cbdMD (YCBD) has released an update to notify the public and investors about an entry into a material definitive agreement.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
On February 1, 2024, cbdMD, Inc. entered into an agreement with five institutional investors, raising $1,250,000 through issuing convertible promissory notes totaling $1,541,666. These notes, bearing 8% annual interest and maturing on July 30, 2025, are convertible into common stock at an initial price of $0.684 per share, with provisions for price adjustments and a prepayment option subject to a premium. The agreement includes a Beneficial Ownership Limitation, ensuring investors do not exceed specific ownership thresholds, and obliges the company to seek shareholder approval for issuing excess shares. Additionally, the company secured a Registration Rights Agreement to facilitate the resale of conversion shares.
For further insights into YCBD stock, check out TipRanks’ Stock Analysis page.
For a comprehensive understanding of the announcement, you can read the full document here.