cbdMD, Inc. Announces Notification of Noncompliance with Additional NYSE American Continued Listing Standard

Company Compliance Issues - cbdMD received a notice from NYSE American on December 31, 2024, stating noncompliance with Section 1003(a)(i) of the NYSE American Company Guide due to stockholders' equity of $1,963,417 as of September 30, 2024, which is below the required$2 million [1] - The company reported losses from continuing operations and/or net losses in four of its five most recent fiscal years [1] - cbdMD remains subject to a compliance plan accepted by NYSE American on August 20, 2024, to address noncompliance under Section 1003(a)(ii) due to stockholders' equity under $4 million [2] - The company must regain compliance by December 5, 2025, or face delisting procedures [2] Stock Listing and Trading - The notice has no immediate impact on the listing of cbdMD's common stock (YCBD) or Series A Preferred Stock (YCBD-PA), which will continue to trade on NYSE American during the compliance plan period [3] - Both stocks will trade with the designation "BC" to indicate "below compliance" status [3] Financial Performance and Strategy - cbdMD reduced cash consumption from$4.9 million in fiscal 2023 to approximately $0.7 million in fiscal 2024, with a significant reduction in the second half of fiscal 2024 [4] - The company is considering transactions, including converting Preferred Stock and its accrued dividend ($4.67 million as of September 30, 2024) into Common Stock, to increase stockholders' equity [4] Company Overview - cbdMD is a leading CBD company with brands including cbdMD, Paw CBD, and ATRx Labs, offering a comprehensive line of THC-free CBD products and Full Spectrum products [5][6] - The company's products include CBD tinctures, gummies, topicals, capsules, sleep aids, and Farm Act compliant Delta 9 products, as well as pet products and functional mushroom support [6]