Digital Brands Group receives default notice on $3.5 million convertible note
Digital Brands Group received a notice of default on October 29, 2026 from the holder of its unsecured convertible note, which asserts the full note is immediately due at 120% of outstanding amounts. The holder says it will start legal proceedings unless it receives an acceptable extension proposal by the end of October 29, 2026, and the company disputes some of the assertions while evaluating its options.
Key points
- Note principal is $3,529,412, issued July 23, 2026 under a Securities Purchase Agreement with Shakawe Capital LLC.
- Holder cites a missed $1,000,000 partial payment due October 23, 2026 and a registration statement not filed by August 7, 2026.
- Holder asserts the Mandatory Default Amount is 120% of outstanding principal, accrued interest and other amounts, with default interest of 20% per annum.
- Company disputes certain assertions and says a material adverse effect on liquidity is possible if the note is accelerated or legal proceedings begin.
The filing
Written by AI on Nov 9, 2026, 8:53 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on October 30, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.