DBG Pays Off $1.3 Million in Convertible Notes, which Retires All of the Company’s Convertible Notes

Rhea-AI Summary

Digital Brands Group (NASDAQ: DBGI) has announced the payment of $1.3 million in outstanding convertible notes, effectively retiring all debt securities that were convertible into the company's common stock. This development marks a significant step in improving the company's balance sheet and removing debt overhang. In 2024, DBG has paid off over $3.5 million in total debt, demonstrating its commitment to debt reduction and focusing on company growth.

Positive

• Paid off $1.3 million in convertible notes
• Complete elimination of all convertible debt securities
• Total debt reduction of $3.5 million in 2024
• Improved balance sheet structure

Negative

• None.

Insights

Financial Analyst

The retirement of $1.3 million in convertible notes marks a significant financial milestone for DBGI. The complete elimination of convertible debt securities removes potential dilution risk for shareholders and strengthens the company's balance sheet. The total debt reduction of $3.5 million in 2024 demonstrates management's commitment to improving the company's financial health.

For a micro-cap company with a market cap of just $1.45 million, this debt reduction represents a substantial portion of its capital structure. The removal of convertible notes typically reduces downward pressure on stock price, as these instruments often lead to share dilution when converted. This financial restructuring could provide DBGI with more flexibility to focus on operational growth without the burden of convertible debt obligations.

Austin, TX, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Digital Brands Group, Inc. (“DBG” or “Company”) (NASDAQ: DBGI), a curated collection of luxury lifestyle brands, today announces that it has paid off $1.3 million in outstanding convertible notes (the “Remaining Convertible Notes”). As a result of this payoff, the Company has now retired all debt securities that were convertible into the Company’s common stock.

“This was a significant step in cleaning up the balance sheet, which also removed the overhang created by the Remaining Convertible Notes. The Company has now paid off over $3.5 million in debt in 2024, including the Remaining Convertible Notes, in its effort to remove debt overhang and focus on the growth of the Company,” said Hil Davis, Chief Executive Officer of Digital Brands Group.

Forward-looking Statements

Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws. 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. All statements regarding DBG’s plans, objectives, projections and expectations relating to DBG’s operations or financial performance, and assumptions related thereto are forward-looking statements. 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 of operations or financial condition of DBG to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: 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; 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; 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; DBG’s ability to grow its wholesale and direct-to-consumer businesses; retail industry changes and challenges; 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; DBG’s ability to properly collect, use, manage and secure consumer and employee data; 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; DBG’s ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; DBG’s ability to execute and integrate acquisitions; changes in tax laws and liabilities; legal, regulatory, political and economic risks; adverse or unexpected weather conditions; DBG's indebtedness and its ability to obtain financing on favorable terms, if needed, could prevent DBG from fulfilling its financial obligations; and 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. 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.

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://ir.digitalbrandsgroup.co

FAQ

How much convertible debt did Digital Brands Group (DBGI) pay off in November 2024?

Digital Brands Group paid off $1.3 million in outstanding convertible notes in November 2024.

What is the total amount of debt DBGI has paid off in 2024?

DBGI has paid off over $3.5 million in total debt during 2024.

Has DBGI eliminated all of its convertible notes?

Yes, DBGI has retired all debt securities that were convertible into the company's common stock.