Digital Brands Group (DBGI) announced Friday it will implement a 1-for-40 reverse stock split to bring its share price above the $1.00 minimum required by Nasdaq. The move is set to take effect on July 24, 2026. The company's stock closed at $0.62 in post-market trading, down 2.5%.
Reverse split details
The reverse split will reduce the number of outstanding shares from approximately 23 million to about 575,000, based on the current share count. The par value remains unchanged at $0.0001 per share. The company stated the action is intended to raise the closing bid price above $1.00, allowing it to maintain its Nasdaq listing.
Market context
Digital Brands Group, a portfolio of luxury and lifestyle brands, has seen its stock price decline sharply, triggering non-compliance with Nasdaq's minimum bid price rule. The reverse split is a common tactic for companies facing delisting, though it does not change the underlying market capitalization. The company has not announced any other strategic changes alongside the split.