SplitJul 22, 2026, 04:56 PM
Digital Brands Group Announces 1-for-40 Reverse Stock Split
AI Summary
Digital Brands Group, Inc. announced a 1-for-40 reverse stock split of its common stock, effective July 24, 2026. The primary goal of this action is to increase the company's stock price above $1.00 per share to maintain compliance with Nasdaq listing rules. As a result, outstanding shares will decrease from approximately 23 million to 575,000, and authorized shares will be reduced from 1 billion to 25 million.
Key Highlights
- Board approved a 1-for-40 reverse stock split of common stock.
- Reverse stock split becomes effective on July 24, 2026, at 12:01 a.m. ET.
- Purpose is to increase closing bid price above $1.00 for Nasdaq compliance.
- Outstanding shares reduced from approximately 23 million to 575,000.
- Authorized shares reduced from 1,000,000,000 to 25,000,000.
- Proportionate adjustments made to equity awards, warrants, and convertible preferred stock.
- Fractional shares will be rounded up to the nearest whole share.
Price Impact
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