cbdMD Inc. (YCBD) shares climbed 54.64% in after-hours trading Thursday, hitting $0.98 after the company announced it had successfully regained full compliance with NYSE American listing standards. The stock closed regular trading at $0.63, down 0.63% on the day.
Back in Good Standing
The Charlotte-based wellness and hemp-derived products company announced Monday that the NYSE American removed its ".BC" noncompliant issuer label at the start of trading. That little suffix matters more than you'd think—it's essentially a scarlet letter telling investors the company is on thin ice with exchange requirements.
According to cbdMD, the NYSE American sent a letter last week confirming that deficiencies related to Sections 1003(a)(i) and (ii) of the NYSE American Company Guide had been resolved. Those sections govern shareholders' equity and net loss requirements that, when violated, can lead to delisting.
The company noted it remains subject to NYSE American's continued listing monitoring procedures, so they're not entirely out of the woods yet. Still, cbdMD emphasized its commitment to maintaining strong financial discipline and governance going forward.
How They Fixed It
CEO Ronan Kennedy said the NYSE American listing "was a critical achievement and reflects the tremendous work completed this year to strengthen our balance sheet." He pointed to two specific moves: a Series A preferred share conversion back in May and a capital raise in September. Those financial maneuvers proved essential to the company's compliance strategy.
The Bigger Picture
Despite Thursday's after-hours pop, cbdMD shares are down 80.94% year to date. The company currently has a market capitalization of $5.58 million, with shares trading in a 52-week range between $0.47 and $6.54. That wide range tells you everything you need to know about the volatility shareholders have endured.
Market data indicates YCBD is experiencing long-term consolidation alongside medium and short-term upward movement, though whether this compliance news marks a genuine turning point remains to be seen.