Digital Brands (NASDAQ:DBGI) stock is dropping on Wednesday after the women’s apparel company announced a Securities Purchase Agreement.
According to a filing with the Securities and Exchange Commission (SEC), the company has entered into this agreement with a certain accredited investor. This includes the sale of 32,000 shares of DBGI stock, along with an equal amount of both Series A Warrants and Series B Warrants.
The Securities Purchase Agreement has this investor acquiring these shares and warrants for a combined price of $9.73. It also includes 481,875 pre-funded warrants combined with Series A and Series B Warrants for the purchase of 481,875 shares at a combined price of $9.73.
Digital Brands notes that the warrants included in this are immediately exercisable. The company says the private placement closed on Sept. 5 and that it will use the net proceeds from it to pay off certain indebtedness and as working capital.
What This Means For DBGI Stock
This private placement increases the total number of shares of DBGI stock while also pricing them lower than its prior closing price of $14.13 per share. Considering that, it makes sense that investors would see the company’s stock fall this morning.
DBGI stock is down 15.2% as of Wednesday morning as some 51,000 shares change hands. For the record, the company’s daily average trading volume is about 187,000 shares.
There’s even more stock market news traders will want to read about today below!
We’ve got all of the biggest pre-market stock movers for investors to sink their teeth into on Wednesday! That includes everything happening with shares of Verb Tech (NASDAQ:VERB) stock, Marin Software (NASDAQ:MRIN) stock, and NeuBase Therapeutics (NASDAQ:NBSE) stock today. All of that news is ready to go at the links below!
More Wednesday Stock Market News
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
