Digital Brands Group Announces Completion of Convertible Note Financing


Posted: October 5, 2021 at 8:00 p.m. CDT|Update: 2 hours ago

AUSTIN, Texas, October 5, 2021 / PRNewswire / – Digital Brands Group, Inc. (“DBG” or the “Company”) (NASDAQ: DBGI), a leading digital holding company, today announced that it has raised gross proceeds of $ 1,500,000 by issuing a senior secured convertible promissory note (the “Note”) to FirstFire Global Opportunities Fund, LLC, a Delaware limited liability company (“FirstFire”).

The banknote, with a principal amount of $ 1,575,000, bears interest at the rate of 6% per annum and is due and payable 18 months from the date of issue, unless converted earlier. The Note is convertible at the option of FirstFire into common shares of the Company at a conversion price (the “Conversion Price”) which is the lesser of (i) 130% of the closing price on the last trading day prior to issuance. and (ii) 90% of the average of the two lowest VWAPs during the period of five consecutive trading days preceding the delivery of the conversion notice. FirstFire is not permitted to submit conversion notices within a thirty day period having conversion amounts equivalent, in aggregate, to more than $ 500,000. If the conversion price indicated in a conversion notice is less than $ 3.00 per share, the Company, in its sole discretion, may elect to pay the applicable conversion amount in cash rather than issue common shares.

The offer and sale of the securities by the Company in connection with the above transaction have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and have not been registered or qualified under the securities laws of a state, and therefore may not be offered or sold absent registration under the Securities Act or an applicable exemption from those registration requirements , and a registration or qualification and under applicable state securities laws or “Blue Sky” laws or an applicable exemption from such registration or qualification requirements.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, and there will be no sale of securities in any State in which such an offer, solicitation or sale would be illegal before ‘registration or qualification. under the securities laws of that state.

About Digital Brands Group

We offer a wide variety of apparel through many brands, both direct to consumer and wholesale. We created a business model derived from our foundation as a digital native vertical brand. The first digital native brands are brands that were founded as e-commerce-focused businesses, where online sales make up a significant percentage of net sales, although they often subsequently develop into online sales channels as well. Wholesale or direct retail., Unlike typical e-commerce brands, as a digitally native vertical brand, we control our own distribution, sourcing directly from our third-party manufacturers and selling directly to the end consumer. We focus on owning the customer’s “closet share” by leveraging their data and purchase history to create personalized, targeted content and research that specific cohort of customers. We’ve strategically expanded to be an omnichannel brand offering these styles and content not only online, but in select wholesale and retail storefronts. We believe this approach provides us with opportunities to successfully generate Lifetime Value (“LTV”) while increasing the growth of new customers.

Digital Brands Group, Inc.

Hil davis, CEO


Telephone: (800) 593-1047

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SOURCE Digital Brands Group, Inc.

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