Life Style

US Digital Brand Group Completes Acquisition of Stateside

Digital Brand Group (DBG) has completed the acquisition of its privately owned elevated basic brand, Stateside, for a total base purchase price of $ 10,000,000. As a result of the transaction, Stateside became a wholly owned subsidiary of the company. DBG offers apparel through a number of brands, both consumer and wholesale.

The purchase price was evenly split between $ 5,000,000 million in common stock and $ 5,000,000 in cash, based on a volume-weighted average of the closing 30 trading days of the company’s stock price. The company announced that it had generated a total revenue of $ 5,000,000 by issuing promissory notes for senior-backed convertible bonds to Puerto Rico’s limited liability company, Oasis Capital. The company said in a media statement that the proceeds were used to fund the above US acquisition.

Digital Brand Group (DBG) has completed the acquisition of its privately owned elevated basic brand, Stateside, for a total base purchase price of $ 10,000,000. As a result of the transaction, Stateside became a wholly owned subsidiary of the company. DBG offers apparel through a number of brands, both consumer and wholesale.

The note has a principal of $ 5,265,000, an annual interest rate of 6%, and will be due within 18 months of the issue date unless converted earlier. This note is an Oasis Capital option that allows you to convert to common stock of the company at the lower conversion price of $ 3.601, with an average of 90 of the two minimum VWAPs during the period of five consecutive trading days prior to delivery. %is. Of the conversion notice. Oasis is not allowed to submit conversion notices equal to a total conversion amount of more than $ 500,000 over a 30-day period.

The company announced that it has signed a stock purchase agreement with Oasis Capital. Under the purchase agreement, the company reserves the right to sell up to $ 17.5 million in common stock to Oasis Capital over a 24-month period if the terms of the share purchase agreement, including the validity of the Resale Registration Statement, are met. The company submits before December 31, 2021. The company controls the timing and amount of the sale to Oasis Capital, which is obliged to purchase in accordance with the share purchase agreement. According to DBG, stock purchase agreements allow companies to fund their needs in a more convenient and cost-effective way.

“Stateside is expected to increase DBG earnings and earnings per share in both the third quarter and fiscal year of 2021. In addition, the Stateside brand is expected to promote meaningful short-term and long-term shareholder value. The acquisition of the Stateside brand is accelerating. We will examine DBG’s recent IPO and vision and strategy to expand its brand portfolio, revenue and cash flow through the acquisition. With the establishment of this equity line, The future financial road for digital brands has begun to be really smooth. This equity line eases urgent needs. DBG Chief Executive Officer Hill Davis said:

Fiber2Fashion News Desk (GK)



US Digital Brand Group Completes Acquisition of Stateside

Source link US Digital Brand Group Completes Acquisition of Stateside

Back to top button