Digital Ally Completes $12.0 Million At-the-Market Registered Direct Offering

LENEXA, KS--(Marketwired - Jul 22, 2015) - Digital Ally, Inc. (the "Company") (NASDAQ: DGLY) today announced that it has closed the previously announced $12.0 million offering of the Company's common stock and common stock purchase warrants in an at-the-market registered direct offering and a concurrent private placement of two series of common stock purchase warrants with two investors.

At the closing the Company sold an aggregate of 879,766 shares of its common stock at a per share price of $13.64 in a registered direct offering to the investors. The Company also issued registered short-term warrants to the investors exercisable to purchase a total of 437,086 shares of common stock in such offering. Additionally, in a concurrent private placement, the Company issued to the investors short-term warrants exercisable to purchase a total of 222,738 shares of common stock and long-term warrants exercisable to purchase a total of 879,766 shares of common stock. Both the short-term registered and private placement warrants are immediately exercisable, have an exercise price of $13.43 per share and expire 24 months from the date of issuance. The long-term warrants are immediately exercisable, have an exercise price of $13.43 per share and expire five and a half years from the date of issuance. 

After placement agent fees and other estimated offering expenses, the net offering proceeds to Digital Ally total approximately $11.2 million prior to any exercise of the warrants. The warrants issued in this transaction do not contain terms that would require the Company to record derivative warrant liabilities that could affect the Company's financial statements.

"This financing package represents a significant step in the long-term development of the Company," stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "These new funds substantially improve our balance sheet and allow us to present a stronger financial position to our customers. In addition, the offering proceeds provide the funding necessary to further develop and service our law enforcement and commercial fleet business channels and to explore other channels that may benefit from our core expertise in digital audio and video recording." 

WestPark Capital, Inc. acted as sole placement agent in connection with the registered direct offering and concurrent private placement.

The registered direct offering was conducted under a shelf registration statement (File No. 333-202944), including a base prospectus previously filed with the Securities and Exchange Commission (the "SEC") and declared effective on May 18, 2015. The prospectus supplement relating to the registered direct offering was filed by the Company with the SEC on July 20, 2015. Copies of the prospectus supplement, together with the accompanying prospectus, can be obtained at the SEC's website at http://www.sec.gov, from request at WestPark Capital, Inc., 1900 Avenue of the Stars, Suite 310, Los Angeles, CA 90067, or from Digital Ally, Inc., 9705 Loiret Blvd., Lenexa, KS 66219, Attention: Stanton E. Ross, CEO.

About Digital Ally, Inc.

Digital Ally, Inc. develops, manufactures and markets advanced technology products for law enforcement, homeland security and commercial applications. The Company's primary focus is digital video imaging and storage. For additional information, visit www.digitalallyinc.com.

The Company is headquartered in Lenexa, Kansas, and its shares are traded on The NASDAQ Capital Market under the symbol "DGLY".

Additional Information

Statements made in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, but not limited to, our ability to further develop our law enforcement and commercial fleet channels with part of the proceeds from the registered direct offering; and our ability to apply such proceeds to exploit other commercial channels in our digital audio and video core expertise. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "should," "expect," "anticipate," "estimate," "continue," or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate, and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading "Forward-Looking Statements" and "Risk Factors" in the Company's Annual Reports on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.