Clover Leaf Capital Corp. (Nasdaq: CLOE) (“CLOE” or “Clover Leaf”),
a publicly traded special purpose acquisition company, and Digital
Ally, Inc. (Nasdaq: DGLY) (“Digital Ally”) today announced that on
September 27, 2024, Clover Leaf convened and then adjourned,
without conducting other business, its special meeting of its
stockholders in lieu of its 2024 Annual Meeting of Stockholders
(the “Meeting” ) to 10:00 a.m., Eastern Time on Friday, October 11,
2024. At the meeting, stockholders of Clover Leaf will be asked to
vote on proposals to approve, among other things, its proposed
initial business combination (the “Business Combination”) with
Kustom Entertainment, Inc., a Nevada corporation (“Kustom
Entertainment” or the “Company”), pursuant to an Agreement and Plan
of Merger (as amended, the “Merger Agreement”), by and among Clover
Leaf, CL Merger Sub, Inc., a Nevada corporation and a wholly-owned
subsidiary of Clover Leaf (“Merger Sub”), Yntegra Capital
Investments LLC, a Delaware limited liability company, in the
capacity as the Purchaser Representative (as defined in the Merger
Agreement) and Digital Ally, Inc., a Nevada corporation and the
sole stockholder of the Company (“Digital Ally”). There is no
change to the location, the record date, the purpose or any of the
proposals to be acted upon at the Meeting.
As a result of this change, the Meeting will now
be held at 10:00 a.m. Eastern Time on Friday, October 11, 2024 via
the live webcast at https://www.cstproxy.com/cloverlcc/bc2024. Also
as a result of this change, the deadline for holders of Clover
Leaf’s Class A common stock issued in Clover Leaf’s initial public
offering to submit their shares for redemption in connection with
the Business Combination, is being extended to 5:00 p.m. Eastern
Time on Wednesday, October 9, 2024. The record date for Clover
Leaf’s stockholders to vote in the Meeting remains July 24,
2024.
Clover Leaf plans to continue to solicit proxies
from stockholders during the period prior to the Meeting. Only the
holders of the Clover Leaf’s common stock as of the close of
business on July 24, 2024, the record date for the Meeting, are
entitled to vote at the Meeting.
If any Clover Leaf stockholder has any questions
or need assistance, such stockholder should (i) reach out to his,
her or its broker or (ii) contact Morrow Sodali LLC, Clover Leaf’s
proxy solicitor, for assistance via e-mail at CLOE.info or
toll-free call at 800-662-5200. Banks and brokers can place a
collect call to Morrow Sodali LLC at 203-658-9400 or email at
CLOE.info@investor.morrowsodali.com.
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,
CEOInfo@kustoment.comInfo@cloverlcc.comForward-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.
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