cbdMD Announces Additional Conversions of Its Convertible Notes
cbdMD (NYSE American: YCBD) has announced significant debt reduction through conversions of its Senior Secured Convertible Notes. The outstanding principal amount has been reduced to approximately $56,000 as of January 8, 2025, following conversions that resulted in the issuance of 609,717 shares of common stock. The conversions reduced the principal by about $309,000 plus accrued interest.
The company reported having $2.1 million in cash and cash equivalents at the end of the first fiscal quarter, with a total of 6,152,841 shares of common stock outstanding as of January 8, 2024. CEO & CFO Ronan Kennedy highlighted improved balance sheet conditions and favorable liquidity position entering calendar 2025.
cbdMD (NYSE American: YCBD) ha annunciato una significativa riduzione del debito grazie alla conversione delle sue Note Convertibili Senior Garantite. L'importo principale residuo è stato ridotto a circa $56,000 a partire dall'8 gennaio 2025, a seguito delle conversioni che hanno portato all'emissione di 609,717 azioni ordinarie. Le conversioni hanno ridotto il principale di circa $309,000 oltre agli interessi maturati.
L'azienda ha riportato di avere $2.1 milioni in contante e equivalenti di cassa alla fine del primo trimestre fiscale, con un totale di 6,152,841 azioni ordinarie in circolazione a partire dall'8 gennaio 2024. Il CEO e CFO Ronan Kennedy ha messo in evidenza il miglioramento delle condizioni del bilancio e una posizione di liquidità favorevole all'ingresso nel 2025.
cbdMD (NYSE American: YCBD) ha anunciado una reducción significativa de la deuda a través de la conversión de sus Notas Convertibles Senior Garantizadas. El monto principal pendiente se ha reducido a aproximadamente $56,000 a partir del 8 de enero de 2025, tras las conversiones que resultaron en la emisión de 609,717 acciones ordinarias. Las conversiones redujeron el principal en aproximadamente $309,000 más los intereses acumulados.
La compañía informó tener $2.1 millones en efectivo y equivalentes de efectivo al final del primer trimestre fiscal, con un total de 6,152,841 acciones ordinarias en circulación a partir del 8 de enero de 2024. El CEO y CFO Ronan Kennedy destacó las condiciones mejoradas del balance y una posición de liquidez favorable al comenzar el 2025.
cbdMD (NYSE American: YCBD)는 자사의 고위험 담보 전환사채를 통한 상당한 부채 감축을 발표했습니다. 미결제 원금은 2025년 1월 8일 기준으로 약 $56,000로 감소했으며, 이는 609,717주 발행으로 이어진 전환이 있었습니다. 이러한 전환으로 원금은 약 $309,000과 이미 발생한 이자를 포함하여 감소했습니다.
회사는 2024년 1월 8일 기준으로 1분기 말에 $2.1백만의 현금 및 현금성 자산을 보유하고 있으며, 6,152,841주의 보통주가 발행되었습니다. CEO 겸 CFO인 로난 케네디는 2025년을 맞이하며 개선된 재무 구조와 유리한 유동성 상태를 강조했습니다.
cbdMD (NYSE American: YCBD) a annoncé une réduction significative de sa dette grâce à la conversion de ses Obligations Convertibles Senior Garanties. Le montant principal en cours a été réduit à environ $56,000 à compter du 8 janvier 2025, suite aux conversions ayant abouti à l'émission de 609,717 actions ordinaires. Les conversions ont réduit le principal d'environ $309,000 ainsi que les intérêts courus.
L'entreprise a déclaré avoir $2.1 millions en liquidités et équivalents de liquidités à la fin du premier trimestre fiscal, avec un total de 6,152,841 actions ordinaires en circulation au 8 janvier 2024. Le PDG et CFO Ronan Kennedy a souligné l'amélioration des conditions de bilan et une position de liquidité favorable à l'entrée en 2025.
cbdMD (NYSE American: YCBD) hat eine signifikante Schuldenreduzierung durch die Umwandlung seiner Senior Secured Convertible Notes angekündigt. Der ausstehende Hauptbetrag wurde bis zum 8. Januar 2025 auf etwa $56,000 reduziert, nachdem Umwandlungen zur Ausgabe von 609,717 Stammaktien führten. Die Umwandlungen reduzierten das Kapital um etwa $309,000 zuzüglich aufgelaufener Zinsen.
Das Unternehmen berichtete, zum Ende des ersten Quartals über $2,1 Millionen in Bargeld und Barmitteln zu verfügen, wobei am 8. Januar 2024 insgesamt 6,152,841 Stammaktien ausstehend waren. CEO und CFO Ronan Kennedy hob die verbesserten Bilanzverhältnisse und die günstige Liquiditätslage zu Beginn des Kalenderjahres 2025 hervor.
- Significant debt reduction with convertible notes principal reduced to $56,000
- Strong liquidity position with $2.1 million in cash and cash equivalents
- Improved balance sheet through debt conversion
- Shareholder dilution through issuance of 609,717 new shares from debt conversion
Insights
The debt conversion activity signals a significant balance sheet improvement, reducing convertible notes from
The company's
For retail investors: Think of this like trading short-term debt for ownership pieces - while it removes immediate payment obligations, it's similar to a landlord accepting partial ownership instead of rent. This can be good for immediate cash flow but means each existing piece is worth less of the total pie.
Operating in the fragmented CBD market, cbdMD's multi-brand strategy across CBD, pet products and functional mushrooms represents an attempt at diversification in a challenging space. The NSF Certified for Sport® certification provides competitive differentiation, particularly valuable as the CBD market matures and consolidates.
The company's pivot to include Delta 9 products and functional mushrooms indicates strategic adaptation to evolving consumer trends. However, with a micro-cap valuation of
In simple terms: Picture a small specialty store trying to compete with big retail chains. While they might have unique products and certifications, they need significant resources to expand their reach and maintain competitive positioning. The debt reduction helps, but it's just one piece of a larger puzzle they need to solve.
Charlotte, North Carolina--(Newsfile Corp. - January 8, 2025) - cbdMD, Inc. (NYSE American: YCBD) (NYSE American: YCBDpA), a leading and highly trusted CBD company known for its flagship brands cbdMD and Paw CBD, as well as its innovative functional mushroom brand ATRx Labs, today announced that the Company has reduced the principal amount outstanding on its Senior Secured Convertible Notes to approximately
Since the start of the year, the Company has issued an aggregate of 609,717 shares of common stock as a result of conversion requests and the aggregate balances under the notes have been reduced by approximately
"We are pleased with how our fiscal first quarter finished up and at the end of the first fiscal quarter we had cash and cash equivalents of approximately
About cbdMD, Inc.
cbdMD, Inc. is one of the leading and most highly trusted and most recognized cannabidiol (CBD) brands with a comprehensive line of U.S. produced, THC-free1 CBD products, including NSF Certified for Sport® products, as well as our new Full Spectrum products. Our cbdMD brand currently includes high-grade, premium CBD products including CBD tinctures, CBD gummies, CBD topicals, CBD capsules, CBD sleep aids and CBD drink products including our Herbal Oasis Social Tonic and an array of Farm Act compliant Delta 9 products. Our Paw CBD brand of pet products includes veterinarian-formulated products including tinctures, chews, topicals products in varying strengths, and our ATRx brand of natural functional mushroom support. To learn more about cbdMD and our comprehensive line of U.S. grown, THC-free1 CBD oil and Full Spectrum products as well as our other brands, please visit www.cbdmd.com, www.pawcbd.com, or ATRxlabs.com, follow cbdMD on Instagram and Facebook, or visit one of the thousands of retail outlets that carry cbdMD's products.
Forward-Looking Statements
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified using words such as ''should,'' ''may,'' ''intends,'' ''anticipates,'' ''believes,'' ''estimates,'' ''projects,'' ''forecasts,'' ''expects,'' ''plans,'' and ''proposes.'' These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict. You are urged to carefully review and consider any cautionary statements, including but not limited to expectations on our ability to continue as a going concern, increasing our revenues, continued cost reductions, potential need for additional working capital, regaining compliance with NYSE American continued listing standards, continued listing on the NYSE American, future profitability, development and sales of new products, and other disclosures, including the statements made under the heading "Risk Factors" in cbdMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended September 30, 2024 as filed with the Securities and Exchange Commission (the "SEC") on December 17, 2024, and our other filings with the SEC. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of cbdMD, Inc. and are difficult to predict. cbdMD, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. The information which appears on our websites and our social media platforms, including, but not limited to, Instagram and Facebook, is not part of this press release.
1 THC-free is defined as below the level of detection using validated scientific analytical methods.
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FAQ
How much did YCBD reduce its convertible notes principal to in January 2025?
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What is YCBD's cash position at the end of first fiscal quarter?
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How much principal debt was reduced through YCBD's recent note conversions?
