AUSTIN, Texas, Oct. 5, 2021 /PRNewswire/ -- Digital Brands
Group, Inc. ("DBG" or the "Company") (NASDAQ: DBGI), a
digitally first portfolio company, today announced that is has
raised gross proceeds of $1,500,000
through the issuance of a senior secured convertible promissory
note (the "Note") to FirstFire Global Opportunities Fund, LLC, a
Delaware limited liability company
("FirstFire").
The Note, in the principal amount of $1,575,000, bears interest at 6% per annum and is
due and payable 18 months from the date of issuance, unless sooner
converted. The Note is convertible at the option of FirstFire into
shares of the Company's Common Stock at a conversion price (the
"Conversion Price") which is the lesser of (i) 130% of the closing
price on the last trading day prior to the issue date, and (ii) 90%
of the average of the two lowest VWAPs during the five consecutive
trading day period preceding the delivery of the notice of
conversion. FirstFire is not permitted to submit conversion notices
in any thirty day period having conversion amounts equaling, in the
aggregate, in excess of $500,000. If the Conversion Price set forth
in any conversion notice is less than $3.00 per share, the Company, at its sole option,
may elect to pay the applicable conversion amount in cash rather
than issue shares of its Common Stock.
The offer and sale of the securities by the Company in the above
transaction has not been registered under the Securities Act of
1933, as amended (the "Securities Act"), and has not been
registered or qualified under any state securities laws, and
therefore may not be offered or sold absent registration under the
Securities Act or an applicable exemption from such registration
requirements, and registration or qualification and under
applicable state securities or "Blue Sky" laws or an applicable
exemption from such registration or qualification requirements.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the securities, nor shall there be
any sale of the securities in any state in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of such state.
About Digital Brands Group
We offer a wide variety of apparel through numerous brands on a
both direct-to-consumer and wholesale basis. We have created a
business model derived from our founding as a digitally
native-first vertical brand. Digital native first brands are brands
founded as e-commerce driven businesses, where online sales
constitute a meaningful percentage of net sales, although they
often subsequently also expand into wholesale or direct retail
channels., Unlike typical e-commerce brands, as a digitally native
vertical brand we control our own distribution, sourcing products
directly from our third-party manufacturers and selling directly to
the end consumer. We focus on owning the customer's "closet share"
by leveraging their data and purchase history to create
personalized targeted content and looks for that specific customer
cohort. We have strategically expanded into an omnichannel brand
offering these styles and content not only on-line but at selected
wholesale and retail storefronts. We believe this approach allows
us opportunities to successfully drive Lifetime Value ("LTV") while
increasing new customer growth.
Digital Brands Group, Inc. Company Contact
Hil Davis, CEO
Email: invest@digitalbrandsgroup.co
Phone: (800) 593-1047
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SOURCE Digital Brands Group, Inc.