---
schema_version: "secwatch.filing_event.v1"
accession: "0001104659-23-045079"
form_type: "8-K"
ticker: "DBGI"
cik: "0001668010"
company_name: "Digital Brands Group, Inc."
filed_at: "2023-04-13T23:59:59+00:00"
generated_at: "2026-06-17T02:41:23.321601+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# Digital Brands Group issues $2.2M in 20% OID notes due Sep 2023 with onerous conversion terms

## Summary
- Issued $2,208,750 aggregate principal of 20% OID notes for $1,800,000 subscription amount to multiple investors.
- Notes mature September 30, 2023; prepayment allowed without penalty.
- If not repaid by maturity, principal increases to 120%, interest at 20% annually, and notes become convertible at closing price.
- Upon default conversion, if shareholder approval not obtained, CEO must personally guarantee repayment and pledge shares.
- Require 50% repayment of remaining balance if subsequent financing < $7.5M, full repayment if ≥ $7.5M.

## SEC filing metadata
- accession: 0001104659-23-045079
- form_type: 8-K
- ticker: DBGI
- cik: 0001668010
- company_name: Digital Brands Group, Inc.
- filed_at: 2023-04-13T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 1.01, 3.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1668010/000110465923045079/0001104659-23-045079-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1668010/000110465923045079/tm2312638d1_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001104659-23-045079
- JSON: https://secwatch.observer/filing/0001104659-23-045079.json
- Plain text: https://secwatch.observer/filing/0001104659-23-045079.txt

## Key facts
- Material Agreements
  Digital Brands Group, Inc. entered into Securities Purchase Agreement with various purchasers valued at $2,208,750 (effective 2023-04-07).
  - Action: entry
  - Agreement: notes offering
  - Counterparty: various purchasers
  - Value: $2,208,750
  - Effective: 2023-04-07
  source text: On April 7, 2023, Digital Brands Group, Inc. (the “Company”) and various purchasers (the “Investors”) executed a Securities Purchase Agreement (the “SPA”) whereby the Investors purchased from the Company 20% Original Issue Discount (the “OID”) promissory notes (the “Notes”) in the aggregate principal amount of $2,208,750 (with an aggregate subscription amount of $1,800,000).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1668010/000110465923045079/0001104659-23-045079-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.