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DIGITAL ALLY INC FILES (8-K) Disclosing Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

July 11, 2014



Item 1.01. Entry Into a Material Definitive Agreement.

On March 21, 2014, Digital Ally, Inc. (the "Company") entered into definitive agreements relating to a private placement (the "Private Placement") of a $2.0 million principal amount Senior Secured Convertible Note due on March 24, 2016 (the "Note"). The closing of the Private Placement occurred on March 24, 2014. The Note is convertible at any time at the option of the holder into shares of the Company's common stock at $8.55 per share (the "Conversion Price"). On July 10, 2014 the Company and the holder of the Note entered into a Voluntary Adjustment and Consent Agreement under which they agreed to reduce the Conversion Price of the Note to $6.25 per share during the period from July 11 to July 14, 2014. The Company entered into this Agreement due the recent liquidity in the market for its common stock and to encourage the holder to convert the Note into equity. Such conversion would help to improve the Company's working capital and reduce its indebtedness.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information included in Item 1.01 of this Form 8-K is hereby incorporated by reference into this Item 2.03.


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Source: Edgar Glimpses


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