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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.
  • DBGI is -31% to $4.955
  • Source: Press Release