secwatch.observer — SEC 8-K summary
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Issuer:     Digital Brands Group, Inc. (DBGI)
CIK:        0001668010
Form:       8-K
Filed at:   2024-11-01T23:59:59+00:00
Accession:  0001493152-24-043355
Event type: regulatory
Sentiment:  negative
Materiality: 0.85
Item codes: 3.01
LLM model:  deepseek-v4-flash:cloud@v2

Digital Brands Group receives Nasdaq delisting notice over improper share issuance and bid price
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- 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.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1668010/000149315224043355/0001493152-24-043355-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1668010/000149315224043355/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-24-043355

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