Digital Brands Group entered into a Lock-Up and Leak-Out Agreement with the majority holder of its Series D Convertible Preferred Stock to support a reset of the conversion floor price. For 180 days from July 17, 2026, the holder agrees not to sell common shares except under a leak-out that limits daily sales to 3% of trading volume, subject to the company's waiver. The company expects the restrictions to stabilize trading dynamics while it implements the revised floor price mechanics.
Agreement details:
- Agreement type: 180-day lock-up and leak-out agreement related to Series D preferred
- Counterparty: Majority Holder of Series D Convertible Preferred Stock
- Signed / Effective: Jul 17 2026 / Jul 17 2026
- Duration / Termination: 180 days
- Reason: Facilitate floor price reset for Series D conversions
Original SEC Filing:
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