OVERLAND PARK, KS--(Marketwire -08/16/12)- Digital Ally, Inc. (DGLY), which develops, manufactures and markets advanced digital technology products for law enforcement, homeland security and commercial security applications, today announced that it has filed a notice with The Nasdaq Stock Market stating that its Board of Directors has voted to effect a 1-for-8 reverse split of its issued and outstanding common stock. The reverse stock split will be effective August 24, 2012.
The Company is taking such action in order to comply with the minimum closing bid price requirement for continued listing on The Nasdaq Capital Market. In order to remain listed, the closing bid price of the Company's common stock must be $1.00 per share or higher for a minimum of ten consecutive business days prior to September 10, 2012, under applicable Nasdaq rules.
In September 2011, the Company received a notice from The Nasdaq Stock Market stating that the bid price of the Company's common stock had closed below $1.00 per share for the previous 30 consecutive business days. Nasdaq provided the Company with two successive 180-day compliance periods to meet the minimum bid requirement, but it has been unable to do so to date.
The reverse split will reduce the Company's issued and outstanding common stock from approximately 16,284,073 shares to approximately 2,035,509 shares. The number of authorized shares of common stock will be proportionally reduced from 75,000,000 to 9,375,000 shares. No fractional shares will be issued in connection with the reverse stock split. If, as a result of the reverse stock split, a stockholder would otherwise be entitled to a fractional share, the number of shares to be received by such stockholder will be rounded up to the next whole number.
About Digital Ally, Inc.
Digital Ally, Inc. develops, manufactures and markets advanced digital technology products for law enforcement, homeland security and commercial security applications. The Company's primary development focus involves the field of Digital Video Imaging and Storage. For additional information, visit www.digitalallyinc.com
The Company is headquartered in Overland Park, Kansas, and its shares are traded on The Nasdaq Capital Market under the symbol "DGLY".
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this press release. A wide variety of factors that may cause actual results to differ from the forward-looking statements include, but are not limited to, the following: whether the Company will regain compliance with the minimum closing bid requirement for continued listing on The Nasdaq Capital Market; whether the Company will be able to improve its revenues and operating results during the balance of 2012 given the current economic environment; whether the Company's new products will continue to generate an increasing portion of its total sales; competition from larger, more established companies with far greater economic and human resources; its ability to attract and retain customers and quality employees; the effect of changing economic conditions; and changes in government regulations, tax rates and similar matters. These cautionary statements should not be construed as exhaustive or as any admission as to the adequacy of the Company's disclosures. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", "projects", "should", or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. The Company does not undertake to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company and its operations are contained in its annual report on Form 10-K for the year ended December 31, 2011 and its report on Form 10-Q for the three and six months ended June 30, 2012 filed with the SEC.