Digital Brands Enters into Securities Purchase Agreement for $11.225 Million Private Placement with Select Investors
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 societ脿 emetter脿 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 pi霉 basso registrato nei cinque giorni di negoziazione precedenti la conversione, soggette a limiti di propriet脿 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 compa帽铆a emitir谩 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 m谩s bajo durante los cinco d铆as h谩biles previos a la conversi贸n, sujeto a l铆mites de propiedad beneficiaria. RBW Capital Partners LLC, una divisi贸n de Dawson James Securities, actu贸 como agente colocador. Los valores se ofrecen exclusivamente a inversores acreditados y requerir谩n registro ante la SEC para su reventa.
Digital Brands Group (OTCQX: DBGI)電� 靹犾爼霅� 韴瀽鞛愲摛瓿检潣 歃濌秾 毵れ垬瓿勳暯鞚� 韱淀暣 $11,225,000 攴滊鞚� PIPE 鞛愱笀臁半嫭鞚� 頇曤炒頄堨姷雼堧嫟. 須岇偓電� 鞎‰┐臧� $14,031,250鞚� 14,031.25欤� 攵勳潣 鞁滊Μ歃� D 鞝勴櫂鞖办劆欤�毳� 氚滍枆頃╇媹雼�.
鞁滊Μ歃� D 鞖办劆欤茧姅 鞝勴櫂 鞁滌爯 鞚挫爠 5瓯半灅鞚� 霃欖晥鞚� 斓滌爛 膦呹皜鞚� 80%搿� 氤错喌欤茧 鞝勴櫂霅橂┌, 鞙犾澋鞝� 靻岇湢 鞝滍暅(beneficial ownership limitations)鞚� 鞝侅毄鞚� 氚涭姷雼堧嫟. RBW Capital Partners LLC(雽�鞁滌槰 鞝滌瀯鞀� 鞁滍亹毽嫲鞀れ潣 攵�氍�)臧� 氚办箻 鞐愳澊鞝勴姼搿� 彀胳棳頄堨姷雼堧嫟. 鞚� 歃濌秾鞚� 瓿奠澑 韴瀽鞛愳棎瓴岆 鞝滉车霅橂┌ 鞛寪毵るゼ 鞙勴暣 SEC鞐� 霌彪頃挫暭 頃╇媹雼�.
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 s茅lectionn茅s. La soci茅t茅 茅mettra 14,031.25 actions privil茅gi茅es convertibles de s茅rie D d'une valeur nominale de $14,031,250.
Les actions de s茅rie D sont convertibles en actions ordinaires 脿 80% du prix de cl么ture le plus bas sur les cinq jours de bourse pr茅c茅dant la conversion, sous r茅serve de limites de propri茅t茅 b茅n茅ficiaire. 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 accr茅dit茅s et n茅cessiteront une immatriculation aupr猫s de la SEC pour la revente.
Digital Brands Group (OTCQX: DBGI) hat eine bedeutende PIPE-Finanzierung in H枚he von $11,225,000 durch einen Wertpapierkaufvertrag mit ausgew盲hlten Investoren gesichert. Das Unternehmen wird 14,031.25 St眉ck 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 眉ber die f眉nf Handelstage vor der Umwandlung, vorbehaltlich von Beschr盲nkungen des wirtschaftlichen Eigentums. RBW Capital Partners LLC, eine Sparte von Dawson James Securities, fungierte als Platzierungsagent. Die Wertpapiere werden ausschlie脽lich akkreditierten Investoren angeboten und erfordern f眉r den Wiederverkauf eine Registrierung bei der SEC.
- Secured significant funding of $11.225 million through PIPE financing
- Preferred stock conversion price at 20% discount to market provides potential upside for investors
- 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
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
Austin, TX, Aug. 09, 2025 (GLOBE NEWSWIRE) -- Digital Brands Group, Inc. (OTCQX: DBGI) (鈥淒BG鈥� or the 鈥淐ompany鈥�), a publicly traded company specializing in eCommerce and Fashion, today announced that it has entered into a private investment in public equity (鈥淧IPE鈥�) financing agreement with select investors (the 鈥淚nvestors鈥�) for gross proceeds of approximately
Pursuant to the terms of the securities purchase agreement dated August 8, 2025 (the 鈥淧urchase Agreement鈥�), the Company has agreed to sell, and the Investors have agreed to purchase, up to 14,031.25shares of its Series D Convertible Preferred Stock (the 鈥淪eries D Preferred Stock鈥�), convertible into shares of the Company鈥檚 common stock, par value
RBW Capital Partners LLC (a division of Dawson James Securities, Inc,) acted as the placement agent in connection with the PIPE financing.聽
The securities being offered and sold by the Company in the PIPE financing have not been registered under the Securities Act of 1933, as amended (the 鈥淪ecurities Act鈥�), or state securities laws and may not be offered or sold in the United States absent registration with the U.S. Securities and Exchange Commission (the 鈥淪EC鈥�) or an applicable exemption from such registration requirements. The securities were offered only to accredited investors. The Company has agreed to file one or more registration statements with the SEC covering the resale of the unregistered shares issuable upon the conversion of the Series D Preferred Stock.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Digital Brands Group
We offer a wide variety of apparel through numerous brands on a direct-to-consumer and wholesale basis. We have created a business model derived from our founding as a digitally native-first vertical brand. We focus on owning the customer鈥檚 鈥渃loset share鈥� by leveraging their data and purchase history to create personalized targeted content and looks for that specific customer cohort.
Digital Brands Group, Inc. Company Contact
Hil Davis, CEO
Email:
Caution Regarding Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. Investors can identify these forward-looking statements by words or phrases such as 鈥渕ay,鈥� 鈥渨ill,鈥� 鈥渆xpect,鈥� 鈥渁nticipate,鈥� 鈥渁im,鈥� 鈥渆stimate,鈥� 鈥渋ntend,鈥� 鈥減lan,鈥� 鈥渂elieve,鈥� 鈥渋s/are likely to,鈥� 鈥減otential,鈥� 鈥渃ontinue鈥� or other similar expressions. These statements are subject to uncertainties and risks including, but not limited to, the risk factors discussed in the Risk Factors and in Management鈥檚 Discussion and Analysis of Financial Condition and Results of Operations sections of our Forms 10-K, 10-Q and other reports filed with the SEC and available at . Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company鈥檚 registration statement and other filings with the SEC. Additional factors are discussed in the Company鈥檚 filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law.
FAQ
What is the size of Digital Brands Group's (DBGI) recent PIPE financing?
What are the conversion terms for DBGI's Series D Preferred Stock?
How many Series D Preferred shares is DBGI issuing in the private placement?
Who acted as the placement agent for DBGI's PIPE financing?
Will DBGI's new preferred shares be immediately tradeable?
