- cbdMD (YCBD, Financial) announces automatic conversion of Series A Preferred Stock into Common Stock.
- A one-for-eight reverse stock split will consolidate shares, effective May 6, 2025.
- The actions eliminate $10.7 million in dividend liabilities and obligations, strengthening the balance sheet.
cbdMD, Inc. (YCBD) announced two major corporate actions set to take effect on May 6, 2025. Firstly, the automatic conversion of its 8% Series A Cumulative Convertible Preferred Stock into Common Stock will occur. This conversion will transform each preferred share into thirteen common shares, effectively eliminating approximately $6.7 million in accrued dividend liabilities and $4.0 million in perpetual annual obligations.
The last trading day for the preferred stock is slated for May 5, 2025. Following the conversion, a one-for-eight reverse stock split of cbdMD’s common stock will take place immediately after market close on May 6, 2025. Post-split trading will commence on May 7, 2025, reducing the total outstanding common shares from approximately 71.26 million to 8.91 million.
These actions are part of cbdMD's strategic financial restructuring plan to enhance compliance with NYSE American listing standards and strengthen the company’s capital structure. By maintaining the NYSE American listing under the YCBD symbol with a new CUSIP number, cbdMD aims to improve its market position and potential for future strategic opportunities.
