Digital Brands Group Receives Default Notice from Shakawe Capital on Convertible Note
Digital Brands Group received a written notice of default from Shakawe Capital LLC on October 29, 2026, alleging two Events of Default under a $3,529,412 unsecured convertible promissory note: failure to make a $1,000,000 scheduled partial payment due October 23, 2026, and failure to file a registration statement by August 7, 2026. The Holder asserts the Note is immediately due and payable at the Mandatory Default Amount equal to 120% of outstanding principal, accrued interest, and other amounts, with default in...
Key takeaways
Default notice: Shakawe Capital LLC notified Digital Brands Group on October 29, 2026 regarding a $3,529,412 unsecured convertible promissory note.
Alleged defaults: The notice cites a missed $1,000,000 scheduled partial payment due October 23, 2026 and failure to file a registration statement by August 7, 2026.
Holder's demand: The note is claimed to be immediately due at 120% of outstanding principal, plus accrued interest and other amounts owing.
Default terms: The notice states that there is no cure period, applies 20% per annum default interest and permits conversion at the default conversion price during the default.
Company response: Digital Brands Group disputes certain assertions and is evaluating alternatives, including a consensual resolution or extension, without assurance that an agreement will be reached.
Risk disclosure: An acceleration or legal proceedings could materially adversely affect the company's liquidity, financial condition and results of operations.
Primary source
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