LOS ANGELES, May 18, 2021 /PRNewswire/ -- Digital Brands
Group, Inc. (NASDAQ: DBGI) ("Digital Brands" or the "Company"),
today announced the closing of a firm underwritten public offering
of 2,409,639 shares of common stock and warrants to purchase
2,771,084 shares of common stock (which includes warrants to
purchase 361,445 shares of common stock pursuant to the partial
exercise by the underwriters of their over-allotment option) at a
combined public offering price of $4.15 per share and warrant for aggregate gross
proceeds of approximately $10.0
million, prior to deducting underwriting discounts,
commissions, and other offering expenses and excluding any exercise
of the underwriters' option to purchase any additional securities
as described herein. In addition, the Company granted the
underwriters a 45-day option to purchase up to an additional
361,445 shares and 361,445 warrants at the public offering price
less the underwriting discounts and commissions. The underwriters
partially exercised their option to purchase the 361,445 warrants
and the offering closed on May 18,
2021.
The Company's shares of common stock and warrants are
listed on the Nasdaq Capital Market under the symbols "DBGI" and
"DBGIW", respectively. Each warrant is exercisable for one share of
common stock at an exercise price of $4.57 per share and will expire five years from
the date of issuance.
Kingswood Capital Markets, division of Benchmark Investments,
Inc., acted as the sole book-running manager for the offering.
Manatt, Phelps & Phillips, LLP represented Digital Brands and
Nelson Mullins Riley &
Scarborough LLP acted for Kingswood.
The Securities and Exchange Commission ("SEC") declared
effective a registration statement on Form S-1 (File No.
333-255193) relating to these securities on May 13, 2021, and a related registration
statement on Form S-1 (File No. 333-256174) was filed pursuant to
Rule 462(b) under the Securities Act, as amended, on May 14, 2021. A final prospectus relating to this
offering was filed with the SEC on May 17,
2021.
This press release shall not constitute an offer to sell nor the
solicitation of an offer to buy, nor shall there by any sale of the
common stock and warrants, in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such
state or jurisdiction.
Concurrently with the closing of the offering, the Company also
closed its previously announced acquisition of Harper & Jones,
LLC ("H&J"). The Company, in exchange for both stock and cash,
acquired all outstanding membership interests of H&J. The
acquisition of H&J allows the Company to extend its customer
reach while continuing in its focus of providing a variety of
direct-to-consumer and wholesale apparel brands.
About Digital Brands Group, Inc.
We offer a wide
variety of apparel through numerous brands on a both
direct-to-consumer and wholesale basis. We have created a business
model derived from our founding as a digitally native-first
vertical brand. Digital native first brands are brands founded as
e-commerce driven businesses, where online sales constitute a
meaningful percentage of net sales, although they often
subsequently also expand into wholesale or direct retail channels.,
Unlike typical e-commerce brands, as a digitally native vertical
brand we control our own distribution, sourcing products directly
from our third-party manufacturers and selling directly to the end
consumer. We focus on owning the customer's "closet share" by
leveraging their data and purchase history to create personalized
targeted content and looks for that specific customer cohort. We
have strategically expanded into an omnichannel brand offering
these styles and content not only on-line but at selected wholesale
and retail storefronts. We believe this approach allows us
opportunities to successfully drive Lifetime Value ("LTV") while
increasing new customer
growth.
About Harper & Jones, LLC
Harper & Jones, LLC
is a custom and made-to-measure suiting and sportswear company that
provides customers with a range of full-closet customization
options. Harper & Jones, LLC is currently headquartered in
Dallas, Texas, with showrooms in
Dallas, Texas, Houston, Texas and New Orleans, Louisiana.
Digital Brands Group, Inc. Company
Contact
Hil Davis,
CEO
Email: invest@digitalbrandsgroup.co
Phone: (800) 593-1047
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SOURCE Digital Brands Group, Inc.