- Digital Brands Group Inc 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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