cbdMD, Inc. Material Event - What Happened

Okay, so here's the rundown on what's been happening with cbdMD, Inc., explained in a way that cuts through the jargon. Think of this as me telling you the news over coffee.

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1. What happened? (The actual event, in plain English)

Alright, so here's the big news: cbdMD just announced some really good news: they've officially gotten back in good standing with the NYSE American stock exchange. This means they've fixed the issues that were putting their stock at risk of being removed from the exchange.

Think of it like a student who was on academic probation finally getting their grades up and being taken off probation – they're back on track and no longer at risk of being kicked out of school.

2. When did it happen?

This all went down on the company received official confirmation from NYSE Regulation on December 5, 2025, and then shared the news publicly in a press release on December 8, 2025.

3. Why did it happen? (The backstory and context)

So, why did this happen? Well, it looks like for a while now, cbdMD had been struggling to meet some of the NYSE American's 'continued listing standards.' These are basically rules that companies listed on the exchange have to follow to stay listed, often related to things like their stock price, market value, or financial health. Specifically, they had issues with Sections 1003(a)(i) and (ii) of the Exchange's rules, which typically relate to a company's financial condition or operating results. They received notices about these problems back in June and December of 2024.

The 'why' now is that they've successfully addressed those problems. This means they've likely improved their financial situation, perhaps through better sales, cost cutting, or other strategic moves, to the point where they now meet the exchange's requirements again.

4. Why does this matter? (The "so what?" for everyone)

Alright, so why should you care about this? This event is a big deal because it could mean cbdMD has avoided a major negative event: being delisted from the NYSE American. If a company can't meet these standards, its stock can get delisted, meaning it would be removed from the exchange. Delisting can make it much harder for investors to buy and sell the stock, and it often signals serious financial trouble, which can hurt the company's reputation and ability to raise money.

It might mean regaining compliance removes a major cloud of uncertainty over the company. It shows they've made progress in stabilizing their business and financial health, and it keeps their stock trading on a major exchange, which is generally seen as a positive sign of stability and credibility.

5. Who is affected?

Who's going to feel this?

• For cbdMD itself: They've avoided the significant negative consequences of delisting, which would have been a huge blow to their reputation and operational flexibility. This gives them more stability and credibility.
• For customers: Less direct impact, but a more stable company is generally better for product availability and brand trust.
• For employees: This removes a major source of uncertainty and potential stress. Avoiding delisting can improve morale and job security as it signals the company is on a more stable path.
• For investors/shareholders: This is great news! Their shares will continue to trade on the NYSE American, which means better liquidity (easier to buy and sell) and avoids the potential for forced selling or the stock moving to a less prestigious, often more volatile, 'over-the-counter' market. It also suggests the company's financial health has improved.
• Maybe even competitors: While not directly affected, it means cbdMD remains a player on a major exchange, maintaining its competitive standing.

6. What happens next? (Immediate and future implications)

So, what's the next chapter in this story? cbdMD will likely immediately see the 'below compliance' (.BC) indicator that was attached to their stock symbol removed, and they'll no longer be on the NYSE American's list of noncompliant companies. This is a public signal that they're back in good standing.

In the longer run, we should keep an eye on how they maintain this compliance. They'll still be monitored by NYSE Regulation, just like any other listed company, to ensure they continue to meet all the listing standards. The key for cbdMD will be to maintain this compliance by continuing to improve their financial performance and operational stability. This could lead to a more stable and trustworthy company in the eyes of the market.

7. What should investors/traders know? (Practical takeaways)

Okay, if you're an investor or just someone watching the stock, here's the practical stuff:

• Keep an eye on: This is a significant positive development. It removes a major risk factor that had been hanging over the company. Watch for their next earnings reports to see if the underlying financial improvements that led to this compliance are sustainable.
• Consider: If you were concerned about potential delisting, this news should alleviate those fears. It could make the stock more attractive to a wider range of investors who might have avoided it due to the compliance issues.
• Remember: While this is good news, it doesn't automatically mean the company is out of the woods entirely. It means they've cleared a major hurdle. Continue to evaluate their overall business performance and market position.