Kustom Entertainment, Clover Leaf announce registration statement effectiveness

Kustom Entertainment, a subsidiary of Digital Ally (DGLY), announced that Clover Leaf Capital Corp.’s (CLOE) registration statement on Form S-4 has been declared effective by the U.S. Securities and Exchange Commission 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 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 to approve the proposed business combination is scheduled on August 20, 2024 at 10:00 a.m. Eastern Time. 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 $125 million for Kustom Entertainment, Inc. The combined company is expected to have an implied initial pro forma equity value of approximately $222.2 million. Additionally, Digital Ally will distribute to its shareholders 30% of the shares obtained in Kustom Entertainment immediately following the closing of the merger and intends to distribute the balance of such shares following a six-month lock-up period. The initial distribution will be made to all stockholders of record of Digital Ally as of the close of business on August 12, 2024.