CHARLOTTE, N.C.–(BUSINESS WIRE)–
cbdMD, Inc. (NYSE American: YCBD), today announced the closing of its previously announced underwritten public offering of 500,000 shares of its 8.0% Series A Cumulative Convertible Preferred Stock at a purchase price of $10.00 per share for total gross proceeds of $5,000,000, before deducting underwriting discounts, commissions and other offering expenses payable by the company. The shares are expected to begin trading on the NYSE American LLC under the symbol “YCBD PR A” on October 21, 2019. The shares are convertible into shares of cbdMD’s common stock at the holder’s option at a conversion price of $6.00 per share, or by cbdMD at a conversion price of $6.00 per share if the trading price of its common stock equals or exceeds $8.25 per share for at least 20 trading days in any 30 consecutive trading day period ending five days prior to the date of notice of conversion. The shares will not be redeemable for a period of four years from issuance, except upon the occurrence of a change of control.
The underwriters have been granted a 45-day option to purchase up to 75,000 additional shares of 8.0% Series A Cumulative Convertible Preferred Stock from cbdMD, exercisable in whole or in part, solely to cover over-allotments, at the public offering price less the underwriting discount.
cbdMD intends to use the net proceeds from the offering for working capital and other general corporate purposes.
ThinkEquity, a division of Fordham Financial Management, Inc., acted as sole-book running manager for the offering. The Benchmark Company, LLC and WestPark Capital, Inc. acted as co-managers for the offering.
http://www.sec.gov. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.” data-reactid=”16″>Copies of the final prospectus supplement and accompanying prospectus related to the offering may be obtained from ThinkEquity, a division of Fordham Financial Management, Inc., 17 State Street, 22nd Floor, New York, New York 10004, by telephone at (877) 436-3673, by email at prospectus@think-equity.com. Electronic copies of the final prospectus supplement and accompanying prospectus will also be available on the SEC’s website at http://www.sec.gov. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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