Digital Ally surges on entertainment unit's SPAC deal

Clover Leaf Capital

02/06/2023 17:09

** Digital Ally Inc's  DGLY.O  shares surge as much as 45.5%
to $5.79, nearly 4-mth high, after subsidiary enters into
business combination with special-purpose acquisition company
(SPAC)
    ** DGLY last up 18.5% at $4.71; trading volume of nearly 1.5
mln shares compares to stock's 25-DMA of just about 10k, per
Refinitiv
    ** Kustom Entertainment Inc to merge with Clover Leaf
Capital Corp  CLOE.O  to create publicly traded entity focused
on live event and concert production alongside ticketing
technologies
    ** Combined co to have implied equity value of approx $222
mln, expected to provide $18 mln in proceeds held by Clover,
assuming no shareholder redemptions
    ** DGLY to distribute to its shareholders 15% of shares
obtained in Kustom immediately following closing of the merger
    ** In Dec, its board approved plan to separate into two
independent, publicly traded firms, with the video
solutions/medical billing businesses to keep Digital Ally name
    ** With move on Fri, DGLY has lost nearly 75% over the past
year
    ** CLOE's stock flat on the session at $11.34

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))