Kustom Entertainment Inc. And Clover Leaf Capital Corp. Amend The Lock-Up Agreement In Their Proposed Business Combination
Portfolio Pulse from Benzinga Newsdesk
Digital Ally, Inc. and Clover Leaf Capital Corp. have amended their Lock-Up Agreement in relation to their proposed business combination, increasing the immediate distribution of securities to Digital Ally shareholders from 15% to 20% at closing. The combined company, Kustom Entertainment, will have an equity value of $125 million and an implied pro forma equity value of $222.2 million. The merger is expected to provide $14 million in gross proceeds, assuming no redemptions. Kustom Entertainment will include TicketSmarter and Kustom 440, focusing on concerts and ticketing partnerships.
December 12, 2023 | 1:41 pm
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Clover Leaf Capital Corp. has amended the Lock-Up Agreement with Digital Ally, which may affect the short-term performance of CLOE's stock as the merger progresses towards completion.
The amendment of the Lock-Up Agreement and the progress towards the merger completion could be seen as positive developments for CLOE, potentially leading to a short-term increase in its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Digital Ally will distribute 20% of securities received from the merger to shareholders immediately, an increase from the previously agreed 15%. The company is part of the proposed business combination with an equity value of $125 million.
The increase in immediate distribution of securities from 15% to 20% is likely to be viewed positively by shareholders, as it provides greater immediate value. This could lead to a short-term positive impact on DGLY's stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90