Digital Ally prices $3M registered equity offering
Digital Ally announced that it has priced a $3M 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 $3M 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. WestPark Capital, Inc. acted as the exclusive placement agent for the offering. The company intends to use the net proceeds to retire $1M principal amount of its Secured Convertible Debentures with an outstanding principal balance of $4M 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 subject to customary closing conditions.