Digital Brands falls 31%on pricing of public offering of shares and warrants
Digital Brands (NASDAQ:DBGI) prices a public offering of up to 168,000 common shares (or pre-funded warrants in lieu thereof), Class B Warrants to purchase up to 1,818,182 shares of its common stock ("Class B Warrants"), and Class C Warrants to purchase up to 1,818,182 shares of its common stock ("Class C Warrants", together with the Class B Warrants, collectively the "Warrants"), at an offering price to the public of $5.50 per share (or pre-funded warrant in lieu thereof) and associated Warrants.
The Class B Warrants will have an exercise price of $5.25 per share, are exercisable immediately upon issuance, and will expire five years following the date of issuance.
The Class C Warrants will have an exercise price of $5.25 per share, are exercisable immediately upon issuance, and will expire thirteen months following the date of issuance.
The closing of the offering is expected to occur on or about December 1, 2022, subject to the satisfaction of customary closing conditions.
The gross proceeds of Approx. $10M will fund a portion of the cash purchase price of its Sundry acquisition, to repay outstanding promissory notes, for the payment under a settlement agreement with the former owners of H&J and the remaining balance for general corporate purposes.