Digital Brands Shares Plummet On Pricing Equity Offering At 50% Discount

Digital Brands Group Inc DBGI has priced its underwritten public offering of 37.4 million shares at $0.25 per share.
The offer price represents a 50% discount on Digital’s closing price on May 5, 2022.
The company has granted the underwriters a 45-day option to purchase up to 5.4 million additional shares of common stock at the public offering price.
The company expects gross proceeds from the offering to be $9.34 million, which it intends to use for working capital and general corporate purposes.
The offering is expected to close on May 10, 2022.
Price Action: DBGI shares are trading lower by 51.2% at $0.24 in premarket on the last check Friday.