cbdMD, Inc. 8-K

What Happened

• cbdMD, Inc. announced a Third Amendment to its warehouse lease (effective May 20, 2026) for the facility at 2101 Westinghouse Blvd., Charlotte, NC, which also houses its executive offices. The amendment extends the lease for 62 months beginning October 1, 2026, with a new expiration date of November 30, 2031, and reduces the leased space to 40,000 square feet.

Key Details

• Lease term: 62-month renewal from Oct 1, 2026, through Nov 30, 2031.
• Space: reduced to 40,000 sq ft (company says sufficient for current and expected operations).
• Rent changes: monthly base rent reduced to $38,000/month for the initial year of the renewal term; base rent set at $9.75 per sq ft from Mar 1, 2025 through Feb 28, 2026, with annual increases up to $13.87/sq ft for the final two months of the amended term. Monthly base rent is abated Oct 1–Nov 30, 2026 (two months free). Company will continue to pay Additional Rent and other amounts required by the lease.
• Expected savings: approximately $450,000 per year in gross rent expense; net rent expense reduction of about $100,000–$120,000 per year after accounting for ongoing sublet rent.
• Document: the Third Amendment is filed as Exhibit 10.1 to the Form 8-K.

Why It Matters

• The amendment lowers near-term rent costs, trims the company’s physical footprint, and locks in occupancy through late 2031—moves management says align with current operations and reduce operating expenses. For investors, this can improve operating cash flow and reduce occupancy expense volatility, though it does not directly report revenue or earnings changes.