Lenexa, KS, April 04, 2018 (GLOBE NEWSWIRE) -- DIGITAL ALLY, INC. (NASDAQ: DGLY) today announced that it has entered into definitive agreements in a private placement with several institutional investors (including existing investors) to purchase an aggregate of $6,050,000 of senior secured convertible notes and common stock warrants to purchase additional shares of common stock. The notes have a fixed conversion price of $2.50, which represents a premium above the closing price of the Company's common stock on Tuesday, April 3, 2018. The warrants, which have an exercise price of $3.00, will expire on the fifth anniversary of the date they become exercisable.

The offering, which is part of the overall strategic alternatives process commenced by the Company in November 2017, is expected to yield gross proceeds of $5,500,000, before deducting placement agent fees and other estimated offering expenses.  The proceeds will be used primarily to pay off the 8% senior secured convertible debentures issued in December 2016, other indebtedness, and for general corporate and working capital purposes.

Roth Capital Partners is acting as the sole placement agent in connection with this offering.

The securities were offered pursuant to the exemption from registration afforded by Section 4(a)(2) under the Securities Act of 1933, as amended (the "Act"), and Regulation D promulgated thereunder. Such warrants and the common shares issuable upon exercise of such warrants have not been registered under the Act, and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy 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

Digital Ally, Inc., is a publicly held company, trading on NASDAQ (DGLY) and headquartered in Lenexa, KS, that specializes in the design and manufacturing of the highest quality video recording equipment and video analytics software. Digital Ally pushes the boundaries of technology in industries such as law enforcement, emergency management, commercial fleets, and consumer use. Digital Ally's complete product solutions include in-car and body cameras, cloud and local management software, and patented automatic recording technology. These products work seamlessly together and are simple to install and operate. For more information visit http://Digitalallyinc.com

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. 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. Therefore, actual results could differ materially from the forward-looking statements contained in this press release. A wide variety of factors that may cause actual results to differ from the forward-looking statements include, but are not limited to, the following: whether the Company will prevail in its patent litigation against Axon Enterprise, Inc.; the amount of any damages that might be awarded to the Company if it is successful in the litigation;  terms of any royalty it may obtain from Axon as a result of the litigation; whether the Company will be able to obtain an injunction against Axon; competition from larger, more established companies with far greater economic and human resources; its ability to attract and retain customers and quality employees; and the effect of changing economic conditions. These cautionary statements should not be construed as exhaustive or as any admission as to the adequacy of the Company's disclosures. It cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", "projects", "should", or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. Digital Ally does not undertake to publicly update or revise forward-looking statements, whether because of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company and its operations are contained in its annual report on Form 10-K for the year ended December 31, 2016 and quarterly report on Form 10-Q for the three and nine months ended September 30, 2017, as filed with the Securities and Exchange Commission.

Contact Information:     Stanton Ross, CEOTom Heckman, CFODigital Ally, Inc.913-814-7774info@digitalallyinc.com

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