cbdMD Announces It Has Fully Satisfied Its Notes
cbdMD (NYSE American: YCBD) has announced the full satisfaction of its Senior Secured Convertible Notes through conversion into common stock. As of January 14, 2025, the company has 6,262,833 shares of common stock outstanding. The conversion, completed ahead of maturity, has strengthened the company's financial position and enhanced cash reserves.
CEO & CFO Ronan Kennedy highlighted that the Notes provided essential working capital over the past year, and their conversion has left the company debt-free, excluding normal operational accounts payable. This development provides greater flexibility for capital allocation toward profitable revenue growth.
cbdMD is known for its THC-free CBD products, including the cbdMD, Paw CBD, and ATRx Labs brands, offering various products from CBD tinctures and gummies to pet products and functional mushroom supplements.
cbdMD (NYSE American: YCBD) ha annunciato la piena soddisfazione delle sue Note Convertibili Senior Sicure attraverso la conversione in azioni ordinarie. A partire dal 14 gennaio 2025, la società ha 6.262.833 azioni ordinarie in circolazione. La conversione, completata prima della scadenza, ha rafforzato la posizione finanziaria dell'azienda e aumentato le riserve di liquidità.
Il CEO e CFO Ronan Kennedy ha sottolineato che le Note hanno fornito un capitale di lavoro essenziale nell'ultimo anno e che la loro conversione ha lasciato l'azienda senza debiti, escluse le normali passività operative. Questo sviluppo offre maggiore flessibilità per l'allocazione dei capitali verso una crescita dei ricavi redditizia.
cbdMD è conosciuta per i suoi prodotti CBD privi di THC, tra cui i marchi cbdMD, Paw CBD e ATRx Labs, che offrono una varietà di prodotti che vanno dalle tinture e gomme al CBD fino ai prodotti per animali domestici e ai supplementi funzionali di funghi.
cbdMD (NYSE American: YCBD) ha anunciado la completa satisfacción de sus Notas Convertibles Senior Aseguradas mediante su conversión en acciones ordinarias. A fecha del 14 de enero de 2025, la compañía cuenta con 6,262,833 acciones ordinarias en circulación. La conversión, completada antes de su vencimiento, ha fortalecido la posición financiera de la empresa y aumentado las reservas de efectivo.
El CEO y CFO Ronan Kennedy destacó que las Notas proporcionaron capital de trabajo esencial durante el año pasado, y su conversión ha dejado a la compañía libre de deudas, excluyendo las cuentas por pagar operativas normales. Este desarrollo proporciona una mayor flexibilidad para la asignación de capital hacia un crecimiento rentable de los ingresos.
cbdMD es conocida por sus productos de CBD sin THC, incluyendo las marcas cbdMD, Paw CBD y ATRx Labs, que ofrecen una variedad de productos que van desde tinturas y gomitas de CBD hasta productos para mascotas y suplementos funcionales de hongos.
cbdMD (NYSE American: YCBD)는 보통주로 전환하여 연금담보부 전환사채의 전면 상환을 발표했습니다. 2025년 1월 14일 현재, 회사는 6,262,833주의 보통주를 발행한 상태입니다. 만기 이전에 완료된 이번 전환은 회사의 재무 상태를 강화하고 현금 유동성을 증가시켰습니다.
CEO이자 CFO인 로난 케네디는 노트가 지난 1년 동안 필수적인 운영 자본을 제공했다고 강조하며, 전환으로 인해 정상적인 운영 계좌 외에는 회사가 부채가 없게 되었다고 밝혔습니다. 이 발전은 수익성 있는 성장에 대한 자본 배분의 유연성을 제공합니다.
cbdMD는 THC가 없는 CBD 제품으로 유명하며, 다양한 CBD 팅크와 젤리, 반려동물 제품, 기능성 버섯 보충제를 제공하는 cbdMD, Paw CBD, ATRx Labs 브랜드를 포함합니다.
cbdMD (NYSE American: YCBD) a annoncé la pleine satisfaction de ses Obligations Convertibles Securisées Senior par conversion en actions ordinaires. À partir du 14 janvier 2025, la société dispose de 6 262 833 actions ordinaires en circulation. La conversion, achevée avant l'échéance, a renforcé la position financière de la société et augmenté les réserves de liquidités.
Le PDG et CFO Ronan Kennedy a souligné que les Obligations ont fourni un fonds de roulement essentiel au cours de l'année dernière, et leur conversion a laissé l'entreprise sans dettes, à l'exception des comptes fournisseurs opérationnels normaux. Ce développement offre une plus grande flexibilité pour l'allocation de capital vers une croissance des revenus rentable.
cbdMD est connue pour ses produits CBD sans THC, y compris les marques cbdMD, Paw CBD et ATRx Labs, proposant divers produits allant des teintures et bonbons au CBD aux produits pour animaux et suppléments de champignons fonctionnels.
cbdMD (NYSE American: YCBD) hat die vollständige Zufriedenheit seiner Senior Secured Convertible Notes durch Umwandlung in Stammaktien bekannt gegeben. Am 14. Januar 2025 hat das Unternehmen 6.262.833 ausgegebene Stammaktien. Die Umwandlung, die vor der Fälligkeit abgeschlossen wurde, hat die finanzielle Lage des Unternehmens gestärkt und die Bargeldreserven erhöht.
CEO und CFO Ronan Kennedy hob hervor, dass die Notes im vergangenen Jahr wichtiges Betriebskapital bereitgestellt haben und ihre Umwandlung das Unternehmen schuldenfrei hinterlassen hat, abgesehen von den normalen operativen Verbindlichkeiten. Diese Entwicklung bietet größere Flexibilität bei der Kapitalallokation zur profitablen Umsatzsteigerung.
cbdMD ist bekannt für seine THC-freien CBD-Produkte, einschließlich der Marken cbdMD, Paw CBD und ATRx Labs, die eine Vielzahl von Produkten anbieten, von CBD-Tinkturen und Gummibärchen bis hin zu Haustierprodukten und funktionalen Pilzsupplementen.
- Full satisfaction of Senior Secured Convertible Notes ahead of maturity
- Company is now debt-free (excluding normal operational accounts payable)
- Enhanced cash reserves and improved financial flexibility
- Strengthened balance sheet position
- Significant share dilution due to note conversion into common stock
Insights
The full satisfaction of convertible notes marks a critical financial milestone for cbdMD. By converting the notes to common stock, the company has effectively eliminated its debt burden outside of regular operational payables, issuing approximately 6.26 million shares in the process. While this action dilutes existing shareholders, it significantly improves the balance sheet by removing debt obligations and associated interest payments.
In simpler terms: Imagine trading your credit card debt for a piece of ownership in the company. That's essentially what happened here - cbdMD turned their loans into shares, which means they don't have to pay back money anymore, but now there are more shares out there, making each existing share worth a bit less.
The timing of this debt elimination is particularly strategic given the challenging market conditions in the CBD industry. With improved cash flow from reduced debt service obligations, cbdMD now has enhanced operational flexibility and can better allocate resources toward growth initiatives. The debt-free status also makes the company more attractive to potential investors and partners, though the increased share count needs to be carefully considered in valuation models.
This development positions cbdMD more competitively in the evolving CBD market landscape. With a market cap of
Breaking it down for everyone: It's like clearing your personal debts completely - you can now focus on growing your business instead of worrying about monthly payments. This gives cbdMD more freedom to invest in new products and marketing, which could help them grow faster.
The diverse product portfolio spanning CBD, pet care and mushroom supplements provides multiple revenue streams and this improved financial position could help accelerate market penetration in these segments. The NSF Certified for Sport® certification particularly differentiates their products in the competitive CBD market, offering potential growth opportunities in the sports nutrition sector.
Charlotte, North Carolina--(Newsfile Corp. - January 15, 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 fully satisfied the accrued interest and principal associated with its Senior Secured Convertible Notes. As of January 14, 2025, there are 6,262,833 shares of the Company's common stock issued and outstanding.
"The Notes have been instrumental in providing us with the working capital cushion needed over the past year. By the full conversion of the Notes into shares of our common stock ahead of their maturity date, we've strengthened our financial position, enhanced our cash reserves, and gained greater flexibility to allocate capital prudently toward driving profitable revenue growth. With this milestone, we are now debt-free, excluding accounts payable from normal operations, and remain committed to further optimizing our balance sheet and capital structure to support sustainable long-term growth," said Ronan Kennedy, the Company's CEO & CFO.
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, potential need for additional working capital, regaining compliance with NYSE American continued listing standards, continued listing on the NYSE American, future profitability, 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 18, 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.
Contacts:
Investors:
cbdMD, Inc.
Ronan Kennedy
Chief Executive Officer and Chief Financial Officer
IR@cbdmd.com
(704) 445-3064
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/237292
FAQ
How many shares of YCBD common stock are outstanding as of January 14, 2025?
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How did YCBD satisfy its Senior Secured Convertible Notes?
What financial impact does the note conversion have on YCBD?
