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In a recent filing with the Securities and Exchange Commission, cbdMD (NYSE:YCBD), Inc. reported a revision in its share count following the partial conversion of convertible promissory notes. As of today, the Charlotte, North Carolina-based company, which operates under the industrial classification of perfumes, cosmetics, and other toilet preparations, disclosed that its outstanding common stock now totals 3,763,433 shares.
This update comes after the company reconciled partial conversions of its series of 8% Senior Secured Original Issue 20% Discount Convertible Promissory Notes. The remaining aggregate principal balance of these notes, as of today, stands at $1,076,963.
The company, previously known as Level Brands , Inc., and before that as LEVEL BEAUTY GROUP, INC., has its common stock and 8% Series A Cumulative Convertible Preferred Stock listed on the NYSE American with the trading symbols YCBD and YCBD PR A, respectively.
The 8-K form was signed by T. Ronan Kennedy, the Chief Executive Officer and Chief Financial Officer of cbdMD, Inc., and was filed in accordance with the requirements of the Securities Exchange Act of 1934. This filing provides investors and the market with updated information on the company's equity structure as a result of the note conversions. The information is based on a press release statement from the company.
In other recent news, cbdMD, Inc., a North Carolina-based company, has submitted a plan to the NYSE American LLC to regain compliance with the exchange's listing standards. This action follows a notice received by the company from the NYSE American indicating non-compliance with the exchange's requirements.
The company met the deadline of July 5, 2024, to submit a detailed plan outlining how it intends to regain compliance by December 5, 2025.
The specifics of the plan have not been disclosed, but it is understood that it comprises steps aimed at satisfying the listing standards within the stipulated timeframe. cbdMD anticipates feedback from the NYSE American about the acceptance of the plan and any additional recommendations in August 2024.
The company's management, led by CEO and CFO T. Ronan Kennedy, will be responsible for implementing the plan and guiding the company's strategic direction during this period. The submission of the compliance plan is a significant move for cbdMD to retain its listing on the NYSE American.
InvestingPro Insights
As cbdMD, Inc. (YCBD) navigates through its financial restructuring, InvestingPro data and tips shed light on the company's current fiscal health and market standing. With a market capitalization of a mere $2.38 million, the company is operating under a significant debt burden, which may be challenging given the -25.0% revenue decline reported over the last twelve months as of Q2 2024.
This underlines the difficulties cbdMD faces, as analysts have forecasted a sales decline in the current year. Furthermore, the company's stock price has experienced considerable volatility, declining by -38.01% over the last three months.
InvestingPro Tips suggest that cbdMD's financial situation is precarious, with a quickly diminishing cash reserve and concerns about the company's ability to service its debt, as indicated by a negative P/E ratio of -0.07. Moreover, the company has not been profitable over the last twelve months, and analysts do not anticipate profitability this year either.
With the price trading at a low revenue valuation multiple and no dividends paid to shareholders, investors should exercise caution. For those seeking to delve deeper into cbdMD's financial metrics and gain additional insights, InvestingPro offers a wealth of analysis, including PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which features a total of 11 additional InvestingPro Tips for a comprehensive investment strategy.
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