DBGI announces debt-for-equity swap with its lead lender

AUSTIN, TX, October 3, 2022 /PRNewswire/ — Digital Brands Group, Inc. (“DBG”) (Nasdaq: DBGI), a curated collection of luxury lifestyle and digital-first brands, today announced that the company has entered into a debt-for-equity swap agreement with its lead lender, Black Oak Capital, to repay and remove about $6.25 million principal of the Company’s debt.

“This debt swap puts DBG’s balance sheet in a strong position for continued acquisitions and growth. We are delighted to be a shareholder and believe it creates significant shareholder value in the short and long term,” said Kurt HansenPartner and Managing Director of Black Oak Capital.

Under the Agreement, Investors agree that in no event shall Investors as a whole convert in any calendar month more than the greater of (i) $500,000 of Shares (measured by the number of ordinary shares underlying the Shares to be converted multiplied by the conversion price per Share) or (ii) Shares whose underlying ordinary shares represent more than 10% of the total volume of transactions of the company’s common stock as reported by Nasdaq.

“We are delighted to have Black Oak Capital as a long-term shareholder. This debt swap significantly benefits our balance sheet and will enable growth and acquisition opportunities not previously possible,” said Hill DavisCEO of Digital Brands Group.

Pursuant to the agreement, the Company has authorized a new series of convertible preferred shares of the Company designated as Series A Convertible Preferred Shares, par value $0.0001 per share, the terms of which are set forth in the designation certificate for such series of Preferred Shares, which Series A Preferred Shares will be convertible into Common Shares.

Forward-looking statements

Certain statements included in this release are “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs regarding future events affecting DBG and therefore involve various risks and uncertainties. You can identify these statements by the fact that they use words such as “will”, “anticipate”, “estimate”, “expect”, “should” and “may” and other words and terms of similar meaning or use of the future tense. dates, however, the absence of such words or similar expressions does not mean that a statement is not forward-looking. All statements regarding DBG’s plans, objectives, projections and expectations regarding DBG’s operations or financial performance, and any assumptions relating thereto, are forward-looking statements. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied by the forward-looking statements. DBG undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. These forward-looking statements, including the Company’s ability to regain and/or maintain compliance with applicable continuous listing requirements for the Nasdaq Capital Markets or otherwise achieve the milestones included in its compliance plan with the Nasdaq, are based on information currently available to DBG and its current plans or expectations and are subject to a number of uncertainties and risks that could materially affect current plans. Risks relating to DBG’s business are described in detail in DBG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and in DBG’s other periodic and current reports filed with the Securities and Exchange Commission. .

About the Digital Brands Group
We offer a wide variety of apparel across many brands, both direct to consumer and wholesale. We focus on owning the customer’s “closet share” by leveraging their data and purchase history to create personalized targeted content and seek out that specific customer cohort.

Digital Brands Group, Inc. Company Contact
Hill DavisCEO
E-mail: [email protected]
Phone: (800) 593-1047

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SOURCE Digital Brands Group, Inc.

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