Clover Leaf Capital today announced a merger agreement with Digital Ally's subsidiary Kustom Entertainment at an equity value of $125 million.
Kustom Entertainment is focused on live events, concert production and ticketing, and CLOE have entered into a
Digital Ally will remain an independent public company following the merger.
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. Additionally, Digital Ally will distribute to its shareholders 15% of the shares obtained in Kustom Entertainment immediately following the closing of the merger and intends to distribute the balance of those shares following a six-month lock-up.
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, according to the announcement.
Source: Kustom Entertainment and Clover Leaf Capital Merging in 5M Deal