Cbdmd Inc. (NASDAQ: YCBD) stock fell by 1.64% at last close whereas the YCBD stock-price gained by 3.67% in the pre-market trading session. CBD tinctures, CBD capsules, CBD gummies, CBD topicals, CBD bath bombs, and CBD pet products are all available from Cbdmd, which is a nationally renowned consumer cannabidiol (CBD) company.
Cbdmd has set a public price of $7.50 per share for its underwritten public offering of 1,913,100 shares of its 8.0 percent Series A Cumulative Convertible Preferred Stock. The transaction is expected to generate Cbdmd $14,348,250 in gross revenues. The offering is scheduled to close on or around July 1, 2021, pending the fulfillment of normal closing conditions. The shares will be convertible into shares of cbdMD’s common stock at a conversion value of $6.00 per share at the holder’s option, or at a conversion price of $6.00 per share if the selling price of cbdMD’s common stock equals or surpasses $8.25 per share for at least 20 trading days in any 30 trading day period ending five days before the date of notice of conversion. Except in the event of a change of ownership, the shares will not be redeemable until October 16, 2023.
The underwriters have been given a 45-day option to acquire up to 286,900 additional shares of 8.0 percent Series A Cumulative Convertible Preferred Stock from cbdMD at the public offering price less the underwriting discount, applicable in whole or in part only to satisfy over-allotments.
The net proceeds from the transaction will be used by Cbdmd for working capital and other general corporate purposes. The offering’s only book-running manager is ThinkEquity, a part of Fordham Financial Management, Inc.
The shares mentioned above are being sold by Cbdmd in accordance with a shelf registration statement on Form S-3 (File No. 333-228773) previously filed with the Securities and Exchange Commission and later declared valid (SEC).