cbdMD raises $1.25M via convertible notes with 8% interest, automatic conversion price adjustments

cbdMD, Inc.

Gross proceeds $1.25M; aggregate principal $1.54M due to original issue discount.
Notes mature July 30, 2025; 8% interest; initial conversion price $0.684, floor $0.30, adjusts automatically.
Prepayment requires 125% of principal (25% premium); default interest up to 22%.
Company to seek shareholder approval within 90 days for conversion shares exceeding 19.99% of outstanding.
Notes secured by first-priority security interest on company assets.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

cbdMD, Inc. entered into Securities Purchase Agreement with five institutional investors valued at $1,250,000 gross proceeds (effective 2024-02-01).

Action: entry
Agreement: equity purchase
Counterparty: five institutional investors
Value: $1,250,000 gross proceeds
Effective: 2024-02-01

Exact text from the filing

Effective February 1, 2024 (the “Closing Date”), cbdMD, Inc. (the “Company”) entered into a Securities Purchase Agreement dated January 30, 2024 (the “Purchase Agreement”) with five institutional investors (the “Investors”) whereby the Investors advanced the Company an aggregate of $1,250,000 gross proceeds and the Company issued each Investor an Senior Secured Original Issue Discount Convertible Promissory Note, in the aggregate principal amount of $1,541,666 (the “Notes”).

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33 material agreements filed in the last 30 days. Browse all material agreements →

cbdMD, Inc. filing history →

Source: SEC EDGAR

accession 0001437749-24-002975

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