantage points and hands-free automatic activation of body-worn cameras and in-car video systems; a weather-resistant mobile digital video recording system for use on motorcycles, all-terrain vehicles (ATVs) and boats; a miniature digital video system designed to be worn on an individual’s body, and a hand-held laser speed detection device that it offers primarily to law enforcement agencies. The Company sells its products to law enforcement agencies and other security organizations, consumer and commercial fleet operators through direct sales domestically and third-party distributors internationally.

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