cbdMD, Inc. Enters Loan Agreement
Ticker: YCBD · Form: 8-K · Filed: Nov 27, 2024 · CIK: 1644903
| Field | Detail |
|---|---|
| Company | Cbdmd, Inc. (YCBD) |
| Form Type | 8-K |
| Filed Date | Nov 27, 2024 |
| Risk Level | medium |
| Pages | 3 |
| Reading Time | 4 min |
| Key Dollar Amounts | $65,000, $9.75, $67,600, $10.14 |
| Sentiment | neutral |
Sentiment: neutral
Topics: debt, financing, material-definitive-agreement
TL;DR
cbdMD just signed a new loan agreement, adding to their debt obligations.
AI Summary
On November 26, 2024, cbdMD, Inc. entered into a Material Definitive Agreement, specifically a loan agreement. This agreement creates a direct financial obligation for the registrant. The filing also includes information about other events and financial statements.
Why It Matters
This filing indicates cbdMD, Inc. has taken on new debt, which could impact its financial leverage and future operations.
Risk Assessment
Risk Level: medium — Taking on new debt can increase financial risk for a company, especially if its cash flow is not robust.
Key Players & Entities
- cbdMD, Inc. (company) — Registrant
- November 26, 2024 (date) — Date of Material Definitive Agreement
FAQ
What is the nature of the Material Definitive Agreement entered into by cbdMD, Inc.?
cbdMD, Inc. entered into a loan agreement, which constitutes a Material Definitive Agreement.
What is the date of the earliest event reported in this 8-K filing?
The earliest event reported is dated November 26, 2024.
What type of financial obligation does the loan agreement create for cbdMD, Inc.?
The loan agreement creates a direct financial obligation for the registrant.
What is the state of incorporation for cbdMD, Inc.?
cbdMD, Inc. is incorporated in North Carolina.
What was the former name of cbdMD, Inc.?
cbdMD, Inc. was formerly known as Level Brands, Inc. and LEVEL BEAUTY GROUP, INC.
Filing Stats: 889 words · 4 min read · ~3 pages · Grade level 10.9 · Accepted 2024-11-27 06:02:44
Key Financial Figures
- $65,000 — t provides for the monthly base rent of $65,000, with an annual base rent of $9.75 per
- $9.75 — of $65,000, with an annual base rent of $9.75 per square feet from March 1, 2025 thro
- $67,600 — 1, 2025 through February 28, 2026, and $67,600 with an annual base rent of $10.14 per
- $10.14 — and $67,600 with an annual base rent of $10.14 per square feet from March 1, 2026 thro
Filing Documents
- ycbd20241126_8k.htm (8-K) — 30KB
- ex_752761.htm (EX-10.1) — 33KB
- 0001437749-24-036298.txt ( ) — 216KB
- ycbd-20241126.xsd (EX-101.SCH) — 4KB
- ycbd-20241126_def.xml (EX-101.DEF) — 13KB
- ycbd-20241126_lab.xml (EX-101.LAB) — 17KB
- ycbd-20241126_pre.xml (EX-101.PRE) — 13KB
- ycbd20241126_8k_htm.xml (XML) — 5KB
01. Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement. Effective November 26, 2024, cbdMD, Inc. (the "Company") entered into a Second Amendment to Lease (the "Amendment") to extend the Warehouse Lease entered into on August 27, 2019 (the "Lease") for approximately 80,000 square feet of space located at 2101 Westinghouse Boulevard, Suite A, Charlotte, North Carolina 28273, which facility also serves as the Company's executive offices. The Amendment extends the term of the Lease for a period of nineteen months beginning on March 1, 2025 with a new expiration date of September 30, 2026. The Company has no further rights to extend or renew the terms of the Lease. The Amendment provides for the monthly base rent of $65,000, with an annual base rent of $9.75 per square feet from March 1, 2025 through February 28, 2026, and $67,600 with an annual base rent of $10.14 per square feet from March 1, 2026 through September 30, 2026. The Company shall also continue to pay Additional Rent and all other amounts (other than "Monthly Base Rent") in accordance with the terms of the Lease, except the "Controllable CAM Charges provision in Section 3 of Exhibit C to the Lease shall be deemed deleted from the Lease. Furthermore, as set forth under the Amendment the landlord has approved certain subleases entered into by and between the Company and sub tenants for portions of the facility. Prior to entering into the Amendment management of the Company evaluated options regarding the expiring Lease and determined that an extension was in the Company's best interests. Management believes that the Company remaining in its current facilities mitigates potential immediate operational disruptions and avoids the substantial costs associated with relocating to a new facility. The extension also provides additional time to explore and identify facilities that may better align with the Company's long-term needs. Additionally, the Company has renegotiated and extended agreements with subtenants,
01 Other Events
Item 8.01 Other Events. As of November 25, 2024, the Company has issued and outstanding approximately 4,469,444 shares of common stock. During September, October and November 2024 the Company has issued an aggregate of 627,011 shares of its common stock pursuant to the partial conversion of its outstanding Senior Secured Convertible Notes.
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Exhibit 10.1 Second Amendment to Westinghouse Blvd. Lease effective November 26, 2024 10.2 Westinghouse Blvd. Warehouse Lease dated August 27, 2019 (incorporated by reference as filed with the SEC on the Company's Form 10-Q on February 13, 2020 as Exhibit 10.1) 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: November 26, 2024 By: /s/ T. Ronan Kennedy Name: T. Ronan Kennedy Title: Chief Executive Officer and Chief Financial Officer