regulatory
confidence high
sentiment negative
materiality 0.85
Digital Brands Group receives Nasdaq delisting notice over improper share issuance and bid price
Digital Brands Group, Inc.
- Nasdaq Staff determined non-compliance with Rule 56353(d) due to erroneous issuance of 1,311,345 shares without shareholder approval.
- Delisting notice also cites previously disclosed minimum bid price deficiency under Rule 5550(a)(2).
- Company plans to address both issues at a previously scheduled Nasdaq Hearings Panel hearing.
- Erroneous shares were issued to a note holder upon conversion of a promissory note from October 2023.
- The improper issuance violated the note's terms and Nasdaq rule limiting discounted issuances to 19.9% of outstanding shares.