cbdMD, Inc. (NYSE American:YCBD) announced Wednesday it has entered into a third amendment to its warehouse lease at 2101 Westinghouse Boulevard, Suite A, Charlotte, North Carolina.
The amendment extends the lease term for 62 months starting October 1, 2026, with a new expiration date of November 30, 2031.
Under the terms, cbdMD will reduce its leased space to 40,000 square feet. The monthly base rent will be $38,000 for the first year of the renewal term.
From March 1, 2025, through February 28, 2026, the annual base rent will be $9.75 per square foot, with annual increases up to $13.87 per square foot for the final two months.
The amendment also provides a rent abatement from October 1, 2026, through November 30, 2026.
The cost reduction comes as the company aims to improve its financial position. cbdMD has a market cap of $7.75 million and revenue of $19.98 million over the last twelve months.
Management determined that extending the lease with a reduced footprint was appropriate for current and expected operations.
The amendment is expected to result in an annual reduction of gross rent expense by approximately $450,000 and net rent expense reduction of approximately $100,000 to $120,000 per year.
The warehouse also serves as cbdMD's executive offices. This information is based on a Form 8-K filing with the Securities and Exchange Commission.
In other recent news, cbdMD reported significant revenue growth for its second fiscal quarter of 2026, driven by a rise in wholesale sales and the acquisition of Bluebird Botanicals.
