Company: DGLY
Filing Date: 2025-03-04
Form Type: DEF 14A
Source: 0001493152-25-008945
Chunk: 29

Company: DIGITAL ALLY, INC.
Filing Date: 2025-03-04
Form: DEF 14A
Chunk 29
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 effect to the exercise, as such percentage ownership is determined in accordance with the terms of the Warrants. However, any holder may increase or decrease such percentage to any other percentage not in excess of 9.99%, upon at least 61 days’ prior notice from the holder to us with respect to any increase in such percentage.

Exercise Price. The Series A Warrants will be exercisable upon Warrant Stockholder Approval, have an initial exercise price of $0.1875 per share, subject to certain anti-dilution and share combination event protections, as further set forth below, and have a term of 5 years from the Warrant Stockholder Approval Date.

The Series B Warrants will be exercisable commencing upon the Warrant Stockholder Approval Date, will have an initial exercise price of $0.30 per share, subject to certain anti-dilution and share combination event protections, as further set forth below, and will have a term of two and one-half years from the Warrant Stockholder Approval Date.

Pursuant to Section 3.3 of the Series A Warrant and Section 3.2 of the Series B Warrant, on the trading day after the Reset Period (defined below) (the “Reset Date”), the exercise price of the Warrants will be reset to a price equal to the lower of (i) the exercise price then in effect and (ii) the greater of (a) the lowest daily volume weighted average price (“VWAP”) during the period commencing two full trading days prior to the Warrant Stockholder Approval and ending following the close of trading on the 10th trading day after public notice of the Warrant Stockholder Approval (the “Reset Period”), and (b) the floor price set forth in the Warrants, and the number of shares issuable upon exercise will be increased such that the aggregate exercise price of the Warrants on the issuance date for the shares of common stock underlying the Warrants then outstanding shall remain unchanged. In addition, following a reverse stock split, the exercise price of the Warrants will be adjusted to equal the lowest single-day VWAP during the period from the trading day immediately following, until the fifth trading day following the reverse stock split, with a proportionate adjustment to the number of shares underlying the Warrants such that the aggregate price will remain unchanged.

Adjustment for Subsequent Issuances.Additionally, upon the Company’s issuance of common stock or common stock equivalents at a price per share that is less than the exercise