cbdMD Faces Nasdaq Delisting Notice

TL;DR

CBDM got a delisting warning from Nasdaq, might get kicked off.

AI Summary

cbdMD, Inc. announced on August 20, 2024, that it received a notice from the Nasdaq Stock Market indicating a failure to meet continued listing requirements. The company is currently evaluating its options to regain compliance and has been formerly known as Level Brands, Inc. and LEVEL BEAUTY GROUP, INC.

Why It Matters

This filing signals potential delisting from Nasdaq, which could significantly impact the company's stock liquidity and investor confidence.

Risk Assessment

Risk Level: high — Receiving a delisting notice from a major stock exchange like Nasdaq presents a significant risk to the company's continued trading and investor perception.

Key Players & Entities

• cbdMD, Inc. (company) — Registrant
• Nasdaq Stock Market (company) — Exchange issuing delisting notice
• Level Brands, Inc. (company) — Former company name
• LEVEL BEAUTY GROUP, INC. (company) — Former company name

FAQ

Key Financial Figures

• $4 million — company to have stockholders' equity of $4 million or more if the listed company has repor
• $3.1 million — any reported a stockholders' deficit of $3.1 million as of March 31, 2024, and has had losse

Filing Documents

• ycbd20240826_8k.htm (8-K) — 29KB
• ex_718525.htm (EX-99.1) — 11KB
• 0001437749-24-027762.txt ( ) — 190KB
• ycbd-20240820.xsd (EX-101.SCH) — 4KB
• ycbd-20240820_def.xml (EX-101.DEF) — 13KB
• ycbd-20240820_lab.xml (EX-101.LAB) — 17KB
• ycbd-20240820_pre.xml (EX-101.PRE) — 13KB
• ycbd20240826_8k_htm.xml (XML) — 5KB

01 Notice Of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

Item 3.01 Notice Of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. On August 20, 2024, cbdMD, Inc. (the "Company") received notice from the NYSE American LLC ("NYSE American") that it had accepted the Company's plan to regain compliance with the NYSE American continued listing standards and granted a plan period through December 5, 2025 ("Deadline Date"). As previously disclosed on June 5, 2024, the Company received a letter from the NYSE American LLC stating that the Company was not in compliance with the continued listing standards set forth in Sections 1003(a)(ii) of the NYSE American Company Guide. Section 1003(a)(ii) requires a listed company to have stockholders' equity of $4 million or more if the listed company has reported losses from continuing operations and/or net losses in three of its four most recent fiscal years. The Company reported a stockholders' deficit of $3.1 million as of March 31, 2024, and has had losses from continuing operations and/or net losses in three of its four most recent fiscal years ended September 30, 2023. During the plan period, the Company will be subject to quarterly review to determine if it is making progress consistent with the plan. If the Company does not regain compliance with the NYSE American listing standards by the Deadline Date, or if the Company does not make sufficient progress consistent with its plan, then the NYSE American may initiate delisting proceedings. The Company's preferred stock and common stock will continue to be listed on the NYSE American during the plan period pursuant to an extension. The Company's receipt of such notification from the NYSE American does not affect the Company's business, operations or reporting requirements with the U.S. Securities and Exchange Commission. The Company can provide no assurances that it will be able to make progress with respect to its plan that NYSE American will determine to be satisfactory, that it will regain c

01 Other Events

Item 8.01 Other Events. On August 26, 2024, in accordance with the NYSE American's procedures, the Company issued a press release disclosing the receipt of the NYSE American notice accepting its plan. A copy of the press release is included herewith as Exhibit 99.1, which is incorporated by reference into this Item 8.01.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Exhibit 99.1 Press Release dated August 26, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. cbdMD, Inc. Date: August 26, 2024 By: /s/ T. Ronan Kennedy Name: T. Ronan Kennedy Title: Chief Executive Officer and Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR