Digital Brands Group, Inc. (“DBG” or the “Company”) (NASDAQ:DBGI), a curated collection of luxury lifestyle, digital-first brands, today announced that it has entered into definitive agreements 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) is being 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 will be exercisable immediately and will expire five and one-half years from the date of issuance, and the Series B warrants will be exercisable immediately and will expire fifteen months from the date of issuance. The private placement is expected to close on or about September 6, 2023, subject to the satisfaction of customary closing conditions.
H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.
The gross proceeds from the offering are expected to be 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.
