Digital Ally, Inc. Terminates Merger Agreement with Clover Leaf Capital Corp. and Adopts Amendment to Bylaws

Digital Ally, Inc. (NASDAQ: DGLY) recently announced the termination of its Merger Agreement with Clover Leaf Capital Corp. The agreement, which was initially entered into on June 1, 2023, underwent termination effective November 7, 2024. This decision was made through a Mutual Termination and Release Agreement entered into by Digital Ally, Clover Leaf, and other involved parties.

Following the termination, the Merger Agreement is no longer in effect, except for specified provisions outlined in the Termination Agreement. The company disclosed this development in a Current Report on Form 8-K filed with the Securities and Exchange Commission, stating that certain provisions will continue in force in accordance with their terms.

In addition to the termination of the Merger Agreement, Digital Ally, Inc. also adopted an Amendment No. 1 to its Bylaws on November 6, 2024. The amendment, approved by the company’s board of directors, modifies the quorum requirement at stockholders’ meetings to thirty-three and one-third percent of the outstanding stock entitled to vote.

The company’s decision to terminate the Merger Agreement coincided with Clover Leaf Capital Corp. announcing its intention to liquidate following the dissolution of the agreement. Clover Leaf disclosed the termination in a press release dated November 8, 2024, stating that the decision to cancel its special meeting on November 8, 2024, was made in light of the terminated agreement with Digital Ally, Inc.

As part of the liquidation process, Clover Leaf Capital Corp. is expected to redeem all outstanding shares of Class A common stock sold as part of the units in its initial public offering. Additional information regarding the redemption process is anticipated to be provided by the company in the near future.

Both companies have not revealed any further details or intentions beyond the termination of the Merger Agreement and the subsequent liquidation announcement.

This news follows a series of events outlined in the filings with the Securities and Exchange Commission, demonstrating the evolving landscape for Digital Ally, Inc. and Clover Leaf Capital Corp. amidst changing business strategies and agreements.

Please note that this press release may contain forward-looking statements and that the companies involved are subject to various conditions, as noted in their filings with regulatory authorities. Information regarding ongoing developments and updates will be provided as necessary by the companies involved.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Digital Ally’s 8K filing here.

Digital Ally Company Profile

Digital Ally, Inc produces and sells digital video imaging, storage, and disinfectant and related safety products for use in law enforcement, security, and commercial applications in the United States. It operates through three segments: Video Solutions, Revenue Cycle Management, and Entertainment. The company offers in-car digital video mirror systems for law enforcement; in-car digital video event recorder systems for commercial fleets; a suite of data management web-based tools to assist fleet managers in the organization, archival, and management of videos and telematics information; body-worn digital video systems for law enforcement and private security; and VuLink ecosystem that provides intuitive auto-activation functionality as well as coordination between multiple recording devices.