Business
Kustom Entertainment, Inc. Enters into Business Combination Agreement with Clover Leaf Capital Corp.
Transaction will provide Kustom Entertainment, Inc., a wholly-owned subsidiary of Digital Ally Inc. (NASDAQ: DGLY), the ability to be a stand-alone entity
About this update from Kustom Entertainment, Inc.
[{"type":"text","content":"Transaction will provide Kustom Entertainment, Inc., a wholly-owned subsidiary of Digital Ally Inc. (NASDAQ: DGLY), the ability to be a stand-alone entity with a focus and mission to own and produce events, festivals, and entertainment alongside its evolving primary and secondary ticketing technologies. Kustom Entertainment, Inc. is a wholly owned subsidiary of Digital Ally, Inc. and is comprised of TicketSmarter and Kustom 440, both currently wholly owned subsidiaries The transaction is expected to create a publicly traded entity focused on live event and concert production to accompany TicketSmarter’s ability to offer primary and secondary ticketing optionsThe transaction contemplates an equity value of $125 million for Kustom Entertainment, Inc.Combined company to have an implied initial pro forma equity value of approximately $222.2 million, with the proposed business combination expected to provide approximately $18.1 million in gross proceeds from the cash held in trust by Clover Leaf Capital Corp., assuming no redemptions and an $11.14 share price based on the value per redeemable share held in trust as of the date of this announcement KANSAS CITY, KS and MIAMI, FL, June 02, 2023 (GLOBE NEWSWIRE) -- Digital Ally, Inc. (NASDAQ: DGLY) (“Digital Ally”) and Clover Leaf Capital Corp. (Nasdaq: CLOE) (“CLOE”), a publicly traded special purpose acquisition company (SPAC), today announced that Kustom Entertainment, Inc. (“Kustom Entertainment”), a wholly-owned subsidiary of Digital Ally focused on live events, concert production and ticketing, and CLOE have entered into a merger agreement. The transaction is expected to provide Kustom Entertainment with the ability to be a stand-alone entity with a focus and mission to own and produce events, festivals, and entertainment alongside its evolving primary and secondary ticketing technologies. Digital Ally will remain an independent public company following the merger. 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 in 2023 and beyond. Kustom 440 and TicketSmarter will use their existing sponsorships and sports property partnerships to develop alternative entertainment opti...