dividend
confidence high
sentiment negative
materiality 0.75
cbdMD suspends Series A Preferred dividend, proposes mandatory conversion to common shares
cbdMD, Inc.
- Monthly cash dividend on 8% Series A Preferred suspended starting Aug 31, 2023 to conserve cash.
- Unpaid dividends accumulate; after 12 months of non-payment, preferred holders can elect two additional directors.
- Board proposes converting each Series A Preferred share into 3 common shares; special meeting vote on Sept 22, 2023.
- Amendment requires majority of common and 2/3 of preferred votes; if passed, preferred rights and accrued dividends are forfeited.
- Suspension may limit ability to raise capital under existing Form S-3 registration statement.