Loan & DebtJul 24, 2026, 12:41 PM
Digital Brands Group Secures $3.5M Convertible Note, $100M ELOC
AI Summary
Digital Brands Group, Inc. entered into a Securities Purchase Agreement to issue an unsecured convertible promissory note with a principal amount of $3,529,412, based on a $3,000,000 subscription. The proceeds will be used for general working capital and to repay certain liabilities. Concurrently, the company established an Equity Line of Credit (ELOC) allowing it to sell up to $100,000,000 of common stock to the same purchaser over a three-year period. Aegis Capital Corp. was engaged as the placement agent for these transactions, earning a 3.0% commission.
Key Highlights
- Unsecured convertible promissory note issued for $3,529,412 principal amount.
- Aggregate subscription amount for the note was $3,000,000.
- Note matures on January 23, 2027, with scheduled repayments.
- Equity Line of Credit (ELOC) allows sale of up to $100,000,000 in common stock.
- ELOC commitment period ends July 23, 2029, or upon full purchase.
- Placement agent, Aegis Capital Corp., received a 3.0% commission on the $3,000,000 subscription.
- Default interest rate on the note is 20% per annum.
- Note conversion price is 90% of the lowest closing price over five trading days.
Price Impact
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