NASDAQ : DBGI
Market Awareness Program Case Study
Synopsis
A market awareness program presents numerous immediate as well as long-term benefits to the company. The program helps to tell the our clients story to millions of potential investors who otherwise have no idea the company exists. The program greatly increases trading volume, fixes the disconnect between the company’s intrinsic value and its stock price, removes selling overhangs, helps to defend the stock from short attacks, fixes the chart, positions the stock appropriately for an equity raise and creates currency for stock acquisitions.
Benefits
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NASDAQ : DBGI
History
Digital Brands Group, Inc. (NASDAQ: DBGI) came public on May 18, 2021 by raising $10mm in a Nasdaq IPO lead by Kingswood Capital Markets.
The Company is an apparel company that sells both direct to consumer and wholesale by focusing on a customer’s “closet share” and leveraging their data and personalized customer cohorts to create targeted content.
DBGI, having heard of what Trending Equities has accomplished in the past and realizing the importance of a liquid stock currency, decided to engage the firm for IR and market awareness program right out of the gates.
Despite the fact the IPO was a unit deal (which do not trade very well), the stock traded 174 million shares or 5.8 million shares per day.
As a result, despite the fact that the IPO was a unit deal priced at $4.15 (which typically do not trade very well), the stock traded 174mm shares since its IPO on May 18, or 5.8mm
shares per day. More importantly, even though the stock did break price as soon as the trading began and traded down 33% to $2.80 on the first trading day, as a result of a well-planned and funded marketing campaign the stock price rebounded the very next day and closed just 2.4% below its IPO price while hitting an intra-day high of $5.10 and trading 34mm share that day.
NASDAQ : DBGI
Performance
DGBI realizes the importance of having a liquid stock since the Company’s goal is to grow through acquisitions by acquiring quality brands that can be sourced, developed, and sold at high margins; and it has already been very active in this regard.
The Company acquired Harper and Jones, LLC., a custom and made-to-measure suiting and sportswear company that offers full-closet customization options, on May 18, simultaneously with its IPO.
On June 15, 2021, DBGI announced an LOI to acquire Elevated Basics Brand Stateside, a privately-owned global elevated basics brand. In addition, on June 24, 2021, Digital Brands Group announced channel expansion into Amazon Marketplace, which should further grow the Company’s sales.
The Company hit an intraday high of $7.47 on June 24 while trading 74mm shares that day. Given the improved stock price and extremely liquid stock which traded 82mm shares in the last two days of trading, DBGI has not only became a well-known Nasdaq listed company but is also well positioned to either complete more acquisitions using its stock as currency or to potentially
look for a follow-on offering which would be done above the IPO price.
Comparing DBGI stock performance on both volume and price to other companies that have recently IPO’ed on Nasdaq via a unit offering, it is immediately clear that these feats could not have been accomplished without a well-planned and well-executed market awareness campaign which Trending Equities is known for.
Analysis
The TE Difference
The chart below illustrates the daily price and volume action of the stock after the IPO with a well-planned marketing awareness campaign executed by Trending Equities. The chart clearly illustrates the immediate bounce of the stock on huge volume on the second day after the IPO as well as gradual price and volume improvements after that. Finally the chart clearly shows the recent increase in both volume and stock price, trading 82mm shares in the last two days of trading while touching an intra-day high of $7.47 (an 80% improvement over the IPO price) on June 24, 2021, and closing at $5.49 (32% above IPO price) on June 25, 2021.
