WestPark helps fund retirement of $2.5 million of subordinated notes
By Devika Patel
Knoxville, Tenn., July 17 – Digital Ally, Inc. said it will raise $12 million in an at-the-market registered direct offering and concurrent private placement of common stock and warrants with two investors.
In the at-the-market registered direct offering, the company will sell 879,766 units of one common share and a half-share short-term warrant at $13.64 per unit.
Additionally, in a concurrent private placement, the company will issue short-term warrants for about 0.25 shares and long-term warrants for one share for each unit bought in the at-the-market registered direct offering.
Each whole, short-term warrant is exercisable at $13.43 for two years, and each long-term warrant is exercisable at $13.43 for 66 months. The strike price is a 0.59% discount to the July 16 closing share price of $13.51.
WestPark Capital, Inc. is the agent.
Settlement is expected July 22.
Proceeds will be used to retire $2.5 million of subordinated notes and for general corporate purposes.
“This financing package is a significant step in the long-term development of the company,” chief executive officer Stanton E. Ross said in a press release. “It will help us accelerate our engineering and marketing efforts for our law enforcement and commercial products.”
Based in Leawood, Kan., Digital Ally manufactures surveillance and other technologies used by law enforcement, homeland security and commercial security purposes.
| Issuer: | Digital Ally Inc.
|
| Issue: | Units of one common share, about 0.75 short-term warrants and one long-term warrant
|
| Amount: | $12 million
|
| Units: | 879,766
|
| Price: | $13.64
|
| Short-term warrants: | About 0.75 short-term warrants per unit
|
| Short-term warrant expiration: | Two years
|
| Short-term warrant strike price: | $13.43
|
| Long-term warrants: | One long-term warrant per unit
|
| Long-term warrant expiration: | 66 months
|
| Long-term warrant strike price: | $13.43
|
| Agent: | WestPark Capital, Inc.
|
| Pricing date: | July 17
|
| Settlement date: | July 22
|
| Stock symbol: | Nasdaq: DGLY
|
| Stock price: | $13.51 at close July 16
|
| Market capitalization: | $51.45 million
|
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