secwatch.observer — SEC 8-K summary
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Issuer:     Digital Brands Group, Inc. (DBGI)
CIK:        0001668010
Form:       8-K
Filed at:   2023-06-27T23:59:59+00:00
Accession:  0001104659-23-075232
Event type: other_material
Sentiment:  positive
Materiality: 0.85
Item codes: 1.01, 1.02, 2.01, 3.02, 5.03, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

DBGI settles H&J dispute, cancels $10.5M liability, converts $5.76M debt to equity
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- Paid $229K cash + issued 1,952,580 shares at $0.717 to settle H&J dispute; transferred H&J membership interest back to seller.
- Norwest Venture Partners waived true-up rights, eliminating a ~$10.5M contingent liability.
- Issued 5,761 shares of Series C Convertible Preferred Stock ($1,000/share) to Sundry Investors in exchange for cancellation of $5,759,178 in promissory notes.
- Series C convertible at $0.717 per common share, carries redemption at 112% of stated value, and ranks senior to common stock.
- Pro forma effect: net loss for Q1 2023 improved from $(6.1M) to $(5.8M); shares outstanding increased from 5.67M to 7.62M.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1668010/000110465923075232/0001104659-23-075232-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1668010/000110465923075232/tm2319630d1_8k.htm
  HTML page:      https://secwatch.observer/filing/0001104659-23-075232

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer