cbdMD Inc (YCBD)

[Wolf-man jack]

WQLF FACTS; Deja Vu

Charlotte, North Carolina--(Newsfile Corp. - August 22, 2023) - cbdMD, Inc. (NYSE American: YCBD) (NYSE American: YCBDpA) today announced that its Board of Directors has suspended the monthly cash dividend payment on the Company's 8.0% Series A Cumulative Convertible Preferred Stock (the "Series A Preferred Stock") beginning with the month ending August 31, 2023, as the Company conserves cash in order to continue its efforts to increase sales, develop additional products, continue research and development and attempt to achieve profitability. The dividends on the Company's Series A Preferred Stock have been suspended until such time as the Board of directors deem that the Company has sufficient working capital to restore the payment of the dividends.

Under the terms of the Series A Preferred Stock any unpaid dividends, including the unpaid dividends for the month ending August 31, 2023 and any future unpaid dividends, will accumulate. Whenever dividends on any shares of Series A Preferred Stock have not been declared and paid for the equivalent of 12 or more monthly dividend periods, whether or not for consecutive months, the authorized number of directors on the Company's Board of Directors shall, at the next annual meeting of shareholders or at a special meeting of shareholders, automatically be increased by two and holders of shares of Series A Preferred Stock, voting together as a single class, shall be entitled to vote for the election of a total of two additional members of the Board of Directors.

The suspension of the monthly dividends does not affect the listing on the NYSE American of the Series A Preferred Stock and the Series A Preferred Stock will continue to be listed and traded on the NYSE American, subject to the Company's continued compliance with the NYSE American's listing standards. However, the suspension may impact our ability to raise capital under a Registration Statement on Form S-3.

The board of the Company has recently adopted resolutions to amend the Company's Certificate of Designation (the "Series A Certificate of Designation") for the Series A Preferred Stock to provide that each share of Series A Preferred will be automatically converted into three shares of common stock (the "Series A Amendment"). The Company is holding a special meeting of its shareholders to vote on the Series A Amendment on September 22, 2023. The Series A Amendment requires: (1) the affirmative vote of a majority of the shares of the Company's common stock present, either in person or represented by proxy, and entitled to vote at the special meeting and (2) the affirmative vote or consent of the holders of at least two-third (2/3) of the Company's outstanding shares of Series A Preferred. In the event the Series A Amendment is approved, holders of the Series A Preferred would receive three shares of common stock for each share of Series A Preferred and no longer own any Series A Preferred Stock, or hold any of the rights and preferences of the Series A Preferred or be entitled to any accrued dividend payments, if any.

The Series A Preferred Stock is listed on the NYSE American and trades under the ticker symbol "YCBD.pA."

https://www.finanznachrichten.de/nachrichten-2023-08/59912809-cbdmd-inc-suspends-monthly-dividend-payment-on-its-series-a-cumulative-convertible-preferred-stock-296.htm