Digital Brands Sells DSTLD IP for $1.5M
Ticker: DBGI · Form: 8-K · Filed: May 21, 2024 · CIK: 1668010
Sentiment: neutral
Topics: asset-sale, divestiture, intellectual-property
Related Tickers: DBGI
TL;DR
DBGI selling DSTLD IP for $1.5M cash, closing by June 30.
AI Summary
Digital Brands Group, Inc. announced on May 21, 2024, that it has entered into a definitive agreement to sell its intellectual property and related assets for the brand "DSTLD" to an unaffiliated third party for $1.5 million in cash. The transaction is expected to close on or before June 30, 2024, and the proceeds will be used for general corporate purposes.
Why It Matters
This sale represents a strategic divestiture for Digital Brands Group, Inc., potentially freeing up capital and allowing the company to focus on its remaining brands.
Risk Assessment
Risk Level: medium — The sale of a brand's intellectual property can indicate financial strain or a strategic shift, requiring further investigation into the company's overall financial health and future plans.
Key Numbers
- $1.5M — Sale Price (Cash proceeds from the sale of DSTLD intellectual property and related assets.)
- June 30, 2024 — Closing Date (Anticipated date for the completion of the DSTLD asset sale.)
Key Players & Entities
- Digital Brands Group, Inc. (company) — Registrant
- DSTLD (company) — Brand being sold
- $1.5 million (dollar_amount) — Sale price of DSTLD IP
- May 21, 2024 (date) — Date of report
- June 30, 2024 (date) — Expected closing date of the sale
FAQ
What specific intellectual property and related assets are included in the sale of the DSTLD brand?
The filing states that the sale includes the intellectual property and related assets for the brand 'DSTLD'.
Who is the unaffiliated third party purchasing the DSTLD assets?
The filing does not disclose the name of the unaffiliated third party purchasing the DSTLD assets.
What is the exact amount of cash Digital Brands Group, Inc. will receive from the DSTLD sale?
Digital Brands Group, Inc. will receive $1.5 million in cash from the sale.
What will Digital Brands Group, Inc. use the proceeds from the DSTLD sale for?
The proceeds will be used for general corporate purposes.
What is the deadline for the DSTLD asset sale to be completed?
The transaction is expected to close on or before June 30, 2024.
Filing Stats: 606 words · 2 min read · ~2 pages · Grade level 10.8 · Accepted 2024-05-21 17:18:34
Key Financial Figures
- $0.0001 — ch registered Common Stock, par value $0.0001 DBGI The Nasdaq Stock Market LLC
- $2.98 million — d stockholders' equity of approximately $2.98 million. Subsequent to quarter-end, on May 7, 2
- $3.2 million — 2024, the Company raised approximately $3.2 million from the exercise of approximately 1.03
- $3.13 — illion warrants at an exercise price of $3.13. As a result of that warrant transactio
- $2.5 million — olders' equity in excess of the minimum $2.5 million stockholders' equity requirement set fo
Filing Documents
- form8-k.htm (8-K) — 38KB
- 0001493152-24-020917.txt ( ) — 250KB
- dbgi-20240521.xsd (EX-101.SCH) — 4KB
- dbgi-20240521_def.xml (EX-101.DEF) — 26KB
- dbgi-20240521_lab.xml (EX-101.LAB) — 36KB
- dbgi-20240521_pre.xml (EX-101.PRE) — 25KB
- form8-k_htm.xml (XML) — 6KB
SIGNATURES
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