#United States #Charlotte, North Carolina #cbdMD #Herbal Oasis #ATRx Labs

cbdMD, Inc. Secures $2.25 Million in Funding

On December 19, 2025, cbdMD, Inc. (NYSE American: YCBD), a prominent name in the wellness industry and the parent company of various brands such as Herbal Oasis THC seltzers and ATRx functional mushroom supplements, disclosed a significant financial milestone. The company successfully closed a Series C Preferred Stock private placement, raising $2.25 million from institutional investors. This funding is expected to bolster the company’s operational capabilities and ongoing strategic efforts.

Details of the Funding

The Series C funding involved issuing a total of 1,000,000 shares of Series C Convertible Preferred Stock. With this move, cbdMD aims to generate approximately $2.1 million in net proceeds, which will be allocated for working capital and general corporate activities. Notably, the Series C shares come with a 10% annual dividend and offer investors the option to convert their holdings into common stock at a conversion price set at $2.25 per share. The rights and preferences attached to these shares align closely with those of the existing Series B Convertible Preferred Stock.

Ronan Kennedy, the Chief Executive Officer and Chief Financial Officer of cbdMD, expressed enthusiasm regarding this funding, stating, “We are pleased to continue strengthening our balance sheet to assist the Company's ongoing initiatives to expand distribution for its consumer brands and position cbdMD for sustained profitability.”

Strategic Initiatives Supported by This Funding

cbdMD's strategy revolves around enhancing its market presence and brand awareness across the U.S. The raised funds will facilitate the commercialization of its wellness products, which include a comprehensive range of hemp-derived cannabinoid offerings. This diverse product suite includes:

• - Herbal Oasis: Known for its THC-infused social seltzers that redefine social drinking.
• - ATRx Labs: A line of functional mushroom supplements designed to support focus, calmness, and overall vitality.
• - Paw CBD: A reputable brand offering CBD products for pets, contributing to the pet wellness market.

The company aims to utilize the capital for not only product development but also for enhancing distribution networks, thereby ensuring that their innovative wellness solutions reach a broader audience. The infusion of funds is expected to promote organic growth while assisting in broader marketing campaigns aimed at educating consumers about the benefits of cannabinoid products.

The Cannabis Industry Context

The announcement comes at a time of rapid growth in the cannabis industry, particularly in the wellness sector. As consumers continue to seek natural remedies, cbdMD’s positioning as a reputable provider of high-quality, hemp-derived products places it in a favorable position to capitalize on market trends. By securing additional funding, cbdMD reinforces its commitment to innovation and quality in a competitive landscape.

Conclusion

This Series C offering represents a clear step towards solidifying cbdMD’s financial health and operational preparedness. The expectation of using these funds to support ongoing strategic initiatives sets a positive tone for future growth, enabling the company to better cater to the evolving demands of the wellness market.

For more information about cbdMD and its product offerings, visit cbdMD's official website along with their other brands including Herbal Oasis and Paw CBD.

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Disclaimer

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any such offer will only be made by means of a prospectus that meets Securities and Exchange Commission requirements. Investors are urged to review all relevant risk factors associated with these investments.