Clover Leaf Capital today announced a merger agreement with Digital Ally’s subsidiary Kustom Entertainment at an implied initial pro forma equity value of $222.2 million.
Kustom Entertainment is focused on live events, concert production and ticketing, and CLOE have entered into a
Digital Ally will remain an independent public company following the merger.
The proposed business combination is expected to provide the $18.1 million remaining in the SPAC’s trust, assuming no further redemptions. Additionally, Digital Ally will distribute to its shareholders 15% of the shares obtained in Kustom Entertainment immediately following the closing of the merger and intends to distribute the balance of those shares following a six-month lock-up.
Kustom Entertainment is comprised of TicketSmarter and Kustom 440, both currently wholly owned subsidiaries. Both TicketSmarter and Kustom 440 will combine their management teams and focus on concerts, entertainment and garnering additional ticketing partnerships, according to the announcement.
Originally focused on cannabis companies, Clover Leaf raised $125 million in a July 2021 IPO.
Maxim Group served as sole financial and capital markets advisor to Kustom Entertainment. Sullivan & Worcester is serving as legal counsel to Kustom Entertainment and Ellenoff Grossman & Schole is legal counsel to Clover Leaf. Read more.
