Kustom Entertainment, Inc. and Clover Leaf Capital Corp. Announce Effectiveness of Registration Statement as Digital Ally Announces Record Date for Distribution
Kustom Entertainment, a subsidiary of Digital Ally (NASDAQ: DGLY), announced that Clover Leaf Capital Corp.'s registration statement for their proposed business combination has been declared effective by the SEC. The special meeting to approve the merger is scheduled for August 20, 2024. The combined company, valued at $125 million, will be known as Kustom Entertainment with an implied initial pro forma equity value of $222.2 million.
Digital Ally will distribute 30% of its Kustom Entertainment shares to shareholders immediately after the merger closes, with the remaining shares to be distributed following a six-month lock-up period. The initial distribution will be made to Digital Ally stockholders of record as of August 12, 2024. The merger aims to create a premier live event marketing and concert production company under the current management team led by CEO Stanton E. Ross.
Kustom Entertainment, una filiale di Digital Ally (NASDAQ: DGLY), ha annunciato che la dichiarazione di registrazione di Clover Leaf Capital Corp. per la loro proposta di fusione è stata dichiarata efficace dalla SEC. La riunione speciale per approvare la fusione è prevista per il 20 agosto 2024. La società combinata, valutata 125 milioni di dollari, sarà conosciuta come Kustom Entertainment con un valore iniziale pro forma del capitale proprio di 222,2 milioni di dollari.
Digital Ally distribuirà il 30% delle sue azioni di Kustom Entertainment agli azionisti immediatamente dopo la chiusura della fusione, mentre le azioni rimanenti saranno distribuite al termine di un periodo di lock-up di sei mesi. La distribuzione iniziale sarà fatta agli azionisti di Digital Ally registrati al 12 agosto 2024. La fusione mira a creare una società leader nel marketing di eventi dal vivo e nella produzione di concerti sotto l'attuale team di gestione guidato dal CEO Stanton E. Ross.
Kustom Entertainment, una subsidiaria de Digital Ally (NASDAQ: DGLY), anunció que la declaración de registro de Clover Leaf Capital Corp. para su propuesta de fusión ha sido declarada efectiva por la SEC. La reunión especial para aprobar la fusión está programada para el 20 de agosto de 2024. La compañía combinada, valorada en 125 millones de dólares, se conocerá como Kustom Entertainment con un valor inicial pro forma de capital propio de 222,2 millones de dólares.
Digital Ally distribuirá el 30% de sus acciones de Kustom Entertainment a los accionistas inmediatamente después de que se cierre la fusión, y las acciones restantes se distribuirán después de un período de lock-up de seis meses. La distribución inicial se llevará a cabo para los accionistas de Digital Ally registrados hasta el 12 de agosto de 2024. La fusión tiene como objetivo crear una empresa líder en marketing de eventos en vivo y producción de conciertos bajo el actual equipo de gestión dirigido por el CEO Stanton E. Ross.
Kustom Entertainment은 Digital Ally (NASDAQ: DGLY)의 자회사로 Clover Leaf Capital Corp.의 제안된 사업 결합에 대한 등록 서류가 SEC에 의해 유효하다고 선언되었음을 발표했습니다. 합병 승인을 위한 특별 회의는 2024년 8월 20일로 예정되어 있습니다. 합병된 회사는 1억 2500만 달러의 가치가 있으며 Kustom Entertainment로 알려질 것입니다와 암시된 초기 프로포르마 자본 가치가 2억 2220만 달러입니다.
Digital Ally는 합병이 마무리된 직후 Kustom Entertainment의 주식 30%를 주주에게 분배하고, 나머지 주식은 6개월의 잠금 기간 이후에 분배할 것입니다. 초기 분배는 2024년 8월 12일 기준의 Digital Ally 주주에게 이루어질 것입니다. 이번 합병의 목표는 CEO Stanton E. Ross가 이끄는 현재의 관리팀 아래에서 주요 라이브 이벤트 마케팅 및 콘서트 프로덕션 회사를 만드는 것입니다.
Kustom Entertainment, une filiale de Digital Ally (NASDAQ: DGLY), a annoncé que la déclaration d'enregistrement de Clover Leaf Capital Corp. concernant leur projet de fusion a été déclarée effective par la SEC. La réunion spéciale pour approuver la fusion est programmée pour le 20 août 2024. La société combinée, évaluée à 125 millions de dollars, sera connue sous le nom de Kustom Entertainment avec une valeur initiale pro forma implicite de 222,2 millions de dollars.
Digital Ally distribuera 30 % de ses actions de Kustom Entertainment aux actionnaires immédiatement après la clôture de la fusion, les actions restantes étant distribuées après une période de verrouillage de six mois. La distribution initiale sera faite aux actionnaires de Digital Ally qui étaient enregistrés au 12 août 2024. La fusion vise à créer une entreprise de premier plan dans le marketing d'événements en direct et la production de concerts sous l'équipe de direction actuelle dirigée par le PDG Stanton E. Ross.
Kustom Entertainment, eine Tochtergesellschaft von Digital Ally (NASDAQ: DGLY), gab bekannt, dass die Registrierungserklärung von Clover Leaf Capital Corp. für ihre vorgeschlagene Unternehmenszusammenlegung von der SEC genehmigt wurde. Die Sonderversammlung zur Genehmigung der Fusion ist für den 20. August 2024 angesetzt. Das kombinierte Unternehmen, das mit 125 Millionen US-Dollar bewertet wird, wird als Kustom Entertainment bekannt sein, mit einem impliziten anfänglichen pro forma Eigenkapitalwert von 222,2 Millionen US-Dollar.
Digital Ally wird 30 % seiner Kustom Entertainment-Anteile sofort nach dem Abschluss der Fusion an die Aktionäre verteilen, wobei die verbleibenden Anteile nach einer sechsmonatigen Sperrfrist verteilt werden. Die erste Verteilung erfolgt an die Aktionäre von Digital Ally, die am 12. August 2024 registriert sind. Ziel der Fusion ist es, ein führendes Unternehmen für Live-Event-Marketing und Konzertproduktion unter dem derzeitigen Managementteam unter der Leitung von CEO Stanton E. Ross zu schaffen.
- Merger transaction values Kustom Entertainment at $125 million
- Combined company expected to have an implied initial pro forma equity value of $222.2 million
- Digital Ally shareholders to receive 30% of Kustom Entertainment shares immediately after merger closing
- Remaining Kustom Entertainment shares subject to a six-month lock-up period before distribution
Insights
The announcement of the SEC's approval for Clover Leaf Capital Corp.'s S-4 registration statement marks a significant milestone in the proposed business combination with Kustom Entertainment. This merger, valuing Kustom at
The distribution of shares to Digital Ally shareholders is a key aspect to watch. The immediate
Investors should carefully evaluate the growth prospects and synergies of the combined entity, especially given Kustom Entertainment's focus on live event marketing and concert production in a post-pandemic landscape.
The merger between Kustom Entertainment and Clover Leaf Capital Corp. represents a strategic move in the entertainment industry. As a live event marketing and concert production company, Kustom is positioning itself for growth in a sector that's rebounding post-COVID.
The implied valuation of
The retention of current management, led by Stanton E. Ross, provides continuity but also warrants scrutiny of their track record in navigating industry challenges. Investors should monitor key performance indicators post-merger to gauge the success of this combination in a competitive and evolving market landscape.
KANSAS CITY, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Digital Ally, Inc. (Nasdaq: DGLY) – Kustom Entertainment, Inc. (“Kustom Entertainment”), a premier live event marketing and concert production company and current subsidiary of Digital Ally Inc. (“Digital Ally”), today announced that Clover Leaf Capital Corp.’s (“Clover Leaf”) registration statement on Form S-4 has been declared effective by the U.S. Securities and Exchange Commission (the “SEC”) as of Tuesday, July 30, 2024, relating to the previously announced proposed business combination by and among Clover Leaf, Kustom Entertainment, Inc. and CL Merger Sub, Inc.
Clover Leaf has mailed the definitive proxy statement/prospectus (the “Proxy Statement”) to stockholders of record as of the close of business on July 24, 2024. The Proxy Statement contains information and a proxy card relating to the special meeting of Clover Leaf’s stockholders (the “Special Meeting”).
The Special Meeting to approve the proposed business combination is scheduled on August 20, 2024 at 10:00 a.m. Eastern Time via a virtual meeting format at www.cstproxy.com/cloverlcc/bc2024.
The combined company will be known as Kustom Entertainment and will operate under the same management team, led by Stanton E. Ross, the current CEO. The transaction contemplates an equity value of
About Kustom Entertainment, Inc.
Kustom Entertainment, Inc., a recently formed wholly-owned subsidiary of Digital Ally, will provide oversight to currently wholly-owned subsidiaries TicketSmarter, Kustom 440, and BirdVu Jets.
TicketSmarter offers tickets to more than 125,000 live events ranging from concerts to sports and theatre shows. TicketSmarter is the official ticket resale partner of over 35 collegiate conferences, over 300 universities, and hundreds of events and venues nationally. TicketSmarter is a primary and secondary ticketing solution for events and high-profile venues across North America. For more information on TicketSmarter, visit www.Ticketsmarter.com.
Established in late 2022, Kustom 440 is an entertainment division of Kustom Entertainment, Inc., whose mission it is to attract, manage and promote concerts, sports and private events. Kustom 440 is unique in that it brings a primary and secondary ticketing platform, in addition to its well-established relationships with artists, venues, and municipalities. For more information on Kustom 440, visit www.Kustom440.com.
Kustom Entertainment operates through its wholly-owned subsidiaries TicketSmarter, Inc. (“TicketSmarter”), Kustom 440, Inc. (“Kustom 440”), and BirdVu Jets, Inc. (“BirdVu Jets”). Following the closing of the Business Combination, TicketSmarter, Kustom 440, and BirdVu Jets will combine their management teams and focus on concerts, entertainment and garnering additional ticketing partnerships, as well as using existing sponsorships and sports property partnerships to develop alternative entertainment options for consumers.
About Clover Leaf Capital Corp.
Clover Leaf Capital Corp. is a newly organized blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.
For more information, contact:
Stanton E. Ross, CEO
Info@kustoment.com
Info@cloverlcc.com
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1955. These forward-looking statements include, without limitation, CLOE’s and Kustom Entertainment’s expectations with respect to the proposed business combination between CLOE and Kustom Entertainment, including statements regarding the benefits of the transaction, the anticipated timing of the transaction, the implied valuation of Kustom Entertainment, the products offered by Kustom Entertainment and the markets in which it operates, and Kustom Entertainment’s projected future results. Words such as “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside CLOE’s and Kustom Entertainment’s control and are difficult to predict. Factors that may cause actual future events to differ materially from the expected results, include, but are not limited to: (i) the risk that the transaction may not be completed in a timely manner or at all, which may adversely affect the price of CLOE’s securities, (ii) the risk that the transaction may not be completed by CLOE’s business combination deadline, even if extended by its stockholders, (iii) and the potential failure to obtain an extension of the business combination deadline if sought by Clover Leaf; (iv) the failure to satisfy the conditions to the consummation of the transaction, including the adoption of the agreement and plan of merger (“Merger Agreement”) by the stockholders of CLOE, (v) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement, (vi) the failure to obtain any applicable regulatory approvals required to consummate the business combination; (vii) the receipt of an unsolicited offer from another party for an alternative transaction that could interfere with the business combination, (viii) the effect of the announcement or pendency of the transaction on Kustom Entertainment’s business relationships, performance, and business generally, (ix) the inability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition and the ability of the post-combination company to grow and manage growth profitability and retain its key employees, (x) costs related to the business combination, (xi) the outcome of any legal proceedings that may be instituted against Kustom Entertainment or CLOE following the announcement of the proposed business combination, (xii) the ability to maintain the listing of CLOE’s securities on the Nasdaq prior to the business combination, (xiii) the ability to implement business plans, forecasts, and other expectations after the completion of the proposed business combination, and identify and realize additional opportunities, (xiv) the risk of downturns and the possibility of rapid change in the highly competitive industry in which Kustom Entertainment operates, (xv) the risk that demand for Kustom Entertainment’s services may be decreased due to a decrease in the number of large-scale sporting events, concerts and theater shows, (xvi) the risk that any adverse changes in Kustom Entertainment’s relationships with buyer, sellers and distribution partners may adversely affect the business, financial condition and results of operations, (xvii) the risk that Changes in Internet search engine algorithms and dynamics, or search engine disintermediation, or changes in marketplace rules could have a negative impact on traffic for Kustom Entertainment’s sites and ultimately, its business and results of operations; (xviii) the risk that any decrease in the willingness of artists, teams and promoters to continue to support the secondary ticket market may result in decreased demand for Kustom Entertainment’s services; (xix) the risk that Kustom Entertainment is not able to maintain and enhance its brand and reputation in its marketplace, adversely affecting Kustom Entertainment’s business, financial condition and results of operations, (xx) the risk of the occurrence of extraordinary events, such as terrorist attacks, disease epidemics or pandemics, severe weather events and natural disasters, (xxi) the risk that because Kustom Entertainment’s operations are seasonal and its results of operations vary from quarter to quarter and year over year, its financial performance in certain financial quarters or years may not be indicative of, or comparable to, Kustom Entertainment’s financial performance in subsequent financial quarters or years; (xxii) the risk that periods of rapid growth and expansion could place a significant strain on Kustom Entertainment’s resources, including its employee base, which could negatively impact Kustom Entertainment’s operating results; (xxiii) the risk that Kustom Entertainment may never achieve or sustain profitability; (xxiv) the risk that Kustom Entertainment may need to raise additional capital to execute its business plan, which many not be available on acceptable terms or at all; (xxv) the risk that third-parties suppliers and manufacturers are not able to fully and timely meet their obligations, (xxvi) the risk that Kustom Entertainment is unable to secure or protect its intellectual property, (xxvii) the risk that the post-combination company’s securities will not be approved for listing on Nasdaq or if approved, maintain the listing and (xxviii) other risks and uncertainties indicated from time to time in the proxy statement and/or prospectus relating to the business combination, including those under the “Risk Factors” section therein and in CLOE’s other filings with the SEC. The foregoing list of factors is not exhaustive. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Kustom Entertainment and CLOE assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Important Information and Where to Find It
In connection with the transaction, CLOE has filed the Registration Statement with the SEC, which includes a proxy statement to be distributed to holders of CLOE’s common stock in connection with CLOE’s solicitation of proxies for the vote by CLOE’s stockholders with respect to the transaction and other matters as described in the Registration Statement, as well as a prospectus relating to the offer of the securities to be issued to Kustom Entertainment’s stockholder in connection with the transaction. Before making any voting or investment decision, investors and security holders and other interested parties are urged to read the Registration Statement, any amendments thereto and any other documents filed with the SEC carefully and in their entirety because they contain important information about CLOE, Kustom Entertainment and the transaction. Investors and security holders may obtain free copies of the proxy statement/prospectus and other documents filed with the SEC by CLOE through the website maintained by the SEC at http://www.sec.gov, or by directing a request to: 1450 Brickell Avenue, Suite 2520, Miami, FL 33131.
Participants in Solicitation
CLOE and Kustom Entertainment and their respective directors and certain of their respective executive officers and other members of management and employees may be considered participants in the solicitation of proxies with respect to the transaction. Information about the directors and executive officers of CLOE is set forth in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on March 22, 2024. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, are included in the proxy statement/ prospectus and other relevant materials to be filed with the SEC regarding the transaction. Stockholders, potential investors and other interested persons should read the proxy statement/prospectus carefully before making any voting or investment decisions. These documents can be obtained free of charge from the sources indicated above.
No Offer or Solicitation
This press release shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed business combination. This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended, or an exemption therefrom.
FAQ
When is the special meeting to approve the Kustom Entertainment and Clover Leaf Capital merger for DGLY?
What is the record date for Digital Ally (DGLY) shareholders to receive Kustom Entertainment shares?
What percentage of Kustom Entertainment shares will Digital Ally (DGLY) distribute to its shareholders initially?
What is the equity value of Kustom Entertainment in the merger with Clover Leaf Capital for DGLY shareholders?
