secwatch.observer — SEC 8-K summary
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Issuer:     Digital Brands Group, Inc. (DBGI)
CIK:        0001668010
Form:       8-K
Filed at:   2023-04-13T23:59:59+00:00
Accession:  0001104659-23-045079
Event type: debt
Sentiment:  negative
Materiality: 0.75
Item codes: 1.01, 3.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1668010/000110465923045079/0001104659-23-045079-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1668010/000110465923045079/tm2312638d1_8k.htm
  HTML page:      https://secwatch.observer/filing/0001104659-23-045079

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