Chicago, Oct. 10 – cbdMD Inc. is offering $5 million of 8% series A cumulative convertible preferred stock, or 500,000 shares at $10.00 per share, according to a press release.
The underwriters have been granted a 45-day option to purchase an additional 75,000 shares.
The preferreds have no stated maturity and are convertible into shares of common stock at $6.00 per common share at the option of the holder.
The notes are provisionally callable at a conversion price of $6.00 per share after a four-year non-call period if shares exceed $8.25 for 20 out of 30 trading days.
The preferreds shares are also convertible upon a change of control resulting in a mandatory redemption.
The proceeds will be used for working capital and other general corporate purposes.
The shares are expected to begin trading on Oct. 21 under the symbol “YCBDP.”
The Charlotte, N.C.-based company is a hemp derived, consumer cannabidiol (CBD) brand.
| Issuer: | cbdMD Inc.
|
| Securities: | Convertible preferred stock, series A
|
| Amount: | $5 million
|
| Greenshoe: | $75,000
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| Maturity: | Perpetual
|
| Bookrunner: | ThinkEquity
|
| Co-manager: | Benchmark Co., LLC
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| Conversion price: | $6.00
|
| Call options: | Non-callable for four years, then provisionally callable at $8.25 price hurdle
|
| Takeover protection: | Yes
|
| Announcement date: | Oct. 10
|
| Settlement date: | Oct. 16
|
| Listing date: | Oct. 21
|
| Distribution: | SEC registered
|
| Stock symbol: | NYSE American: YCBD
|
| Stock price: | $3.13 at market close Oct. 10
|
| Market capitalization: | $86.76 million
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