cbdMD greenshoe lifts 8% perpetual convertibles to $17.25 million

By Taylor Fox

New York, Dec. 11 – cbdMD, Inc. issued a total of $17.25 million of 8% series A cumulative convertible preferred stock, including a $2.25 million exercise of the greenshoe option by the initial purchaser of the notes, according to a news release.

cbdMD, Inc. sold 2.3 million shares of the convertibles at a purchase price of $7.50 per share, which included the full exercise of the over-allotment option of 300,000 shares.

As previously reported, the preferred stock is convertible at a conversion price of $6.00 for a conversion ratio of 1.667.

The company may force the conversion of the preferred stock if the trading price of stock equals or exceeds $8.25 for more than 20 trading days.

The stock is callable on or after Oct. 16, 2023. The securities are putable upon a change of control.

The preferred stock trades under the symbol “YCBDPrA.”

The company initially priced a $5 million, or 500,000 share, offering of the 8% series A cumulative convertible preferred stock at par on Oct. 10, 2019.

ThinkEquity, a division of Fordham Financial Management Inc., and The Benchmark Co. are bookrunners for the registered offering

cbdMD, Inc. intends to use the net proceeds from the offering for working capital.

cbdMD is a Charlotte, N.C.-based manufacturer and distributor of CBD products.

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