8-K: cbdMD Regains NYSE American Listing Compliance

cbdMD, Inc. announced it has regained full compliance with NYSE American continued listing standards, removing the '.BC' indicator.

Summary

• cbdMD, Inc. has regained full compliance with the continued listing standards of the NYSE American LLC.
• The Company received a letter from NYSE Regulation on December 5, 2025, confirming the resolution of previously identified deficiencies.
• Specifically, cbdMD resolved issues under Sections 1003(a)(i) and (ii) of the NYSE American Company Guide, which were referenced in letters dated June 5, 2024, and December 31, 2024.
• As a result, the below compliance (.BC) indicator has been removed, and the Company is no longer on the Exchange's list of noncompliant issuers, effective December 8, 2025.
• The Company will remain subject to NYSE Regulation's normal continued listing monitoring.

Sentiment

Score: 8

Explanation: The filing reports the successful resolution of a significant compliance issue, removing a major overhang and risk of delisting. This is a strong positive development for the company and its shareholders, indicating improved financial health and governance.

Positives

• Regained full compliance with NYSE American listing standards, eliminating the risk of delisting.
• The '.BC' indicator has been removed, improving the Company's public perception and investor confidence.
• Successfully resolved deficiencies under Sections 1003(a)(i) and (ii) of the NYSE American Company Guide.
• Management highlighted that a successful Series A Preferred share conversion in May 2025 and a capital raise completed in September 2025 were essential for strengthening the balance sheet and achieving compliance.

Risks

• The Company will remain subject to NYSE American's normal continued listing monitoring going forward.
• Actual results may differ materially from forward-looking statements due to various factors, including compliance with continued NYSE American listing requirements and general risks disclosed in the Company's SEC filings.

Future Outlook

The Company will remain subject to NYSE American's normal continued listing monitoring and is committed to maintaining strong financial discipline and governance going forward. Management looks forward to continuing to build long-term value for shareholders.

Management Comments

• "We are excited to share this important news with our shareholders, partners, and team. 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."
• "We believe our successful Series A Preferred share conversion in May and capital raise completed in September were essential components of our compliance strategy and demonstrated the commitment of our investors and stakeholders to cbdMD's long-term vision."
• "We appreciate the NYSE American for their constructive engagement throughout this process, and we look forward to continuing to build long-term value for our shareholders as we move ahead."

Industry Context

The CBD and hemp-derived products industry operates within a dynamic regulatory environment. Maintaining a listing on a major exchange like NYSE American is crucial for companies in this sector to ensure credibility, access to capital, and investor confidence. cbdMD's regaining of compliance strengthens its position by removing a significant operational and financial risk, potentially differentiating it from competitors facing similar listing challenges or operating with less financial stability.

Comparison to Industry Standards

• Maintaining a listing on a major exchange like NYSE American is a standard expectation for publicly traded companies, providing liquidity and investor confidence. cbdMD's regaining of compliance brings it back in line with these fundamental corporate governance and financial health standards.
• Companies in the evolving CBD and wellness sector often face scrutiny regarding financial stability and operational viability. cbdMD's actions to resolve listing deficiencies demonstrate a commitment to meeting these standards, which can differentiate it from smaller, less stable competitors in the industry.

Corporate Governance

Stakeholder Impact

• Shareholders: Positive impact due to the removal of delisting risk and improved investor confidence.
• Partners: Enhanced credibility and stability for business relationships.
• Employees: Increased job security and morale due to the company's strengthened position.

Next Steps

• The Company will remain subject to NYSE American's normal continued listing monitoring.
• The Company is committed to maintaining strong financial discipline and governance.

Key Dates

Recommendation

The resolution of NYSE American listing deficiencies removes a significant overhang and delisting risk, which is a strong positive catalyst for the stock. The actions taken, including a Series A Preferred share conversion and a capital raise, indicate a strengthened balance sheet and management's commitment to financial health. While specific financial performance metrics are not detailed, the removal of this fundamental risk factor makes the stock more attractive for investment, suggesting a 'buy' recommendation for investors looking for companies that have addressed critical operational risks.

Keywords

cbdMD, NYSE American, Listing Compliance, CBD, Hemp, Wellness, YCBD, Regulation FD, Form 8-K