DBG Compliant with Nasdaq Listing Requirements

Rhea-AI Summary

Digital Brands Group, Inc. (NASDAQ: DBGI) announced on January 17, 2023, that it is compliant with all Nasdaq Capital Market listing requirements, including the minimum stockholders' equity requirement. This follows a formal notification from the Nasdaq Hearings Panel. However, the company will undergo a 12-month monitoring period under Nasdaq Listing Rule 5815(d)(4)(A). If DBGI fails to meet continued listing requirements during this period, it may need to submit a compliance plan directly to the Panel without prior opportunity for presentation to Nasdaq's Listing Qualifications Staff.

Positive

• DBGI has demonstrated compliance with Nasdaq listing requirements.

Negative

• The company is subject to a 12-month monitoring period, which could affect its listing status.

AUSTIN, Texas, Jan. 19, 2023 /PRNewswire/ -- Digital Brands Group, Inc. ("DBG")  (NASDAQ: DBGI), a curated collection of luxury lifestyle, digital-first brands, today announces that on January 17, 2023, the Nasdaq Hearings Panel (the "Panel") formally notified the Company that it has evidenced compliance with all applicable requirements for continued listing on The Nasdaq Capital Market, including the minimum stockholders' equity requirement. The Company will remain subject to a 12-month monitoring period however, as described in Nasdaq Listing Rule 5815(d)(4)(A) (the "Panel Monitor"). In the event the Company fails to satisfy a continued listing requirement during the Panel Monitor, the Company will not be provided with the opportunity to present a compliance plan to Nasdaq's Listing Qualifications Staff, which might otherwise be available under the Nasdaq Listing Rules, but would instead submit such plan directly to the Panel.

Forward-looking Statements

Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws, including statements regarding the acquisition and the ability to meet the closing conditions required to complete the acquisition. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting DBG and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as "will," "anticipate," "estimate," "expect," "should," and "may" and other words and terms of similar meaning or use of future dates, however, the absence of these words or similar expressions does not mean that a statement is not forward-looking. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. DBG undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Potential risks and uncertainties that could cause the actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: : (i)  the ability to implement business plans, forecasts, and other expectations and identify and realize additional opportunities, including the ability to access the capital markets (ii) risks arising from the widespread outbreak of an illness or any other communicable disease, or any other public health crisis, including the coronavirus (COVID-19) global pandemic; (iii) the level of consumer demand for apparel and accessories; disruption to DBGs distribution system; the financial strength of DBG's customers; fluctuations in the price, availability and quality of raw materials and contracted products; disruption and volatility in the global capital and credit markets and global supply chain;  (iv) DBG's response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior; intense competition from online retailers; manufacturing and product innovation; increasing pressure on margins; DBG's ability to implement its business strategy; (v) DBG's ability to grow its wholesale and direct-to-consumer businesses; retail industry changes and challenges; (vi)DBG's and its vendors' ability to maintain the strength and security of information technology systems; the risk that DBG's facilities and systems and those of our third-party service providers may be vulnerable to and unable to anticipate or detect data security breaches and data or financial loss; (viii) DBG's ability to properly collect, use, manage and secure consumer and employee data; (ix)stability of DBG's manufacturing facilities and foreign suppliers; continued use by DBG's suppliers of ethical business practices; DBG's ability to accurately forecast demand for products; continuity of members of DBG's management; (x) DBG's ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; (xi) DBG's ability to execute and integrate acquisitions; changes in tax laws and liabilities; legal, regulatory, political and economic risks; (xii) adverse or unexpected weather conditions; (xv) DBG's indebtedness and its ability to obtain financing on favorable terms,; and  (xiii) climate change and increased focus on sustainability issues. More information on potential factors that could affect DBG's financial results is included from time to time in DBG's public reports filed with the SEC, including DBG's Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q, and Forms 8-K filed or furnished with the SEC.

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

SOURCE Digital Brands Group, Inc.

Related Links

https://www.digitalbrandsgroup.co

https://ir.digitalbrandsgroup.co 

View original content:https://www.prnewswire.com/news-releases/dbg-compliant-with-nasdaq-listing-requirements-301725501.html

SOURCE Digital Brands Group, Inc.

FAQ

What recent compliance status update did Digital Brands Group (DBGI) receive from Nasdaq?

Digital Brands Group was notified on January 17, 2023, that it complies with all Nasdaq listing requirements.

What are the implications of the 12-month monitoring period for DBGI?

DBGI must maintain compliance with Nasdaq listing requirements over the next 12 months; failure to do so could lead to direct submission of a compliance plan to the Nasdaq Hearings Panel.

When did the Nasdaq Hearings Panel notify DBGI about its compliance?

The notification regarding compliance was received on January 17, 2023.