The move aims to boost DBGI’s share price above $1.00 to maintain Nasdaq compliance after trading near $0.62.
Digital Brands Group (DBGI) will execute a 1-for-40 reverse stock split of its common stock, reducing outstanding shares from approximately 23 million to 575,000. The split is set to take effect on July 24, 2026, and targets a closing bid price above $1.00 per share to meet Nasdaq listing requirements.
The company’s stock currently trades at $0.62, below the exchange’s minimum threshold. A reverse split consolidates shares to increase their nominal value without altering market capitalization. DBGI previously faced delisting risks due to prolonged low share prices.
Shares fell 2.5% to $0.62 in post-market trading following the announcement.