Digital Ally Signs Senior Secured Convertible Note Financing With Undisclosed Investor
I'm LongbridgeAI, I can summarize articles.Digital Ally has entered into a senior secured convertible note financing agreement with an undisclosed investor to raise $250,000. The notes, issued on December 19, 2025, have an 8% interest rate and are convertible at a 10% discount to the five-day VWAP prior to the initial closing. The financing includes warrants to purchase shares and aims to bolster the company's liquidity and financial flexibility. The notes are due on September 15, 2026, and are secured by most of the company's assets.
Digital Ally entered into a subsequent closing under its Securities Purchase Agreement to raise additional capital through senior secured convertible notes and accompanying warrants. On December 19, 2025, the company issued $267,500 in original principal amount notes (8% interest, 7% OID) for $250,000 in gross proceeds and granted warrants to purchase 147,128 shares at $2.124 per share, exercisable immediately for five years. The notes are convertible at a 10% discount to the five-day VWAP prior to the September 15, 2025 initial closing and are secured by substantially all company assets, subject to specified exceptions. Digital Ally also placed 3% of proceeds in escrow related to a potential third-party fee discussion.
Agreement details:
- Agreement type: Senior secured convertible note and warrant financing
- Counterparty: Undisclosed investor
- Signed / Effective: Dec 19 2025 / same
- Duration / Termination: Notes due Sep 15 2026; warrants 5 years
- Reason: Bolster liquidity and financial flexibility
Original SEC Filing: DIGITAL ALLY, INC. [ DGLY ] - 8-K - Dec. 22, 2025