CHARLOTTE, NC - cbdMD (NYSE:YCBD), Inc. (NYSE American: YCBD), a North Carolina-based company specializing in perfumes, cosmetics, and other toilet preparations, has submitted a compliance plan to the NYSE American LLC as required to address its recent non-compliance with the exchange's continued listing standards.
On June 5, 2024, cbdMD received a notice from the NYSE American indicating that the company did not meet the exchange's listing requirements. Following this, cbdMD was given a deadline of July 5, 2024, to submit a plan detailing how it would regain compliance by December 5, 2025.
The company reported on Monday that it had met the July 5 deadline for submitting its compliance plan. While the details of the plan have not been disclosed, the company has informed the public that it includes actions intended to satisfy the listing standards within the given timeframe.
cbdMD anticipates a response from NYSE American regarding the acceptance of the plan and any further recommendations in August 2024. The company's management, under the leadership of CEO and CFO T. Ronan Kennedy, remains responsible for the execution of the plan and the overall strategic direction during this period.
The submission of the compliance plan is a crucial step for cbdMD in maintaining its listing on the NYSE American. The company's securities, including its common stock and 8% Series A Cumulative Convertible Preferred Stock, continue to be traded on the exchange under the symbols YCBD and YCBD PR A, respectively.
InvestingPro Insights
As cbdMD, Inc. (YCBD) navigates through its compliance challenges with the NYSE American, a glance at the company's financial health through InvestingPro data reveals a precarious situation. With a market capitalization of just $2.33 million and a significant sales decline of 25% over the last twelve months as of Q2 2024, the company's financial trajectory raises concerns. The revenue contraction is further highlighted by a quarterly decrease of nearly 30% in the same period. The gross profit margin remains relatively high at 62.7%, yet this figure is overshadowed by a steep operating income margin deficit of -33.93%, indicating operational challenges.
InvestingPro Tips suggest that cbdMD operates with a significant debt burden and may struggle with making interest payments, as evidenced by a negative P/E ratio of -0.19. The company's stock price volatility and analysts' expectations of continued unprofitability this year underscore the risks for potential investors. Moreover, the lack of dividend payments may detract income-focused shareholders. For those considering a deeper analysis of cbdMD's financials and future outlook, InvestingPro offers a comprehensive set of tips, including 11 additional insights that can be accessed through https://www.investing.com/pro/YCBD. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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