cbdMD, Inc. Faces Listing Rule Concerns

TL;DR

cbdMD might get delisted, check exchange rules.

AI Summary

cbdMD, Inc. filed an 8-K on January 3, 2025, reporting events as of December 31, 2024. The filing indicates a potential delisting or failure to meet continued listing standards, and also includes information on other events and financial statements/exhibits. The company was formerly known as Level Brands, Inc. and Level Beauty Group, Inc.

Why It Matters

This filing signals potential issues with cbdMD's compliance with stock exchange listing requirements, which could impact its stock's tradability and investor confidence.

Risk Assessment

Risk Level: high — The filing explicitly mentions 'Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard,' indicating significant risk to the company's stock trading status.

Key Players & Entities

• cbdMD, Inc. (company) — Registrant
• Level Brands, Inc. (company) — Former Company Name
• Level Beauty Group, Inc. (company) — Former Company Name
• December 31, 2024 (date) — Reporting Date
• January 3, 2025 (date) — Filing Date

FAQ

Key Financial Figures

• $2 million — company to have stockholders' equity of $2 million or more if the listed company has repor
• $1,963,417 — Company reported stockholders equity of $1,963,417 as of September 30, 2024, and losses fr
• $4 million — Guide due to stockholders' equity under $4 million which addressed how the Company intends
• $4.67 million — accrued dividends, a liability totaling $4.67 million on September 30, 2024, into shares of C

Filing Documents

• ycbd20250103_8k.htm (8-K) — 30KB
• ex_762211.htm (EX-99.1) — 11KB
• 0001437749-25-000291.txt ( ) — 192KB
• ycbd-20241231.xsd (EX-101.SCH) — 4KB
• ycbd-20241231_def.xml (EX-101.DEF) — 13KB
• ycbd-20241231_lab.xml (EX-101.LAB) — 17KB
• ycbd-20241231_pre.xml (EX-101.PRE) — 13KB
• ycbd20250103_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 December 31, 2024, cbdMD, Inc. (the "Company") received notification (the "Notice") from the NYSE American LLC (the "NYSE American") that the Company is no longer in compliance with an additional NYSE American continued listing standard. Specifically, the letter states that the Company is not in compliance with the continued listing standard set forth in Section 1003(a)(i) of the NYSE American Company Guide (the "Company Guide"). Section 1003(a)(i) requires a listed company to have stockholders' equity of $2 million or more if the listed company has reported losses from continuing operations and/or net losses in two of its three most recent fiscal years then ended. The Company reported stockholders equity of $1,963,417 as of September 30, 2024, and losses from continuing operations and/or net losses in four of its five most recent fiscal years then ended. The Notice further provides that the Company remains subject to the conditions set forth in the NYSE American's initial non compliance notification dated June 5, 2024 and its compliance plan that was accepted by the NYSE American on August 20, 2024 for noncompliance under Section 1003(a)(ii) of the Company Guide due to stockholders' equity under $4 million which addressed how the Company intends to regain compliance with the continued listing standards by December 5, 2025 (the "Plan"). If the Company is not in compliance with the continued listing standards by December 5, 2025 or if the Company does not make progress consistent with the Plan during the Plan period, the Company will be subject to delisting procedures as set forth in the Company Guide. As previously disclosed, the Company is committed to undertaking a transaction or transactions in the future to achieve compliance with the NYSE American's requirements, including but not limited to seeking shareholder approval to convert its outstandin

01 Other Events

Item 8.01 Other Events. On January 3, 2025, in accordance with the NYSE American's procedures, the Company issued a press release discussing the matters disclosed in Item 3.01 above. 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 January 3, 2025 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: January 3, 2025 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