cbdMD Enters Securities Purchase Agreements Issuing 1M Convertible Preferred Shares
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
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cbdMD announced that it has entered into securities purchase agreements with institutional investors whereby company issued the investors an aggregate of 1M shares of Series C convertible preferred stock in consideration of gross proceeds to the company of $2.25M. The company intends to use the net proceeds of approximately $2.1M for working capital general corporate purposes and support ongoing strategic initiatives. The Series C shares have a 10% annual dividend and are convertible at the option of the holder into the company's common stock at an initial conversion price of $2.25 per share, subject to certain anti-dilution protection provisions, with rights and preferences substantially the same as the company's issued and outstanding Series B convertible preferred stock.
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Analyst Views on YCBD
Wall Street analysts forecast YCBD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for YCBD is 2.00 USD with a low forecast of 2.00 USD and a high forecast of 2.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 0.754
Low
2.00
Averages
2.00
High
2.00
Current: 0.754
Low
2.00
Averages
2.00
High
2.00
About YCBD
cbdMD, Inc. is a consumer wellness company focused on the development, manufacturing, marketing, and sale of supplement brands powered by natural compounds. Its hemp-derived cannabinoids, include full-spectrum cannabidiol (CBD) formulations, hemp-derived Delta-9 THC products and a range of functional products designed to address key wellness needs, such as sleep, recovery, mood, discomfort, mobility, cognitive function, and stress management. It operates a multi-brand portfolio anchored by its flagship cbdMD line, which offers oils, gummies, capsules, soft-gels, topicals, functional formulations, and hemp-derived compliant Delta-9 THC products. Its Paw CBD pet-wellness brand provides tinctures, chews, and topicals for dogs and cats. Its ATRX platform offers non-cannabinoid functional ingredients such as functional mushrooms. Its Herbal Oasis (Oasis) brand is a premium hemp-derived THC-infused social seltzer that blends cannabinoids and nootropic mushrooms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
cbdMD Integrates Bluebird Assets to Enhance Compliance
- Strategic Acquisition: In January 2026, cbdMD acquired Bluebird Botanicals, which is expected to contribute approximately 10% revenue growth, enhancing its competitive edge in cannabinoid compliance by integrating Bluebird's GRAS assets with its clinical foundation.
- Compliance Science Initiative: cbdMD is launching an integrated GRAS and regulatory science program aimed at efficiently advancing high-value regulatory assets through its internal scientific and quality teams, thereby reducing reliance on costly external consultants and accelerating compliance processes.
- Safety Assessment Integration: The acquisition allows cbdMD to leverage Bluebird's self-affirmed GRAS determination for full-spectrum hemp extract, further solidifying its safety and efficacy in the industry and enhancing market trust.
- Future Development Strategy: The CEO of cbdMD stated that by integrating Bluebird's GRAS work with its scientific platform, the company is building a robust foundation for future federal regulation and healthcare innovation, ensuring a competitive advantage in an evolving regulatory landscape.
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cbdMD Acquires Bluebird Botanicals, Strengthening Long-Term Growth Foundation
- Acquisition Completed: cbdMD has successfully acquired substantially all assets of Bluebird Botanicals through an equity issuance and earnout shares, which is expected to provide a stable revenue base and further drive its long-term growth strategy.
- Synergies Realized: Management anticipates operational efficiencies through consolidated supply chains, manufacturing, and shared services, enhancing cross-selling opportunities between the two brands to accelerate revenue growth across both direct-to-consumer and retail channels.
- Intellectual Property Expansion: The acquisition adds a portfolio of intellectual property, including patented technologies, which may enhance the company's strategic flexibility in the evolving regulatory landscape and support future innovations.
- Profitability Goals: cbdMD's CEO stated that this transaction will strengthen the revenue foundation, support the goal of achieving positive EBITDA and net income, and further solidify its leadership position in the CBD industry.
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