Why Digital Ally Shares Are Soaring Today
$CLOE
$DGLY
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- Kustom Entertainment, Inc., a wholly-owned subsidiary of Digital Ally Inc. (NASDAQ:DGLY), has entered into a merger agreement with SPAC Clover Leaf Capital Corp. (NASDAQ: CLOE).
- The agreement is for a $125 million equity value for Kustom Entertainment, Inc, which includes TicketSmarter and Kustom 440. Digital Ally will remain an independent public company following the merger.
- The transaction is expected to create a publicly traded entity focused on live events and concert production to accompany TicketSmarter's ability to offer primary and secondary ticketing options.
- Also Read: Digital Ally Clocks 25% Decline In Q1 Revenues On Weakness In Entertainment Segment
- The proposed business combination is estimated to generate about $18.1 million in gross proceeds from the cash held in trust by Clover Leaf Capital, giving the combined company an indicated initial pro forma equity value of roughly $222.2 million.
- The combined firm will be named Kustom Entertainment and overseen by Stanton E. Ross, the current CEO of Digital Ally.
- Furthermore, Digital Ally will deliver to its shareholders 15% of the shares gained in Kustom Entertainment immediately following the merger's closure, with the remainder to be distributed after a six-month lock-up period.
- Price Action: DGLY shares are trading higher by 17.8% at $4.68 on the last check Friday.