Digital Hopes to Gain Traction from Monday Jump
Digital Brands Group, Inc. (NASDAQ:DBGI) promised great things for Tuesday. Digital Brands, on Monday, reported first-quarter FY21 revenue of $408,000, down 84% year-on-year.
On Monday, the Company announced the underwriters of Digital Brand's previously announced public offering that initially closed on May 18 have purchased an additional 361,445 shares of common stock pursuant to the exercise by the underwriters of the remaining portion of their over-allotment option at a public offering price of $4.15 per share.
Digital Brands has now sold a total of 2,771,084 shares of common stock and warrants to purchase 2,771,084 shares of common stock for aggregate gross proceeds of approximately $11.5 million, prior to deducting underwriting discounts, commissions, and other offering expenses.
EF Hutton, division of Benchmark Investments, LLC, 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 EF Hutton.
DBGI offers "a wide variety of apparel through numerous brands on a both direct-to-consumer and wholesale basis," according to Tuesday’s news release.
"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."
DBGI shares hiked $1.01, or 18.4%, to $6.50.
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