Why Digital Brands Group (DBGI) Stock Is Down 35% Today
Why Digital Brands Group (DBGI) Stock Is Down 35% Today
Investors may also view the need to raise capital at such a low price as a signal that the company is financially strained, which can reduce confidence in its stability and future profitability.Digital Brands Group Inc (NASDAQ:DBGI) shares are trading lower by 35% to 10 cents Tuesday afternoon after the company announced a public offering of 30 million shares of common stock and/or pre-funded warrants at 10 cents per share, aiming to raise $3 million before fees.
周二下午，数字品牌集团公司（纳斯达克股票代码：DBGI）股价下跌35％，至10美分，此前该公司宣布以每股10美分的价格公开发行3000万股普通股和/或预筹认股权证，目标是在费用前筹集300万美元。
The net proceeds will support working capital, general corporate needs, and debt repayment. The offering is set to close on October 30, pending standard conditions.
净收益将用于支持营运资金、一般公司需求和债务偿还。此次发行定于10月30日结束，但尚待标准条件。
Why This Matters: The stock is falling because issuing 30 million new shares at a low price of $0.10 increases the total share count, diluting the value of existing shares, especially as the offering price is lower than recent trading prices.
为什么这很重要：该股之所以下跌，是因为以0.10美元的低价发行3000万股新股增加了总股数，稀释了现有股票的价值，尤其是在发行价格低于近期交易价格的情况下。
Investors may also view the need to raise capital at such a low price as a signal that the company is financially strained, which can reduce confidence in its stability and future profitability.
投资者还可能将需要以如此低的价格筹集资金视为该公司财务紧张的信号，这可能会降低对其稳定性和未来盈利能力的信心。
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According to data from Benzinga Pro, DBGI has a 52-week high of $12.80 and a 52-week low of $0.09.
根据Benzinga Pro的数据，DBGI的52周高点为12.80美元，52周低点为0.09美元。
