UNITED STATES
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CURRENT REPORT
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Item 8.01. | Other Events. |
On May 20, 2024, Digital Brands Group, Inc. (the “Company”) filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024, which reflected stockholders’ equity of approximately $2.98 million. Subsequent to quarter-end, on May 7, 2024, the Company raised approximately $3.2 million from the exercise of approximately 1.03 million warrants at an exercise price of $3.13. As a result of that warrant transaction, and as of the date of this filing, the Company believes it continues to have stockholders’ equity in excess of the minimum $2.5 million stockholders’ equity requirement set forth in The Nasdaq Stock Market LLC’s (“Nasdaq”) Listing Rule 5550(b)(1).
As previously reported, on April 22, 2024, the Company received a letter from Nasdaq’s Listing Qualifications Staff notifying the Company that it did not comply with Nasdaq Listing Rule 5550(b) because it reported less than $2.5 million in stockholders’ equity as of December 31, 2023. The Company subsequently requested a hearing before the Nasdaq Hearings Panel to address the deficiency. The hearing has not yet occurred.
Nasdaq will continue to monitor the Company’s ongoing compliance with Nasdaq Listing Rule 5550(b) and, if the Company’s next periodic report does not evidence compliance with Nasdaq Listing Rule 5550(b), the Company may be subject to delisting. There can be no assurance that the Company will be able to maintain compliance with Nasdaq Listing Rule 5550(b).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
DIGITAL BRANDS GROUP, INC. | ||
Dated: May 21, 2024 | By: | /s/ John Hilburn Davis IV |
Name: | John Hilburn Davis IV | |
Title: | President and Chief Executive Officer |