Digital Brands Group Extends Settlement Agreement Final Payment Deadline – Pays Off Convertible Notes

Digital Brands Group, Inc. (NASDAQ: DBGI) recently filed an 8-K form with the Securities and Exchange Commission on November 1, 2024, detailing the extension of the final payment due date in its Settlement Agreement with various investors. The company had entered into a securities purchase agreement in April 2023, resulting in the issuance of promissory notes to investors. Subsequently, the company exchanged these notes for replacement ones in October 2023.

The original repayment terms required the company to make a Final Payment of $1,289,668.37 by September 30, 2024, to settle all obligations. However, due to amendments in the agreement, the Final Payment deadline was extended to October 31, 2024, and further extended to November 4, 2024, in a second amendment with the investors. On the latter date, Digital Brands Group successfully made the Final Payment, thereby fulfilling its financial commitments under the agreement.

Additionally, on November 7, 2024, the company issued a press release announcing the repayment of outstanding convertible notes totaling $1.3 million. With this payment, Digital Brands Group has effectively retired all debt securities convertible into its common stock. The move marks a strategic decision to eliminate debt overhang and focus on the company’s growth trajectory.

The press release highlighted that in 2024 alone, Digital Brands Group has retired over $3.5 million in debt, including the recently settled convertible notes. This step underscores the company’s commitment to strengthening its financial position and streamlining its balance sheet for future strategic initiatives.

Digital Brands Group, a curated collection of luxury lifestyle brands, has been proactively managing its financial obligations to drive sustained growth. By clearing convertible notes and settling outstanding payments, the company aims to enhance investor confidence and position itself for continued success in the market.

Please note that the details provided are based on the company’s official filings and announcements. For a comprehensive overview of the matter, interested parties can refer to the original 8-K filing and related disclosures on the SEC’s website.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Digital Brands Group’s 8K filing here.

Digital Brands Group Company Profile

Digital Brands Group, Inc engages in the provision of apparel products under various brands on direct-to-consumer and wholesale basis. It operates through DSTLD, Bailey, H&J, Stateside, and Sundry segments. The company designs, manufactures, and sells women's apparel, such as tops, sweaters, dresses, jumpsuits, bottoms, sets, jackets, rompers, suiting, sportswear, shirts, jackets, pants, shorts, polos, T-shirts, skirts, athleisure bottoms, denims, and other accessory products, as well as suiting for men.