Core Points - cbdMD, Inc. announced the automatic conversion of its 8% Series A Cumulative Convertible Preferred Stock into Common Stock, effective May 6, 2025, with each share of Preferred Stock converting into thirteen shares of Common Stock [2][3] - The company will also implement a one-for-eight reverse stock split of its Common Stock, effective immediately after the automatic conversion on May 6, 2025 [4][5] - Following these actions, the number of issued and outstanding shares of Common Stock will reduce from approximately 71.26 million to about 8.91 million shares [5][7] Company Actions - The automatic conversion and reverse stock split were approved by shareholders at the annual meeting on April 10, 2025, and are aimed at improving the company's capital structure [3][4] - The reverse stock split will not affect shareholders' percentage ownership or voting power, except for minor adjustments due to fractional shares [5] - The company aims to eliminate approximately $6.7 million in accrued dividend liabilities and $4.0 million in perpetual annual obligations through these actions, enhancing its balance sheet [7] Strategic Outlook - The CEO expressed optimism about the company's recent developments, including strong sales results and new distribution deals, indicating a turning point for cbdMD [6] - The company believes that these structural changes will provide strategic flexibility for future mergers and acquisitions, positioning it for growth opportunities [7]