Market Value of Listed Securities Exceeds $35 million at Closing for Ten Consecutive Trading Days
Digital Ally, Inc. (NASDAQ: DGLY) (the “Company”), which develops, manufactures and markets advanced video recording products for law enforcement, emergency management, fleet safety and security, today announced that on June 18, 2020 it received written notice from the Nasdaq Listing Qualifications Staff of the Nasdaq Stock Market LLC (“Nasdaq”) stating that the Company regained compliance with the applicable Nasdaq minimum Market Value of Listed Securities (the “MVLS”) continued listing requirement and the matter is now closed.
The Company had previously been notified by Nasdaq on July 11, 2019 that for the previous 30 consecutive business days, the minimum MVLS for its Common Stock was below the $35 million minimum MVLS requirement for continued listing on Nasdaq. In accordance with Nasdaq Listing Rules, the Company had 180 calendar days, or until January 7, 2020, to regain compliance with the MVLS Rule. To regain compliance with the MVLS Rule, the minimum MVLS for its Common Stock must have been at least $35 million for a minimum of 10 consecutive business days at any time during this 180-day period. Since the Company failed to regain compliance with such rule by January 7, 2020, the Company could have been delisted from Nasdaq. The Company received an opportunity to appeal Nasdaq’s determination via a hearing.
The hearing was held on February 20, 2020 at which time the Company provided the Panel with a plan to regain compliance with the minimum MLVS requirement under the MLVS Rule. On March 6, 2020, the Company received written notice from the Panel indicating that, based on the plan of compliance that the Company had presented at such hearing, the Panel granted its request for the continued listing of its Common Stock on Nasdaq, subject to the Company regaining compliance no later than June 30, 2020. Since the hearing the Company has raised capital, increasing its Shareholders Equity and, effective June 17, 2020, the Company had complied with the minimum $35 million MVLS for its Common Stock for 10 business days.
With the written notice received on June 18, 2020 from the Nasdaq stating that the Company had regained compliance with the applicable Nasdaq minimum MVLS continued listing requirement the matter is now closed.
About Digital Ally, Inc.
Digital Ally®, headquartered in Lenexa, KS, specializes in the design and manufacturing of the highest quality video recording equipment and video analytic software. Digital Ally pushes the boundaries of technology in industries such as law enforcement, emergency management, fleet safety and security. Digital Ally’s complete product solutions include vehicle and body cameras, flexible software storage, and automatic recording technology. These products work seamlessly together and are simple to install and operate. Digital Ally products are sold by domestic direct sales representatives and international distributors worldwide.
Stanton Ross, CEO
Tom Heckman, CFO
Digital Ally, Inc.
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: the Company’s ability to maintain compliance with the Nasdaq minimum bid price requirement; the Company’s ability to maintain compliance with the minimum Market Value of Listed Securities for our Common Stock; the decision of the United States Court of Appeals regarding the Company’s appeal of the District Court’s decision in the Axon litigation; whether the Company will ultimately prevail in its patent litigation against Axon; 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, 2019, and its Quarterly Report on Form 10-Q for the three months ended March 31, 2020, as filed with the Securities and Exchange Commission.