Digital Brands Group (NASDAQ: DBGI) Enters into Financial Agreements with 1800 Diagonal Lending LLC and MavDB Consulting LLC

Digital Brands Group, Inc. recently released information regarding financial agreements made with 1800 Diagonal Lending, LLC and MavDB Consulting, LLC. On January 16, 2025, the Company, a Delaware corporation, entered a securities purchase agreement with 1800 Diagonal Lending, LLC, resulting in a loan to the Company amounting to an aggregate principal sum of $121,900.00. The loan, evidenced by a promissory note, includes an original issue discount of $15,900.00 and requires nine payments of $15,169.77, with a one-time interest charge of twelve percent. The initial payment is due on February 16, 2025, with subsequent monthly payments until the maturity date on October 16, 2025. Upon default, the outstanding balance may be converted into Digital Brands Group’s common stock at a specified conversion price.

Additionally, on January 21, 2025, the Company entered into a vendor agreement with MavDB Consulting LLC for various services over a five-year period, with a fee of $3,000,000. The Vendor opted to receive pre-funded warrants for the purchase of 2,068,965 shares of Digital Brands Group’s common stock instead of the cash fee. The pre-funded warrants have an initial exercise price of $0.01 per share and will expire in five years.

Furthermore, on January 22, 2025, the Company issued a promissory note of $260,000.00 to Joshua Bartch. This loan carries an original issue discount of $60,000.00, resulting in a purchase price of $200,000.00, with a maturity date set for April 22, 2025. In the event of default, the outstanding balance becomes immediately due and payable along with default interest at sixteen percent per annum.

These financial transactions were detailed in a Form 8-K filed with the Securities and Exchange Commission on January 16, 2025. The Company highlighted its intention to use the proceeds for general working capital purposes. As per the filing, Digital Brands Group claimed an exemption from the registration requirements of the Securities Act for the private placements under Section 4(a)(2) and/or Regulation D, citing the involvement of accredited investors and measures taken to restrict securities transfer.

The Company emphasized that the descriptions of these transactions do not constitute a complete portrayal and advised referencing the detailed agreements attached as exhibits to the Form 8-K for comprehensive information.

In light of these recent financial developments, Digital Brands Group, Inc. continues to bolster its financial position and strategic partnerships, aiming to enhance its operational capabilities and further its market presence.

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.

About Digital Brands Group

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.