8k today - DGLY repricing warrants
dropping the price shows a LACK of confidence this stock will go higher
hope the media does not get a hold of this information
3 lawsuits are taking way too long to resolve and being EXTENDED well into 2017, plus Roth issued guidance the other day showing massive EPS loses for the next year or more
On July 16, 2015 Digital Ally, Inc., a Nevada corporation (the “Company”), entered into a Securities Purchase Agreement (the “Purchase Agreement”) with two investors, pursuant to which the Company agreed to issue and sell, in an at-the-market registered direct offering (the “Offering”), an aggregate of 879,766 shares (the “Shares”) of common stock, par value $0.001 per share, of the Company (“Common Stock”) for gross proceeds of approximately $12.0 million. In the Offering the investors received a registered warrant (the Series A Warrant”) exercisable to purchase a total of 437,086 shares of common stock at a price of $13.43 per share for a term of 24 months from their date of issuance.
In a concurrent private placement (the “Private Placement”), the Company issued the investors additional warrants (the “Series B Warrants” and “Series C Warrants” and collectively with the Series A Warrants, the “2015 Warrants”). The Series B Warrants and Series C Warrants are exercisable to purchase a total of 222,738 and 879,766 shares of common stock, respectively, at a price of $13.43 per share. The Series B Warrants and Series C Warrants are exercisable for terms of 24 months and five and one-half years, respectively, from their dates of issuance. The Offering and the Private Placement closed on July 22, 2015.
On November 16, 2016, the Company and the holders of the 2015 Warrants entered into Amendment Agreements to the 2015 Warrants to reduce the exercise prices of the 2015 Warrants to $5.00 per share during the period from November 16, 2016 to November 30, 2016. The exercise price of the 2015 Warrants will return to $13.43 per share after such period.
In addition, the Company reduced the exercise price of those certain outstanding warrants issued by the Company on August 28, 2014 pursuant to a Securities Purchase Agreement, dated as of August 25, 2014, by and between the Company and the investor listed on the signature page attached thereto (the “2014 Warrants” and together with the 2015 Warrants, the “Warrants”), pursuant to the existing provisions of the 2014 Warrants to $5.00 per share during the period from November 16, 2016 to November 30, 2016. The exercise price of the 2014 Warrants will return to $7.32 per share after such period.
A holder of the Warrants will not have the right to exercise any portion of its Warrants if the holder, together with its affiliates, would beneficially own in excess of 4.99% or 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to such exercise (the “Beneficial Ownership Limitation”); provided, however, that upon 61 days’ prior notice to the Company, the holder may increase or decrease the Beneficial Ownership Limitation, but in no event shall the Beneficial Ownership Limitation exceed 9.99%.
AI
