Digital Brands Inks Debt-For-Equity Exchange With Lendor
Digital Brands Group Inc (NASDAQ: DBGI) has entered into a debt-for-equity exchange agreement with its senior lender, Black Oak Capital.
Under the agreement, Digital Brands will repay and retire about $6.25 million in principal debt.
Under the agreement, investors agree that in no event convert in any calendar month more than the greater of $500,000 of shares or more than 10% of the aggregate trading volume of the company's stock as reported by Nasdaq.
Under the agreement, the company has authorized a new series of convertible preferred stock of the company designated as series A convertible preferred stock.
"This debt exchange significantly benefits our balance sheet and will allow for growth and acquisition opportunities that were not previously possible," said CEO Hil Davis.
Digital Brands held $0.81 million in cash and equivalents as of June 30, 2022.
Price Action: DBGI shares are trading higher by 4.04% at $0.0978 on the last check Monday.
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