Digital Brands Group Inc (DBGI)

[befast]

Yes but in the process 2 million+ new warrants were registered at an exercise price of 2.88. If or when exercised they will put tremendous pressure on the stock price and will dilute the stock further. You can kiss the 1.7 million OS goodbye with 100%+ dilution, so your 10$ price target might have to be cut in half. Once again, Hil did not walk the talk and retail will get penalized. If he was that adamant the stock would go higher following Q1 results release, he could have waited a couple of weeks, since the 9+ $ exercise price might have been on the money (and the equity threshold would have been met). So it looks he is not that optimistic after all, because the timing of the announcement is quite counter intuitive. On top of that, why get 3.2 millions in working capital when you turn cash flow positive and can finance the store openings with free cash flow? The only positive would be if he is looking at new acquisition with the proceeds. Just by coincidence after hours price climbed right at 2.89, just to allow exercise before the Q1 results?