Charlotte, North Carolina–(Newsfile Corp. – April 14, 2023) – cbdMD, Inc. (NYSE:YCBD) (NYSE:YCBDPA), a leading provider of high-quality CBD products, announced today that its board of directors on April 12, 2023 approved a ratio of one-for-forty five reverse stock split of the Company’s issued and outstanding shares of common stock. The Company’s shareholders previously approved the reverse stock split on February 16, 2023 and granted the board the authority to determine a final reverse split ratio. The reverse stock split will effective after the market closes on April 24, 2023 following the filing and effectiveness of an amendment to the Company’s articles of incorporation, as amended, with the common stock trading on a post-split basis when the market opens on April 25, 2023. The Company’s common stock will continue to trade on the NYSE American under the existing trading symbol “YCBD” with a new CUSIP number, 12482W 309.
As a result of the reverse stock split, every forty-five pre-split shares of common stock outstanding will automatically combine into one new share of common stock without any action on the part of holders, and the number of issued and outstanding common shares will be reduced from approximately 65.5 million shares to approximately 1.45 million shares. Any fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share on a per shareholder basis. Proportionate adjustments will be made to (i) shares of common stock issuable upon exercise or conversion of all issued and outstanding options and warrants and series A preferred stock, and (ii) shares outstanding and authorized for issuance under the Company’s equity incentive plans. The reverse stock split will not impact any shareholder’s percentage ownership of the Company or voting power, except for the minimal effects resulting from the treatment of fractional shares. The reverse stock split will neither affect the par value of the common stock nor will it affect the Company’s authorized preferred stock, except to affect, where applicable, the conversion rates of outstanding shares of series A preferred stock.
The reverse stock split is intended to increase the market price per share of the Company’s common stock to enable the Company to continue to meet the continued listing standards of the NYSE American, LLC in order to comply with the NYSE American continued listing standards relating to minimum price per share. Commenting on the reverse stock split, Interim Chief Executive Officer and Chief Financial Officer, Mr. T. Ronan Kennedy stated: “We believe that the resulting increase in share price from the reverse split will ensure continued compliance with our NYSE American listing and improve the perception of our common stock and increase the appeal of our stock to a broader range of investors.”
vStock Transfer LLC, the Company’s transfer agent, will act as the exchange agent for the reverse stock split. Please contact vStock Transfer LLC for further information at (212) 828-8436. Shareholders holding their shares in book entry form or brokerage accounts need not take any action in connection with the reverse stock split.
