Digital Brands Group erroneously issued 1.3M shares violating Nasdaq rule; shares being cancelled

Digital Brands Group, Inc.

Issued 1,311,345 shares of common stock to a note holder upon conversion of promissory note between Oct 3-15, 2024.
Issuance violated Nasdaq Listing Rule 5635(d) requiring stockholder approval for conversions exceeding 19.9% of pre-transaction shares.
Company notified note holder to return shares; cancellation will reduce outstanding shares to approximately 8,104,438.
Communicating with Nasdaq regarding the erroneous issuance and remediation actions.
As of Oct 16, 2024, issued and outstanding common stock was 9,415,783 shares before cancellation.

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