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Digital Brands Group (OTCQX: DBGI) has secured a significant $11.225 million PIPE financing through a securities purchase agreement with select investors. The company will issue 14,031.25 shares of Series D Convertible Preferred Stock with a stated value of $14,031,250.
The Series D Preferred Stock is convertible into common stock at 80% of the lowest closing price over five trading days prior to conversion, subject to beneficial ownership limitations. RBW Capital Partners LLC, a division of Dawson James Securities, served as the placement agent. The securities are being offered exclusively to accredited investors and will require registration with the SEC for resale.
Digital Brands Group (OTCQX: DBGI) ha ottenuto un significativo $11,225,000 di finanziamento PIPE tramite un accordo di acquisto di titoli con investitori selezionati. La società emetterà 14,031.25 azioni della Serie D di azioni privilegiate convertibili con un valore nominale di $14,031,250.
Le azioni Serie D sono convertibili in azioni ordinarie al 80% del prezzo di chiusura più basso registrato nei cinque giorni di negoziazione precedenti la conversione, soggette a limiti di proprietà beneficiaria. RBW Capital Partners LLC, una divisione di Dawson James Securities, ha agito come agente di collocamento. I titoli vengono offerti esclusivamente a investitori accreditati e richiederanno la registrazione presso la SEC per la rivendita.
Digital Brands Group (OTCQX: DBGI) ha asegurado un importante financiamiento PIPE de $11,225,000 mediante un acuerdo de compra de valores con inversores selectos. La compañía emitirá 14,031.25 acciones preferentes convertibles de la Serie D con un valor nominal de $14,031,250.
Las acciones Serie D son convertibles en acciones ordinarias al 80% del precio de cierre más bajo durante los cinco días hábiles previos a la conversión, sujeto a límites de propiedad beneficiaria. RBW Capital Partners LLC, una división de Dawson James Securities, actuó como agente colocador. Los valores se ofrecen exclusivamente a inversores acreditados y requerirán registro ante la SEC para su reventa.
Digital Brands Group (OTCQX: DBGI)는 선정된 투자자들과의 증권 매수계약을 통해 $11,225,000 규모의 PIPE 자금조달을 확보했습니다. 회사는 액면가 $14,031,250인 14,031.25주 분의 시리즈 D 전환우선주를 발행합니다.
시리즈 D 우선주는 전환 시점 이전 5거래일 동안의 최저 종가의 80%로 보통주로 전환되며, 유익적 소유 제한(beneficial ownership limitations)의 적용을 받습니다. RBW Capital Partners LLC(대시온 제임스 시큐리티스의 부문)가 배치 에이전트로 참여했습니다. 이 증권은 공인 투자자에게만 제공되며 재판매를 위해 SEC에 등록해야 합니다.
Digital Brands Group (OTCQX: DBGI) a obtenu un important financement PIPE de $11,225,000 via un accord d’achat de titres avec des investisseurs sélectionnés. La société émettra 14,031.25 actions privilégiées convertibles de série D d’une valeur nominale de $14,031,250.
Les actions de série D sont convertibles en actions ordinaires à 80% du prix de clôture le plus bas sur les cinq jours de bourse précédant la conversion, sous réserve de limites de propriété bénéficiaire. RBW Capital Partners LLC, une division de Dawson James Securities, a agi en tant qu’agent de placement. Les titres sont offerts exclusivement aux investisseurs accrédités et nécessiteront une immatriculation auprès de la SEC pour la revente.
Digital Brands Group (OTCQX: DBGI) hat eine bedeutende PIPE-Finanzierung in Höhe von $11,225,000 durch einen Wertpapierkaufvertrag mit ausgewählten Investoren gesichert. Das Unternehmen wird 14,031.25 Stück der Serie D wandelbarer Vorzugsaktien mit einem Nennwert von $14,031,250 ausgeben.
Die Serie-D-Vorzugsaktien sind in Stammaktien wandelbar zu 80% des jeweils niedrigsten Schlusskurses über die fünf Handelstage vor der Umwandlung, vorbehaltlich von Beschränkungen des wirtschaftlichen Eigentums. RBW Capital Partners LLC, eine Sparte von Dawson James Securities, fungierte als Platzierungsagent. Die Wertpapiere werden ausschließlich akkreditierten Investoren angeboten und erfordern für den Wiederverkauf eine Registrierung bei der SEC.
Positive
- Secured significant funding of $11.225 million through PIPE financing
- Preferred stock conversion price at 20% discount to market provides potential upside for investors
Negative
- Potential dilution for existing shareholders upon conversion of preferred stock
- Conversion price tied to lowest closing price over 5 days could create downward pressure on stock
Insights
Digital Brands secured $11.225M through a discounted convertible preferred stock offering, significantly diluting existing shareholders while providing crucial operating capital.
Digital Brands Group (DBGI) has secured $11.225 million in gross proceeds through a private placement with select investors, a critical cash infusion for this small fashion eCommerce company. However, the financing terms reveal concerning details for existing shareholders. The company is issuing Series D Convertible Preferred Stock that converts to common shares at a 20% discount to market price (specifically, 80% of the lowest closing price over a 5-day lookback period).
This discount structure and the variable conversion mechanism create a potentially toxic financing arrangement. When preferred shareholders convert their stock, they’ll receive common shares at a substantial discount to market value, creating immediate profit potential while diluting existing shareholders. The structure allows for conversions based on the lowest price over the measurement period, further benefiting the investors at shareholders’ expense.
Notably, the $11.225 million cash purchase price has a stated value of $14.031 million, representing an immediate 25% premium to the investors – essentially a built-in discount before any conversions even occur. While this capital injection may provide DBGI with needed operational runway, the highly dilutive terms suggest the company had limited financing alternatives, potentially indicating significant underlying business challenges or cash flow issues.
08/09/2025 – 07:15 PM
Austin, TX, Aug. 09, 2025 (GLOBE NEWSWIRE) — Digital Brands Group, Inc. (OTCQX: DBGI) (“DBG” or the “Company”), a publicly traded company specializing in eCommerce and Fashion, announced today it has finalized a private investment in public equity (PIPE) financing agreement. The deal, struck with select investors, nets the company gross proceeds of approximately $11.225 million, a figure that factors in placement agent fees and other expenses, according to a company statement.
The terms of the securities purchase agreement, dated August 8, 2025, stipulate that Digital Brands Group will issue up to 14,031.25 shares of its Series D Convertible Preferred Stock. These shares, convertible into the company’s common stock at a price equivalent to 80% of the lowest closing price over the five trading days leading up to conversion, are subject to beneficial ownership limitations. The aggregate cash purchase price for the Series D Preferred Stock totaled $11,225,000, representing a stated value of $14,031,250.
RBW Capital Partners LLC, a division of Dawson James Securities, Inc., served as the placement agent for this PIPE financing.
Investors should note that the securities offered and sold in this PIPE financing have not been registered under the Securities Act of 1933 nor state securities laws. As such, these securities may not be offered or sold in the United States without registration with the SEC or an applicable exemption. These securities were exclusively offered to accredited investors, and Digital Brands Group has committed to filing one or more registration statements with the SEC to cover the resale of unregistered shares upon the conversion of the Series D Preferred Stock.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy securities. Furthermore, no sale of these securities will occur in any state or jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under local securities laws.
About Digital Brands Group
Digital Brands Group operates a diverse portfolio of apparel brands, offering a wide variety of apparel through direct-to-consumer and wholesale channels. The company’s business model, rooted in its origin as a digitally native-first vertical brand, focuses on cultivating customer loyalty and market share by leveraging data and purchase history to personalize content and curated looks for specific customer segments. The goal is to own the customer’s “closet share.”
Digital Brands Group, Inc. Company Contact
Hil Davis, CEO
Email: [email protected]
https://ir.digitalbrandsgroup.co
Caution Regarding Forward-Looking Statements
This release contains forward-looking statements within the meaning of federal securities laws. These statements, identifiable by terms such as “may,” “will,” “expect,” and “anticipate,” are inherently subject to risks and uncertainties. Investors are urged to consult the risk factors detailed in Digital Brands Group’s SEC filings, including Forms 10-K and 10-Q, available at www.sec.gov. While the Company expresses confidence in these forward-looking statements, actual results may deviate materially. Digital Brands Group disclaims any obligation to update these statements except as legally required.
FAQ
What is the size of Digital Brands Group’s (DBGI) recent PIPE financing?
Digital Brands Group secured $11.225 million in gross proceeds through a PIPE financing agreement with select investors.
What are the conversion terms for DBGI’s Series D Preferred Stock?
The Series D Preferred Stock is convertible into common stock at 80% of the lowest closing price over the five trading days immediately prior to conversion, subject to ownership limitations.
How many Series D Preferred shares is DBGI issuing in the private placement?
DBGI is issuing 14,031.25 shares of Series D Convertible Preferred Stock with a stated value of $14,031,250.
Who acted as the placement agent for DBGI’s PIPE financing?
RBW Capital Partners LLC, a division of Dawson James Securities, Inc., acted as the placement agent for the PIPE financing.
Will DBGI’s new preferred shares be immediately tradeable?
No, the shares must first be registered with the SEC. DBGI has agreed to file registration statements covering the resale of shares issuable upon conversion of the Series D Preferred Stock.
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