Digital Brands Group (NASDAQ: DBGI) Completes Offering of Common Stock and Pre-Funded Warrants

Digital Brands Group, Inc. recently announced the successful completion of a securities offering on October 28, 2024. The company, a Delaware corporation, entered into securities purchase agreements with accredited investors to issue and sell 6,233,650 shares of common stock (Common Stock) at a purchase price of $0.10 per share and 24,109,350 pre-funded warrants (Pre-Funded Warrants) at a purchase price of $0.0999 per warrant.

The offering, which closed on October 30, 2024, was conducted to raise funds and involved customary agreements, representations, and warranties between Digital Brands Group and the investors. The company also offered Pre-Funded Warrants to investors whose ownership, together with affiliates and related parties, would exceed certain thresholds post-offering. These warrants allow for the purchase of Common Stock, exercisable immediately at an exercise price of $0.0001 per share with no expiration date.

The securities offered, including the Common Stock and Pre-Funded Warrants, were done so pursuant to a registration statement on Form S-1 (File No. 333-282047) filed with the Securities and Exchange Commission (SEC) on October 24, 2024, and declared effective on October 28, 2024.

RBW Capital Partners LLC, acting through Dominari Securities LLC, served as the exclusive placement agent for the offering under a Placement Agency Agreement dated October 28, 2024. This agreement outlined the terms, conditions to closing, representation, warranties, and indemnification obligations of the parties involved.

The successful offering resulted in gross proceeds of approximately $3,000,000 for Digital Brands Group, before deducting fees, commissions, and other related expenses. As part of the agreement with the Placement Agent, the company paid a cash fee of 8.0% of the aggregate gross proceeds raised in the offering, along with other allowances and reimbursements.

For further details regarding the Placement Agency Agreement, Pre-Funded Warrants, and Purchase Agreement, interested parties are referred to the corresponding Exhibits 1.1, 4.1, and 10.1 attached to the report.

As an emerging growth company, Digital Brands Group continues to navigate its financial strategies and capital raising initiatives, positioning itself for future growth opportunities.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Digital Brands Group’s 8K filing here.

About Digital Brands Group

Digital Brands Group, Inc engages in the provision of apparel products under various brands on direct-to-consumer and wholesale basis. It operates through DSTLD, Bailey, H&J, Stateside, and Sundry segments. The company designs, manufactures, and sells women's apparel, such as tops, sweaters, dresses, jumpsuits, bottoms, sets, jackets, rompers, suiting, sportswear, shirts, jackets, pants, shorts, polos, T-shirts, skirts, athleisure bottoms, denims, and other accessory products, as well as suiting for men.