AUSTIN, Texas, June 15, 2021 /PRNewswire/ -- DBG, Inc
(NASDAQ: DBGI), a digitally first portfolio company, today
announced that it has signed a non-binding letter of intent to
acquire Stateside, a privately-owned global elevated basics
brand.
- The parties intend to enter into a binding agreement within the
next thirty days, with the closing envisaged in the third quarter
of 2021. DGB expects to fund the acquisition with a combination of
cash and equity to provide the Company the optimum financial
flexibility in the future. Completion of the transaction is subject
to customary conditions, including but not limited to the following
key conditions:
- Execution of the Definitive Agreement;
- Completion of mutually satisfactory due diligence; and
- Receipt of all required regulatory, corporate and third party
approvals.
Accordingly, there can be no assurance that a definitive
agreement will be entered into or that the proposed transaction
will be consummated.
"We are very excited to take the first steps towards the
addition of Stateside to the DBG family. DBG believes there is a
significant opportunity to increase the brand's direct-to-consumer
channel, given that the brand is primarily a wholesale brand
currently. Additionally, we believe that we can increase the brand
awareness and customer reach to drive meaningful short and
long-term revenue," said Laura
Dowling, DBG's Chief Marketing Officer.
"The acquisition of Stateside is validation of our recent IPO
and our vision and strategy to grow our brand portfolio, revenue
and cash flow through acquisitions. We believe the Stateside brand
will increase DBG's 2021 revenue while also driving near and
long-term shareholder value," said Hil
Davis, DBG's Chief Executive Officer."
"We are proud to sign the letter of intent to join DBG, a
company that is modernizing the holding company model" said Moise
Emiques. "Their direct-to-consumer and marketing expertise will
allow us to focus even more on developing and expanding our product
offering."
Forward-looking Statements
Certain statements included in this release are "forward-looking
statements" within the meaning of the federal securities laws.
Forward-looking statements are made based on our expectations and
beliefs concerning future events impacting DBG and therefore
involve several risks and uncertainties. You can identify these
statements by the fact that they use words such as "will,"
"anticipate," "estimate," "expect," "should," and "may" and other
words and terms of similar meaning or use of future dates, however,
the absence of these words or similar expressions does not mean
that a statement is not forward-looking. All statements regarding
DBG's plans, objectives, projections and expectations relating to
the acquisition of Stateside, DBG's operations or financial
performance, and assumptions related thereto are forward-looking
statements. We caution that forward-looking statements are not
guarantees and that actual results could differ materially from
those expressed or implied in the forward-looking statements. DBG
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law. Potential
risks and uncertainties that could cause the actual results of
operations or financial condition of DBG to differ materially from
those expressed or implied by forward-looking statements include,
but are not limited to: risks arising from the widespread outbreak
of an illness or any other communicable disease, or any other
public health crisis, including the coronavirus (COVID-19) global
pandemic; the level of consumer demand for apparel and accessories;
DBG's ability to implement its business strategy; DBG's ability to
execute and integrate acquisitions; and DBG's indebtedness and its
ability to obtain financing on favorable terms, if needed. More
information on potential factors that could affect DBG's financial
results is included from time to time in DBG's public reports filed
with the SEC, including DBG's Annual Report on Form 10-K, and
Quarterly Reports on Form 10-Q, and Forms 8-K filed or furnished
with the SEC.
About Digital Brands Group
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 Stateside
Stateside is a collection of elevated American basics influenced
by the evolution of the classic T-Shirt. All garments are designed
and produced in Los Angeles from
the finest fabrics. All knitting, dyeing, cutting and sewing is
sourced and manufactured locally in Los
Angeles. Stateside invested in quality and the local
communities.
Digital Brands Group, Inc. Company Contact
Hil Davis, CEO
Email: invest@digitalbrandsgroup.co
Phone: (800) 593-1047
Related Links
https://www.digitalbrandsgroup.co
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SOURCE Digital Brands Group, Inc.