cbdMD's Comeback: Inside the Strategy That Saved Its NYSE Listing

CHARLOTTE, NC – December 08, 2025 – In a significant turnaround for a key player in the wellness sector, cbdMD, Inc. (NYSE American: YCBD) today confirmed it has regained full compliance with the NYSE American's continued listing standards. The move, effective at the open of trading, scrubs the cautionary ".BC" indicator that has shadowed the company's stock for over a year, signaling to investors that the immediate threat of delisting has passed. But this is far more than a regulatory footnote; it is the culmination of a year-long, high-stakes battle to overhaul its financial structure and prove its resilience in the volatile hemp-derived products market.

The Brink of Delisting: A Year of Uncertainty

The company's journey back to compliance was a precarious one. The first formal warning arrived on June 5, 2024, when the NYSE American flagged cbdMD for failing to meet the standard outlined in Section 1003(a)(ii) of its Company Guide. This rule requires listed firms to maintain a minimum of $4 million in stockholders' equity. At the time, cbdMD's equity stood at just $3.1 million, a shortfall that placed its coveted public listing in jeopardy.

As the company worked under the pressure of a compliance plan, a second notice landed on December 31, 2024. This time, the deficiency related to Section 1003(a)(i), which mandates at least $2 million in stockholders' equity for companies that have posted losses in two of their last three fiscal years. With equity having dipped to just under $2 million and a history of recent losses, cbdMD was now non-compliant on two critical fronts. The ".BC" suffix attached to its ticker became a stark, daily reminder of its financial distress, often deterring institutional investors and clouding its market perception. The clock was ticking towards a final deadline of December 5, 2025, to resolve these issues or face removal from the exchange.

The Two-Pronged Financial Overhaul

Facing a potential delisting, cbdMD's management executed a decisive and multi-pronged strategy focused on fundamentally repairing its balance sheet. The two cornerstone actions were a major share structure conversion and a targeted capital raise, both designed to directly address the equity shortfalls.

The first critical maneuver occurred in May 2025 with the automatic conversion of its 8% Series A Cumulative Convertible Preferred Stock into Common Stock. This was far more than a simple reclassification of shares. The move surgically eliminated approximately $6.7 million in accrued dividend liabilities and removed a burdensome $4.0 million in perpetual annual dividend obligations. This single action provided immediate and substantial relief to the balance sheet, freeing up future cash flow and demonstrating a commitment to long-term financial health over short-term obligations. It was a bold move that restructured the company's foundational capital framework.

The second prong of the strategy was a direct injection of capital. In September 2025, cbdMD closed a $1.7 million private placement, issuing Series B Convertible Preferred Stock to institutional investors. The net proceeds of $1.5 million were explicitly aimed at bolstering shareholders' equity and providing necessary working capital. This infusion brought the company's cash position to over $2.2 million, providing the final push needed to climb back over the NYSE American's equity thresholds.

"Preserving our NYSE American listing was a critical achievement and reflects the tremendous work completed this year to strengthen our balance sheet and position the Company for sustainable growth," said CEO Ronan Kennedy in a statement. He credited both the share conversion and the capital raise as "essential components" of the successful compliance strategy, a clear acknowledgment of the deliberate financial engineering required to navigate the crisis.

Market Reaction vs. Analyst Outlook

Despite the positive resolution, the market's immediate reaction has been measured. Trading volume on the day of the announcement was relatively subdued, suggesting that while the news is welcome, many investors are adopting a "wait-and-see" posture. This caution is understandable given the stock's past volatility, which has seen significant price drops following previous quarterly earnings reports that missed expectations. It underscores that for investors, operational performance and consistent profitability remain the ultimate metrics of success.

However, this short-term market sentiment stands in stark contrast to a more bullish long-term outlook from financial analysts. The company currently holds a "Strong Buy" consensus rating, with an average 12-month price target of $2.00—representing a potential upside of over 200% from its current trading price. This divergence suggests that analysts who have dug into the company's restructuring see significant underlying value. They appear to be betting that with the balance sheet stabilized and the delisting threat removed, cbdMD is now undervalued and poised for significant growth as it executes its strategic plans.

A Competitive Edge in an Evolving Industry

Regaining its NYSE American listing provides cbdMD with more than just stability; it offers a distinct competitive advantage in the burgeoning but turbulent CBD industry. The global market for CBD and other hemp-derived products is projected to experience explosive growth, with some estimates forecasting an expansion from $11 billion in 2024 to over $200 billion by 2032. This growth is fueled by evolving consumer demand for functional wellness products targeting sleep, anxiety, and pain, as well as rising interest in minor cannabinoids like CBG and CBN.

Yet, the industry is fraught with challenges, including a complex and shifting regulatory landscape, inconsistent product testing standards, and intense competition. For many smaller or private companies, securing capital and building consumer trust in this environment is a monumental task. By maintaining its public listing, cbdMD secures continued access to capital markets, a vital tool for funding innovation, expanding marketing efforts, and potentially making strategic acquisitions. This financial access, combined with the transparency and governance required of a listed company, helps solidify its position as a trusted brand.

With a diversified portfolio that includes its core cbdMD line, Paw CBD for pets, Herbal Oasis THC seltzers, and the ATRx line of functional mushroom products, the company is well-positioned to capitalize on these expanding market segments. Having navigated its financial storm, cbdMD has demonstrated a strategic resilience that many of its competitors have yet to be tested on. The challenge now is to leverage its hard-won stability and translate it into sustained market share and profitability in one of the most dynamic sectors in modern wellness.