Digital Ally, Inc. Enters Into Securities Purchase Agreement

Digital Ally, Inc. recently disclosed in an 8-K SEC filing that it has entered into a Securities Purchase Agreement. This agreement was established with specific institutional investors on November 6, 2024. As per the agreement terms, Digital Ally, Inc. is set to issue and sell senior secured promissory notes totaling $3,600,000 and 808,377 shares of common stock, par value $0.001 each.

The private placement transaction, known as the Private Placement, resulted in approximately $3.0 million in gross proceeds before accounting for placement agent fees and other relevant offering expenses. The agreement was concluded on November 7, 2024 (the “Closing Date”).

A significant portion of the proceeds from the Private Placement, approximately $2,015,623, is designated to fully settle all liabilities, obligations, and indebtedness owed by Digital Ally, Inc. and its subsidiary, Kustom Entertainment, Inc., to Mosh Man, LLC. This payment will effectively cease the public sale process of collateral under the Mosh Man Note, as previously disclosed by the company.

Expectations entail that after settling the Mosh Man Note, and considering placement agent fees and other expenses, the remaining proceeds from the Private Placement will suffice Digital Ally’s capital requirements for about three months. Subsequently, the company anticipates the necessity of raising additional funds to implement its business plan and support ongoing operations, along with exploring the potential sale of its video solutions business in the near term.

In adherence to the Securities Purchase Agreement, Digital Ally is tasked to file a registration statement with the U.S. Securities and Exchange Commission (SEC) for a public offering within 30 days following the Closing Date. The purpose of this offering is to gather funds for various outlined uses, including repaying principal amounts owed under the Notes.

Furthermore, within five days of signing the Securities Purchase Agreement, Digital Ally’s board of directors is required to approve an amendment to the company’s bylaws concerning meeting quorum and file a preliminary proxy statement with the SEC to prompt a stockholder meeting approving certain warrants.

The attached exhibit to the filing, a Form of Senior Secured Promissory Note, offers details about the maturity, interest rates, redemptions, and other terms and conditions associated with the Notes issued under the Securities Purchase Agreement.

In conjunction with this development, Contango ORE, Inc., a separate entity, announced a significant cash distribution received from the Peak Gold JV and the commencement of its third campaign, as detailed in an attached exhibit to the filing.

It is important to note that forward-looking statements contained within these announcements are subject to inherent risks and uncertainties that could cause actual results to diverge from the projected expectations.

The information provided serves as a summary of the 8-K SEC filing submitted by Digital Ally, Inc. for public disclosure.

The original document can be referenced for detailed information and specific terms and conditions of the agreements entered by Digital Ally, Inc.

Contact information for Digital Ally, Inc. and Contango ORE, Inc. can be found on their respective websites.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Digital Ally’s 8K filing here.

Digital Ally Company Profile

Digital Ally, Inc produces and sells digital video imaging, storage, and disinfectant and related safety products for use in law enforcement, security, and commercial applications in the United States. It operates through three segments: Video Solutions, Revenue Cycle Management, and Entertainment. The company offers in-car digital video mirror systems for law enforcement; in-car digital video event recorder systems for commercial fleets; a suite of data management web-based tools to assist fleet managers in the organization, archival, and management of videos and telematics information; body-worn digital video systems for law enforcement and private security; and VuLink ecosystem that provides intuitive auto-activation functionality as well as coordination between multiple recording devices.