Item 8.01 Other Events.
As previously disclosed on the Current Report on Form 8-K, filed by Digital
Ally, Inc. (the "Company") on June 4, 2020, the Company consummated an
underwritten public offering (the "Offering") of 3,090,909 shares (the "Firm
Shares") of common stock, par value $0.001 per share, of the Company (the
"Common Stock"). The Offering was conducted pursuant to an underwriting
agreement, dated June 2, 2020 (the "Underwriting Agreement"), between the
Company and Aegis Capital Corp., as representative of the underwriters (the
"Underwriters"). The Firm Shares were sold at a public offering price of $1.65
per share. Pursuant to the Underwriting Agreement, the Company granted the
Underwriters a forty-five (45)-day option to purchase up to an additional
463,636 shares of Common Stock at the public offering price, less underwriting
discounts and commissions, to cover over-allotments, if any (the "Option Shares"
and together with the Firm Shares, the "Shares").
The Offering of the Shares were registered pursuant to the Company's effective
shelf registration statement on Form S-3 (File No. 333-225227) (the
"Registration Statement"), which was initially filed with the U.S. Securities
and Exchange Commission on May 25, 2018, and was declared effective on June 6,
2018, and the related base prospectus included in the Registration Statement, as
supplemented by the prospectus supplement dated June 2, 2020 (the "Prospectus
Supplement").
On June 8, 2020, the Underwriters fully exercised their over-allotment option to
acquire the Option Shares at $1.65 per share, and the offering of the Option
Shares closed on June 8, 2020. The exercise of such over-allotment option
resulted in additional gross proceeds, before deducting underwriting discounts
and commissions and other estimated Offering expenses, of $764,999.40, which the
Company intends to use for general corporate purposes, including for compliance
with certain Nasdaq continued listing requirements and continued investments in
the Company's commercialization efforts.
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