AUSTIN,
Texas, Nov. 29, 2022 /PRNewswire/ -- Digital
Brands Group, Inc. ("Digital Brands" or the "Company") (Nasdaq:
DBGI), a curated collection of luxury lifestyle, digital-first
brands, today announced the pricing of a public offering of up to
168,000 shares of its common stock (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.
H.C. Wainwright & Co. is acting as the exclusive placement
agent for the offering.
The gross proceeds to the Company from the offering are expected
to be approximately $10 million,
before deducting the placement agent's fees and other offering
expenses payable by the Company. The Company intends to use the net
proceeds from this offering to 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.
The securities described above are being offered pursuant to a
registration statement on Form S-1 (File No. 333-268213) originally
filed with the Securities and Exchange Commission ("SEC") on
November 7, 2022 and became effective
on November 29, 2022. The public
offering is being made only by means of a prospectus, which forms a
part of the effective registration statement. When available,
electronic copies of the final prospectus may be obtained for free
on the SEC's website located at http://www.sec.gov and may also be
obtained by contacting H.C. Wainwright & Co., LLC at 430 Park
Avenue, 3rd Floor, New York, NY
10022, by phone at (212) 856-5711 or e-mail at
placements@hcwco.com.
This press release shall not constitute an offer to sell or a
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 offer, solicitation or
sale would be unlawful prior to the registration or qualification
under the securities laws of any such state or other
jurisdiction.
About Digital Brands Group
Digital Brands Group is a curated collection of lifestyle
brands, including Bailey 44,
DSTLD, Harper and Jones, Stateside and ACE Studios, that offers
a variety of apparel products through direct-to-consumer and
wholesale distribution. Our complementary brand portfolio provides
us with the unique opportunity to cross merchandise our brands. We
aim for our customers to wear our brands head to toe and to capture
what we call "closet share" by gaining insight into their
preferences to create targeted and personalized content specific to
their cohort. Operating our brands under one portfolio provides us
with the ability to better utilize our technological, human capital
and operational capabilities across all brands. As a result, we
have been able to realize operational efficiencies and continue to
identify additional cost saving opportunities to scale our brands
and overall portfolio.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements contained in this press release constitute
forward-looking statements, including, without limitation, the
ability of the Company to consummation of the public offering, the
satisfaction of the closing conditions of the public offering
and 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.
Investor Contact:
Digital Brands Group, Inc. Company Contact
Hil Davis, CEO
Email: invest@digitalbrandsgroup.co
Phone: (800) 593-1047
Related Links
https://www.digitalbrandsgroup.co
https://ir.digitalbrandsgroup.co
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SOURCE Digital Brands Group, Inc.