Digital Ally Announces Reverse Stock Split
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.
Digital Ally (NASDAQ: DGLY), un'azienda specializzata in prodotti per la registrazione video e la sicurezza, ha annunciato un reverse stock split 1 per 100 delle sue azioni ordinarie, con effetto dal 23 maggio 2025. La fusione inversa è stata approvata dagli azionisti durante un'assemblea straordinaria il 6 maggio 2025, con il consiglio che ha scelto il rapporto massimo previsto, da 1 per 5 a 1 per 100.
Dopo la fusione, il numero di azioni in circolazione diminuirà da 166.849.183 a 1.668.492. Le azioni saranno negoziate con un nuovo numero CUSIP: 25382T408. Gli azionisti che detengono azioni in forma elettronica o tramite conti di intermediazione non dovranno intraprendere alcuna azione, mentre chi possiede certificati fisici riceverà istruzioni di scambio dalla Securities Transfer Corporation.
Digital Ally (NASDAQ: DGLY), una compañía especializada en productos de grabación de video y seguridad, ha anunciado una consolidación inversa de acciones 1 por 100 de sus acciones comunes, efectiva a partir del 23 de mayo de 2025. La consolidación inversa fue aprobada por los accionistas en una reunión especial el 6 de mayo de 2025, y la junta eligió la proporción máxima dentro del rango aprobado de 1 por 5 a 1 por 100.
Tras la consolidación, las acciones en circulación disminuirán de 166,849,183 a 1,668,492. Las acciones se negociarán bajo un nuevo número CUSIP: 25382T408. Los accionistas con acciones en forma electrónica o en cuentas de corretaje no necesitan realizar ninguna acción, mientras que quienes tengan certificados físicos recibirán instrucciones de intercambio por parte de Securities Transfer Corporation.
Digital Ally (NASDAQ: DGLY)는 비디오 녹화 및 안전 제품을 전문으로 하는 회사로, 2025년 5월 23일부터 발효되는 1대 100 액면병합을 발표했습니다. 이 병합은 2025년 5월 6일 특별 주주총회에서 주주들의 승인을 받았으며, 이사회는 승인된 1대 5에서 1대 100 범위 내에서 최대 비율을 선택했습니다.
병합 후 회사의 발행 주식 수는 166,849,183주에서 1,668,492주로 감소합니다. 주식은 새 CUSIP 번호 25382T408로 거래됩니다. 전자 등록 또는 중개 계좌로 주식을 보유한 주주는 별도의 조치가 필요 없으며, 실물 증서를 가진 주주는 Securities Transfer Corporation으로부터 교환 안내를 받게 됩니다.
Digital Ally (NASDAQ: DGLY), une entreprise spécialisée dans les produits d'enregistrement vidéo et de sécurité, a annoncé un fractionnement inversé d'actions au ratio de 1 pour 100 de ses actions ordinaires, effectif à partir du 23 mai 2025. Le fractionnement inversé a été approuvé par les actionnaires lors d'une assemblée spéciale le 6 mai 2025, le conseil d'administration ayant choisi le ratio maximal dans la plage approuvée de 1 pour 5 à 1 pour 100.
Après le fractionnement, le nombre d'actions en circulation diminuera de 166 849 183 à 1 668 492. Les actions seront négociées sous un nouveau numéro CUSIP : 25382T408. Les actionnaires détenant des actions sous forme dématérialisée ou dans des comptes de courtage n'ont aucune démarche à effectuer, tandis que ceux possédant des certificats physiques recevront des instructions d'échange de la Securities Transfer Corporation.
Digital Ally (NASDAQ: DGLY), ein Unternehmen, das sich auf Videoaufzeichnungs- und Sicherheitsprodukte spezialisiert hat, hat eine 1-zu-100 Reverse-Aktienzusammenlegung seiner Stammaktien angekündigt, die am 23. Mai 2025 wirksam wird. Die Reverse-Split wurde von den Aktionären auf einer außerordentlichen Versammlung am 6. Mai 2025 genehmigt, wobei der Vorstand das maximale Verhältnis aus dem genehmigten Bereich von 1-zu-5 bis 1-zu-100 gewählt hat.
Nach der Zusammenlegung wird die Anzahl der ausstehenden Aktien von 166.849.183 auf 1.668.492 reduziert. Die Aktien werden unter einer neuen CUSIP-Nummer gehandelt: 25382T408. Aktionäre, die ihre Aktien in Buchform oder über Brokerage-Konten halten, müssen nichts unternehmen, während Inhaber von physischen Zertifikaten Anweisungen zum Umtausch von der Securities Transfer Corporation erhalten.
- None.
- 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
Insights
Digital Ally's 1-for-100 reverse split signals serious financial distress and likely Nasdaq compliance issues.
Digital Ally's announcement of a 1-for-100 reverse stock split is a particularly drastic measure that raises significant red flags. This ratio sits at the absolute maximum end of the approved range (1-for-5 to 1-for-100), indicating management opted for the most extreme option available. Such severe consolidation typically occurs when a company's share price has declined dramatically and faces imminent delisting risk from Nasdaq's minimum bid requirements.
The reduction from 166,849,183 to just 1,668,492 outstanding shares will artificially increase the stock price proportionally but doesn't change the company's underlying fundamentals or market capitalization. What's concerning is both the timing and magnitude - reverse splits of this scale are rarely seen among healthy companies and often precede further equity deterioration.
While the press release doesn't explicitly state the reason, this split is almost certainly an attempt to regain compliance with Nasdaq's $1 minimum bid requirement. Companies implementing such extreme ratios frequently exhibit significant financial challenges, negative earnings trajectories, and dwindling cash reserves. The market typically views reverse splits of this magnitude as negative signals, often leading to renewed selling pressure after implementation.
Investor confidence will likely erode further as this drastic measure suggests management sees no organic path to share price recovery in the near term. While technically just a mathematical adjustment, the psychological and market perception impact shouldn't be underestimated - 1-for-100 splits are among the most extreme in the market and rarely occur without serious underlying issues.
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?
How many shares of DGLY will be outstanding after the reverse split?
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