cbdMD, Inc. (NYSE American: YCBD) restored full compliance with NYSE American continued listing standards on December 8, 2025, after the exchange removed the “.BC” non‑compliance indicator at market open. The move eliminates the risk of a delisting action and signals that the company has met the exchange’s minimum stockholders’ equity and other regulatory requirements.
The company had faced a series of compliance warnings over the past two years. In June 2024, a notice was issued for falling below the $4 million equity threshold, with reported equity of $3.1 million as of March 31, 2024. A second warning followed in December 2024 for a $2 million threshold breach, with equity of $1.96 million as of September 30, 2024. These shortfalls were driven by consecutive operating losses and a high dividend liability from preferred stock.
cbdMD addressed the deficiencies through a two‑phase capital restructuring. The conversion of Series A Preferred shares in May 2025 eliminated approximately $6.7 million in accrued dividend obligations and $4.0 million in perpetual annual commitments, immediately strengthening the balance sheet. A private placement of Series B Preferred stock in September 2025 raised $1.7 million in gross proceeds, of which $1.5 million was net, providing additional working‑capital support and further boosting equity to meet the $2 million minimum.
Although the company has regained compliance, NYSE American will continue to monitor its financial condition under the exchange’s ongoing monitoring procedures. As a micro‑cap with a market capitalization around $5.5 million to $11.7 million, maintaining its listing is critical for liquidity and access to capital. The company’s recent equity improvements reduce the likelihood of future delisting but do not eliminate the need for disciplined financial management.
CEO Ronan Kennedy emphasized that the compliance milestone reflects “the tremendous work completed this year to strengthen our balance sheet and position the Company for sustainable growth.” He noted that the Series A conversion and September capital raise were essential components of the strategy. Market reaction to the announcement was muted, with investors taking a cautious view given the company’s history of losses and the ongoing monitoring requirement.
The restoration of NYSE American listing status is a significant regulatory win for cbdMD, but it also underscores the fragility of its financial position. Investors will likely focus on the company’s ability to maintain equity levels, improve profitability, and expand its product portfolio across the cbdMD, Paw CBD, and ATRx brands. The event provides a clearer picture of the company’s resilience but also highlights the need for continued operational and financial discipline.
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