Digital Ally, subsidiary Kustom Entertainment and Clover Leaf Capital entered into an amendment to the lock-up agreement as part of their proposed merger.
The original lock-up agreement in June called for Digital Ally to immediately distribute 15% of all securities received as merger consideration in the merger at the closing. Under the amended lock-up, Digital Ally will now immediately distribute 20% of all securities received as merger consideration, with the remaining 80% being subject to the 6-month lock-up period.
As announced in June, the combined company is expected to have an implied initial pro forma equity value of approximately $222.2 million, with the proposed business combination expected to provide the $18.1 million remaining in the SPAC’s trust, assuming no further redemptions.
Kustom Entertainment is focused on live events, concert production and ticketing.
Digital Ally will remain an independent public company following the merger. Read more.
