DBGI Announces Exercise Of Warrants For $3.2M In Gross Proceeds
Portfolio Pulse from Benzinga Newsdesk
Digital Brands Group, Inc. (DBGI) announced the exercise of certain outstanding warrants for $3.2 million in gross proceeds. These warrants, issued on September 5, 2023, are being exercised at a reduced price of $3.13 per share, down from the original $9.43. The transaction involves Series A and B warrants, with the closing expected around May 7, 2024. Additionally, DBGI will issue new Series A-1 and B-1 warrants at an exercise price of $2.88 per share. H.C. Wainwright & Co. serves as the placement agent. The proceeds are intended for working capital purposes.
May 03, 2024 | 1:19 pm
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POSITIVE IMPACT
DBGI's exercise of warrants for $3.2M in gross proceeds could provide a short-term boost to its working capital, potentially improving its financial stability and growth prospects.
The exercise of warrants at a reduced price indicates investor confidence and provides DBGI with necessary working capital, which could positively impact its stock price in the short term. The issuance of new warrants at a lower exercise price also suggests future fundraising opportunities, potentially enhancing investor interest and stock liquidity.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100