secwatch.observer — SEC 8-K summary
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Issuer:     Digital Brands Group, Inc. (DBGI)
CIK:        0001668010
Form:       8-K
Filed at:   2024-10-21T23:59:59+00:00
Accession:  0001493152-24-041814
Event type: other_material
Sentiment:  negative
Materiality: 0.75
Item codes: 3.02
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1668010/000149315224041814/0001493152-24-041814-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1668010/000149315224041814/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-24-041814

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