Digital Brands Group secures additional $1.5 million in PIPE financing

NEW YORK - Digital Brands Group, Inc. (NASDAQ:DBGI), a fashion company with a market capitalization of $19.65 million and facing significant liquidity challenges according to InvestingPro data, announced Wednesday it has amended its previously reported private investment in public equity (PIPE) financing to secure an additional $1.5 million investment before expenses.

The fashion and eCommerce company, which generated revenue of $8.71 million in the last twelve months, said it agreed with initial investors on September 23 to amend the Securities Purchase Agreement originally entered on August 8. The amendment allows for the issuance of an additional 1,875 shares of Series D Convertible Preferred Stock to an accredited investor. InvestingPro analysis indicates the company’s current ratio of 0.33 suggests pressing short-term liquidity needs.

These additional shares will have the same conversion terms as those issued in the initial closing on August 13, convertible into common stock at 80% of the lowest closing price over five trading days prior to conversion, subject to ownership limitations.

The company expects to close this additional investment around September 26, pending customary closing conditions. The amendment also extends the deadline for filing a resale registration statement to December 1.

The Series D Preferred Stock has a stated value of $2,156,250 for the $1.5 million purchase price. RBW Capital Partners LLC, a division of Dawson James Securities, Inc., served as placement agent for the transaction.

The securities being offered have not been registered under the Securities Act of 1933 and were offered only to accredited investors, according to the company’s press release statement.

Digital Brands Group operates multiple apparel brands through direct-to-consumer and wholesale channels, leveraging customer data to create targeted content and personalized offerings. While the stock has shown remarkable YTD returns of 145%, InvestingPro analysis reveals 15+ additional key insights about the company’s financial health and market position, available exclusively to subscribers through detailed Pro Research Reports.

In other recent news, Digital Brands Group announced its acceptance into the NVIDIA Connect Program through its technology subsidiary, Open Daily Technologies Inc. This development provides the company with access to NVIDIA’s artificial intelligence and machine learning resources, as well as engineering expertise. The program also offers technical training and engineering guidance, which could support product development and improve operational efficiency. Additionally, Digital Brands Group will receive discounts on NVIDIA software and hardware. These resources and benefits are expected to enhance the company’s technological capabilities.

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