x

Posted 13 June, 2022

cbdMD, Inc. appointed new CEO

CEO Change detected for ticker NYSE:YCBD in a 8-K filed on 13 June, 2022.


  On June 11, 2022, Mr. Martin A. Sumichrast entered into a Separation Agreement (the "Separation Agreement") with cbdMD, Inc. (the "Company") and its subsidiaries whereby he resigned as the Company's Chief Executive Officer, member of the Board of Directors, employee, and all other capacities from the Company, effective June 11, 2022.  

Don't how to trade CEO change? Read Reasons for CEO Turnover and Effect on Stock Performance.
Overview of cbdMD, Inc.
Health Care/Life Sciences • Pharmaceuticals
cbdMD, Inc. engages in the business of operating cannabidiol brands such as Paw cannabidiol and cbdMD botanicals. Its product categories include CBD tinctures, gummies, topical, and bath bombs. The company was founded on March 17, 2015 and is headquartered in Charlotte, NC.
Market Cap
$2.12M
View Company Details
cbdMD, Inc. by TradingView
Relevant filing section
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. 


On June 11, 2022, Mr. Martin A. Sumichrast entered into a Separation Agreement (the "Separation Agreement") with cbdMD, Inc. (the "Company") and its subsidiaries whereby he resigned as the Company's Chief Executive Officer, member of the Board of Directors, employee, and all other capacities from the Company, effective June 11, 2022. His resignation on June 11, 2022 was pursuant to Section 6(e) of his Employment Agreement dated April 19, 2022 (the "Employment Agreement"). Under the Separation Agreement, Mr. Sumichrast also agreed to release the Company, its shareholders, directors, officers, employees and agents from all claims, whether known or unknown, related to his employment. The agreement also contains customary non-disclosure and non-disparagement provisions.


In consideration for Mr. Sumichrast's acknowledgments, representations, warranties, covenants, releases, and agreements set forth in the Separation Agreement, the Company agreed to pay Mr. Sumichrast $590,000, payable in accordance with the Company's past payroll practices over a 16 month period, commencing within 21 days after June 11, 2022. As further consideration, the Company also agreed to pay Mr. Sumichrast a sum equal to the cost for Mr. Sumichrast to continue his current medical insurance coverage for 12 months through the Consolidated Omnibus Budget Reconciliation Act ("COBRA"), commencing within 21 days after June 11, 2022. In further consideration, subject to Mr. Sumichrast's compliance with the Separation Agreement, the Company shall issue 400,000 Restricted Stock Units ("RSU") to acquire restricted shares of Common Stock to Mr. Sumichrast, vesting as follows: 200,000 RSUs to vest on July 1, 2022 and 200,000 RSUs to vest on January 1, 2023. Previously issued and unvested RSUs terminate in accordance with the grants and Separation Agreement. The description of the terms and conditions of the Separation Agreement with Mr. Sumichrast is qualified in its entirety by reference to the agreement which is filed as Exhibit 10.1 to this report.