Apparel Company Digital Brands Seeks Options - What's On The Cards?
Portfolio Pulse from Shivani Kumaresan
Digital Brands Group Inc (NASDAQ:DBGI) has announced that its Board of Directors will initiate a formal review to explore strategic alternatives to maximize shareholder value. The decision comes in light of the dislocation between the company's public market value and the intrinsic value of its underlying assets. The company has not set a deadline for the completion of the process. In recent months, Digital Brands raised $5 million through equity offering and reported a 69.6% increase in Q2 FY23 revenue to $4.5 million.
November 06, 2023 | 5:44 pm
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Digital Brands Group's decision to explore strategic alternatives could potentially lead to actions that may increase shareholder value. The company's recent financial performance and fundraising activities may also influence its stock price.
The announcement of a strategic review often leads to speculation about potential actions that could increase shareholder value, such as a sale of the company, a merger, or other significant changes. This speculation can drive up the stock price in the short term. Additionally, the company's recent financial performance and fundraising activities indicate a potentially strong position, which could also positively impact the stock price.
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