Shares of Digital Ally, Inc. DGLY, a provider of video recording and analytical software, have been on a roller coaster ride since the start of February.
The shares were ripping higher Friday morning on about nine times their average volume following a filing by the company regarding the withdrawal of an offering.
Digital Ally said in the filing it has decided not to pursue a previously announced public offering, adding that the withdrawal is consistent with the public interest and the protection of investors.
The positive stock reaction could be due to the fact that the withdrawal prevents dilution.
The company filed an S-1 registration statement with the SEC Jan. 21 regarding an offering of Class A and Class B units.
In an amendment to the S-1 filing Feb. 7, the company said it would offer up to $8 million in Class A Units, with each unit consisting of one share of common stock and one common stock purchase warrant to purchase 0.75 shares of common stock.
The company also announced an offering up to $8 million of Class B Units.
Digital Ally shares rallied over 28% Feb. 4 following the disclosure of a contract to supply 5,000 body cameras for a three-year period to a national police force.
The stock was jumping 32.08% to $1.18 at the time of publication Friday.
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