cbdMD, Inc. announced on April 10, 2025, that its shareholders approved the automatic conversion of Series A Cumulative Convertible Preferred Stock into common stock at the annual meeting. This conversion is expected to eliminate approximately $6.7 million in accrued dividend payments as of March 31, 2025, and $4 million in annual dividend obligations.
Each share of Preferred Stock will convert into thirteen shares of Common Stock, inclusive of all accumulated and unpaid dividends. This action is intended to significantly enhance the company's capital structure, provide flexibility for strategic activities and M&A, and strengthen the balance sheet.
The restructuring is also crucial for meeting the shareholders' equity requirements for the continued listing of cbdMD's Common Stock on the NYSE American. Additionally, shareholders approved an amendment to the company’s articles of incorporation, granting the board discretion to effect a reverse stock split of common stock at a ratio between one-for-three and one-for-ten.
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