Digital Ally shares surge 11.65% premarket after completing $250,000 convertible note financing with 7% discount and 8% interest, securing senior secured terms.

Digital Ally (NASDAQ:DGLY) surged 11.65% in premarket trading following the completion of a $250,000 senior secured convertible note financing with a 7% original issue discount and 8% interest. The transaction, secured by substantially all company assets and accompanied by warrants for 147,128 shares at $2.124, was approved by shareholders during an annual meeting, signaling operational continuity amid a heavily leveraged balance sheet. The financing, though costly, provided immediate liquidity for the company, which trades near its 52-week low and faces significant debt and negative EBITDA. The market likely interpreted the successful capital raise and shareholder approvals as mitigating short-term financial risks, despite concerns over dilution and high borrowing costs.