Digital Ally Plunges 25% on Reverse Split Announcement

On May 6, 2025, Digital Ally's stock experienced a significant drop of 25% in pre-market trading, marking a notable decline in its share price.

Digital Ally recently announced a 1-for-20 reverse stock split, which is expected to take effect at the start of trading on May 7, 2025. This move was approved by the company's stockholders during their annual meeting in December 2024 and by the Board of Directors in April 2025. The reverse split aims to increase the stock price and potentially attract more investors by reducing the number of outstanding shares.

Additionally, Digital Ally has been actively engaged in raising capital through public offerings. The company recently priced a $15 million public offering, which contributed to the volatility in its stock price. This offering, along with previous capital-raising efforts, reflects the company's strategy to secure funding for its operations and growth initiatives.