Digital Ally Ascends 25% On Merger Of Its Unit Kustom Entertainment

(RTTNews) - Shares of Digital Ally, Inc. (DGLY) are rising more than 25% Friday morning on the news of merger agreement between Kustom Entertainment, Inc., a unit of Digital Ally focused on live events, concert production and ticketing, and Clover Leaf Capital Corp. (CLOE).

The transaction is expected to create a new publicly traded company with a focus to own and produce events, festivals, and entertainment alongside its primary and secondary ticketing technologies.

The combined company, to be known as Kustom Entertainment, is expected to have an implied initial pro forma equity value of about $222.2 million, with the proposed business combination expected to provide approximately $18.1 million of proceeds from the cash held in trust by CLOE, assuming no redemptions.

Additionally, Digital Ally will distribute to its shareholders 15% of the shares obtained in Kustom Entertainment.

DGLY, currently at $5.00, has traded in the range of $3.09 - $22.20 in the last 52 weeks.