Direct Digital enters strategic $20M equity reserve facility with New Circle

Direct Digital (DRCT) Holdings announced the company has entered into a $20M Equity Reserve Facility with New Circle Principal Investments LLC, an affiliate of New Circle Capital. Under the agreement, at our sole election, New Circle will purchase, from time to time, shares of the company’s Class A common stock up to an aggregate of $20M over a period of 36 months, subject to the conditions in the agreement. The proceeds of these sales may be used for general corporate purposes. The company anticipates using such proceeds to reduce debt obligations, strengthen the overall balance sheet, and drive key growth initiatives.