AUSTIN,
Texas, Sept. 5, 2023 /PRNewswire/ -- Digital
Brands Group, Inc. ("DBG" or the "Company") (NASDAQ: DBGI), a
curated collection of luxury lifestyle, digital-first brands, today
announced that it has closed its previously announced offering for
the issuance and sale of 513,875 shares of common stock (or
pre-funded warrants in lieu thereof) together with accompanying
common stock warrants at an offering price of $9.73 per share (or pre-funded warrant) and
accompanying warrants, in a private placement priced at-the-market
under Nasdaq rules. Each share of common stock (or common stock
equivalent) was offered in the offering together with a Series A
warrant to purchase one share of common stock at an exercise price
of $9.43 per share and a Series B
warrant to purchase one share of common stock at an exercise price
of $9.43 per share. The Series A
warrants are exercisable immediately and will expire five and
one-half years from the date of issuance, and the Series B warrants
are exercisable immediately and will expire fifteen months from the
date of issuance.
H.C. Wainwright & Co. acted as the exclusive placement agent
for the offering.
The gross proceeds from the offering were approximately
$5.0 million, before deducting the
placement agent's fees and other offering expenses payable by DBG.
The Company intends to use the net proceeds from this offering for
working capital purposes.
The securities offered in the private placement and described
above were offered in a private placement under Section 4(a)(2) of
the Securities Act of 1933, as amended (the "Act") and/or Rule
506(b) of Regulation D promulgated thereunder and have not been
registered under the Act or applicable state securities laws.
Accordingly, the securities may not be offered or sold in
the United States absent
registration with the Securities and Exchange Commission (the
"SEC") or an applicable exemption from such registration
requirements.
The Company also amended certain existing warrants to purchase
up to an aggregate of 196,542 shares of the Company's common stock
that were previously issued in December
2022 and January 2023 and have
exercise prices ranging from $95.00
to $131.25 per share, such that the
amended warrants now have a reduced exercise price of $9.43 per share and will expire five and one-half
years from the date of the closing of the offering.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any of the securities described
herein, nor shall there be any sale of these securities in any
state or other jurisdiction in which such an offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state or other jurisdiction.
About Digital Brands Group
We offer a wide variety of apparel through numerous brands on a
both direct-to-consumer and wholesale basis. We have created a
business model derived from our founding as a digitally
native-first vertical brand. Digital native first brands are brands
founded as e-commerce driven businesses, where online sales
constitute a meaningful percentage of net sales, although they
often subsequently also expand into wholesale or direct retail
channels., Unlike typical e-commerce brands, as a digitally native
vertical brand we control our own distribution, sourcing products
directly from our third-party manufacturers and selling directly to
the end consumer. We focus on owning the customer's "closet share"
by leveraging their data and purchase history to create
personalized targeted content and looks for that specific customer
cohort. We have strategically expanded into an omnichannel brand
offering these styles and content not only on-line but at selected
wholesale and retail storefronts. We believe this approach allows
us opportunities to successfully drive Lifetime Value ("LTV") while
increasing new customer growth.
Forward-looking Statements
Certain statements contained in this press release constitute
forward-looking statements, including, without limitation, the use
of proceeds therefrom. Management has based these forward-looking
statements on its current expectations, assumptions, estimates and
projections. While they believe these expectations, assumptions,
estimates and projections are reasonable, such forward-looking
statements are only predictions and involve known and unknown risks
and uncertainties, many of which are beyond management's control.
These statements involve risks and uncertainties that may cause the
Company's actual results, performance or achievements to differ
materially from any future results, performance or achievements
expressed or implied by these forward-looking statements as a
result of various important factors, as well as market and other
conditions and those risks more fully discussed in the section
titled "Risk Factors" in the Company's most recent Annual Report on
Form 10-K, as well as discussions of potential risks,
uncertainties, and other important factors in the Company's other
filings with the Securities and Exchange Commission.
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, except as required by law, the Company assumes no
obligation and does not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Digital Brands Group, Inc. Company Contact
Hil Davis, CEO
Email: invest@digitalbrandsgroup.co
Phone: (800) 593-1047
View original
content:https://www.prnewswire.com/news-releases/dbg-announces-closing-of-5-0-million-private-placement-priced-at-the-market-under-nasdaq-rules-301918330.html
SOURCE Digital Brands Group, Inc.