Digital Ally Announces Reverse Stock Split

Rhea-AI Summary

Digital Ally (NASDAQ: DGLY), a company specializing in video recording and safety products for law enforcement and other industries, has announced a 1-for-20 reverse stock split. The split was approved by stockholders at the Annual Meeting on December 17, 2024, with the Board of Directors finalizing the decision on April 10, 2025.

The Common Stock will begin trading on a split-adjusted basis on the Nasdaq Capital Market starting May 7, 2025, under a new CUSIP number (25382T309). While stockholders holding shares in book-entry form or brokerage accounts require no action, those with stock certificates will receive exchange instructions from Securities Transfer Corporation.

Positive

• The reverse split could help maintain Nasdaq listing requirements
• May improve stock marketability and attract institutional investors

Negative

• Significant 1-for-20 reduction in number of outstanding shares indicates potential concerns about low share price
• No guarantee the stock price will maintain proportionally adjusted levels post-split

Lenexa, KS, May 05, 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-20 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 the Nasdaq Capital Market (“Nasdaq”) on a split-adjusted basis at the start of trading on May 7, 2025 and will have a new CUSIP number of 25382T309.

At the Company's annual meeting of stockholders (the "Annual Meeting") held on December 17, 2024, the Company’s stockholders approved a proposal to amend the Company’s Amended and Restated Certificate of Incorporation to effect a reverse stock split of its common stock at a ratio within the range of 1-for-5 to 1-for-20, as determined by the Company's Board of Directors. On April 10, 2025, the Company’s Board of Directors approved the 1-for-20 Reverse Stock Split.

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, human & animal health protection products, healthcare revenue cycle management, ticket brokering and marketing, event production and jet chartering. 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 (DGLY) reverse stock split announced in May 2025?

Digital Ally announced a 1-for-20 reverse stock split, meaning every 20 shares will be combined into 1 share.

When will DGLY's reverse stock split take effect?

Digital Ally's reverse stock split will begin trading on a split-adjusted basis on the Nasdaq Capital Market on May 7, 2025.

Do DGLY shareholders need to take any action for the reverse split?

Only shareholders who hold stock certificates need to take action. Those who hold shares in book-entry form or brokerage accounts ('street name') are not required to take any action.

What is Digital Ally's new CUSIP number after the reverse split?

Digital Ally's new CUSIP number following the reverse stock split will be 25382T309.

When did DGLY shareholders approve the reverse stock split?

Digital Ally shareholders approved the reverse stock split at the Annual Meeting held on December 17, 2024, allowing for a ratio range of 1-for-5 to 1-for-20.