cbdMD, Inc. Announces Shareholder Approval of Automatic Conversion of Series A Preferred Stock and Other Results from Annual Meeting

Core Viewpoint - cbdMD, Inc. announced the approval of the automatic conversion of its Series A Preferred Stock into Common Stock, which is expected to enhance its capital structure and eliminate significant dividend obligations [1][2]. Group 1: Shareholder Meeting Outcomes - Shareholders approved the automatic conversion of each share of Preferred Stock into thirteen shares of Common Stock, including all accumulated and unpaid dividends as of the Mandatory Exchange Date [1]. - The conversion is projected to eliminate approximately $6.7 million in accrued dividend payments as of March 31, 2025, and$4 million in annual dividend obligations, allowing the company to reinvest this capital into growth initiatives [2]. - Seven directors were elected for a term expiring at the 2026 annual meeting, Cherry Bekaert LLP was ratified as the independent registered public accounting firm, and an amendment for a reverse stock split was approved [2]. Group 2: Company Overview - cbdMD is recognized as a leading CBD company, offering a comprehensive line of THC-free CBD products and other brands such as Paw CBD, ATRx Labs, and Herbal Oasis [3]. - The company emphasizes its commitment to producing high-quality, U.S.-grown CBD products and aims to provide wellness-focused beverages through its Herbal Oasis brand [3].