Digital Brands Group Announces Conversion Of All Remaining Pre-Funded Warrants, Removing Overhang Of Shares
Portfolio Pulse from Benzinga Newsdesk
Digital Brands Group, Inc. (DBGI) has announced the conversion of all remaining pre-funded warrants from their August 2023 financing into common shares. This move eliminates the overhang of shares and is expected to positively impact the company's stock. The conversion has resulted in a total of 857,859 common shares outstanding. CEO Hil Davis believes this will aid in executing their growth strategy and maintaining Nasdaq listing standards. The company anticipates being ebitda neutral in Q1 due to increasing revenue trends and decreasing operating expenses.
December 04, 2023 | 2:10 pm
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Digital Brands Group's conversion of pre-funded warrants into common shares is likely to be viewed positively by investors as it removes the uncertainty of share overhang and demonstrates progress towards the company's growth strategy and Nasdaq compliance.
The conversion of pre-funded warrants is typically seen as a positive step towards reducing potential dilution and providing clarity on the company's share structure. This action, coupled with the CEO's optimistic outlook on achieving ebitda neutrality, could lead to increased investor confidence and a potential short-term uplift in DBGI's stock price.
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