Digital Brands Group, Inc. (DBGI), the Austin, TX-based e-commerce and apparel portfolio company that represents the Stateside, Sundry, Bailey 44, DSTLD, and AVO Studio brands, is reporting that it has initiated a review of strategic alternatives in order to explore ways to maximize shareholder value. As part of this process, the company said it will evaluate a range of potential alternatives, including a sale of the company, a merger or another strategic or financial transaction.
DBG said it has not set a deadline or definitive timeline for the completion of the strategic alternatives review process and cautioned that there can be no assurance that this process will result in a transaction or particular outcome. The company said it “does not intend to comment further unless and until its Board of Directors has approved a specific course of action or the company has otherwise determined that further disclosure is appropriate or necessary.”
In June, the company, also known as DBGI or DBG Corp., said it has been notified by concerned shareholders of a troubling series of events involving collusion, acting in concert, multiple violations of the 4.99 percent rule, the use of foreign silent partners as nominees, and transfer agent discrepancies.
DBGI said, “Shareholders and stakeholders are actively seeking immediate clarification and corrective action from the Board of Directors regarding these concerns.” The company said it “remains committed to adhering to SEC regulations and ensuring a fair, transparent market for all investors.”
In mid-July, the company announced a 1-for-40 reverse stock split to solidify its continued Nasdaq compliance. The Reverse Stock Split, which was intended to increase the closing bid price of the Common Stock above $1.00 per share, reduces the number of shares of outstanding Common Stock from approximately 23 million shares to approximately 575,000 shares.
DBGI shares were up 17.8 percent on Monday, August 3, to close at $17.80 for the day.
Digital Brands Group has retained Roth Capital Partners as its financial advisor to assist in this review.
Image courtesy Digital Brands Group
