Kustom Entertainment, A Wholly-Owned Subsidiary Of Digital Ally, Enters Into Business Combination Agreement With Clover Leaf Capital Corp.; The Transaction Contemplates An Equity Value Of $125M For Kustom Entertainment
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Transaction will provide Kustom Entertainment, Inc., a wholly-owned subsidiary of Digital Ally Inc. (NASDAQ:DGLY), the ability to be a stand-alone entity with a focus and mission to own and produce events, festivals, and entertainment alongside its evolving primary and secondary ticketing technologies.
- Kustom Entertainment, Inc. is a wholly owned subsidiary of Digital Ally, Inc. and is comprised of TicketSmarter and Kustom 440, both currently wholly owned subsidiaries
- The transaction is expected to create a publicly traded entity focused on live event and concert production to accompany TicketSmarter's ability to offer primary and secondary ticketing options
- The transaction contemplates an equity value of $125 million for Kustom Entertainment, Inc.
- Combined company to have an implied initial pro forma equity value of approximately $222.2 million, with the proposed business combination expected to provide approximately $18.1 million in gross proceeds from the cash held in trust by Clover Leaf Capital Corp., assuming no redemptions and an $11.14 share price based on the value per redeemable share held in trust as of the date of this announcement