cbdMD, Inc. announced on January 3, 2025, that it received a notice from the NYSE American LLC dated December 31, 2024, indicating noncompliance with an additional continued listing standard. Specifically, the company failed to meet Section 1003(a)(i), which requires stockholders' equity of $2 million or more if losses were reported in two of the three most recent fiscal years.
As of September 30, 2024, cbdMD reported stockholders' equity of $1,963,417 and had reported losses from continuing operations or net losses in four of its five most recent fiscal years. This new notification adds to a prior noncompliance notice from June 5, 2024, related to stockholders' equity being under $4 million.
The company's common and preferred stock will continue to trade under the 'BC' designation, indicating 'below compliance' status. cbdMD is committed to undertaking transactions, including seeking shareholder approval to convert its Series A Preferred Stock and $4.67 million in accrued dividends into common stock, to regain compliance by the December 5, 2025, deadline.
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