Digital Ally Announces Reverse Stock Split
Rhea-AI Summary
Digital Ally (NASDAQ: DGLY), a company specializing in video recording and safety products, has announced a 1-for-100 reverse stock split of its common stock, effective May 23, 2025. The reverse split was approved by stockholders at a special meeting on May 6, 2025, with the board selecting the maximum ratio from the approved range of 1-for-5 to 1-for-100.
Following the split, the company's outstanding shares will decrease from 166,849,183 to 1,668,492. The stock will trade under a new CUSIP number: 25382T408. While stockholders holding shares in book-entry form or brokerage accounts require no action, those with physical certificates will receive exchange instructions from Securities Transfer Corporation.
Positive
- None.
Negative
- Significant 1-for-100 reduction indicates substantial share price deterioration
- No fundamental change to company value despite share consolidation
- Potential negative market perception of reverse splits
News Market Reaction 1 Alert
On the day this news was published, DGLY declined 16.67%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Overland Park, KS, May 21, 2025 (GLOBE NEWSWIRE) -- Digital Ally, Inc. (NASDAQ: DGLY) (the “Company”), which develops, manufactures, and markets advanced video recording products and other critical safety products for a growing variety of industries and organizational functions, including law enforcement, emergency management, fleet safety and event security, today announced a 1-for-100 reverse split (the "Reverse Stock Split") of the Company’s common stock (the "Common Stock"). The Company anticipates that the Common Stock will begin trading on a split-adjusted basis on The Nasdaq Stock Market LLC (“Nasdaq”) with the open of the market on Friday, May 23, 2025. The new, post-split CUSIP number for the Common Stock will be 25382T408.
At the Company's special meeting of stockholders held on May 6, 2025, the Company’s stockholders approved a proposal to amend the Company’s Amended and Restated Certificate of Incorporation to effect a reverse split of the Common Stock at a ratio within the range of 1-for-5 to 1-for-100 shares, as determined by the Company's Board of Directors. On May 7, 2025, the Company’s Board of Directors approved the 1-for-100 Reverse Stock Split. The number of outstanding shares of Common Stock prior to the Reverse Stock Split is 166,849,183 and the number of outstanding shares of Common Stock following the Reverse Stock Split will be 1,668,492.
Information to Stockholders
Securities Transfer Corporation, the Company’s transfer agent, will send instructions to stockholders of record who hold stock certificates regarding the exchange of certificates for Common Stock. Stockholders who hold their shares of Common Stock in book-entry form or in brokerage accounts or "street name" are not required to take any action to effect the exchange of their shares of Common Stock following the Reverse Stock Split. Securities Transfer Corporation may be reached for questions at (469) 633-0101.
About Digital Ally
Digital Ally Companies (NASDAQ: DGLY) through its subsidiaries, is engaged in video solution technology, healthcare revenue cycle management, ticket brokering and marketing and event production. Digital Ally continues to add organizations that demonstrate the common traits of positive earnings, growth potential, innovation and organizational synergies.
For additional news and information please visit www.digitalally.com.
Forward-Looking Statements
The foregoing material may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the closing of the proposed offering, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the security laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.
Contact Information
Stanton Ross, CEO
Tom Heckman, CFO
Digital Ally, Inc.
913-814-7774
info@digitalallyinc.com
FAQ
What is the ratio of Digital Ally's (DGLY) reverse stock split in 2025?
When will DGLY's reverse stock split take effect?
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