Corporate ActionJul 17, 2026, 05:31 PM
Digital Brands Group Amends Series D Floor Price, Adds Lock-Up
AI Summary
Digital Brands Group, Inc. entered into a Lock-Up and Leak-Out Agreement with the holder of a majority of its Series D Convertible Preferred Stock. This agreement, which includes a 180-day lock-up period with a 3% daily leak-out provision, was a material inducement for the Company to amend the "Floor Price" definition for its Series D Convertible Preferred Stock. The revised Floor Price is now set at 20% of the lower of the closing price or the five-day average closing price immediately preceding the amendment date.
Key Highlights
- Amended Series D Convertible Preferred Stock "Floor Price" definition.
- New Floor Price is 20% of lower of recent closing or 5-day average price.
- Entered Lock-Up and Leak-Out Agreement with majority Series D preferred stock holder.
- Agreement imposes 180-day lock-up on Common Stock beneficially owned by the holder.
- Leak-out provision allows sales up to 3% of daily trading volume during lock-up.
- Lock-Up Agreement is an inducement for the Floor Price reset.
Price Impact
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