cbdMD (YCBD) board member receives 1,572 RSUs as equity compensation
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Raines William F III reported acquisition or exercise transactions in this Form 4 filing.
cbdMD, Inc. director William F. Raines III received a grant of 1,572 restricted stock units, each representing one share of common stock, as compensation for his service on the board. The grant carried no cash purchase price.
The restricted stock units vest in four quarterly installments on June 30, 2026, September 30, 2026, December 31, 2026, and March 31, 2027, under the company’s 2021 or 2025 Equity Compensation Plan. Following this award, Raines holds 13,676 shares of the company’s common stock directly.
Positive
- None.
Negative
- None.
Insider Trade Summary
1 transaction reported
Mixed
1 txn
Insider
Raines William F III
Role
Director
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Common Stock | 1,572 | $0.00 | -- |
Holdings After Transaction:
Common Stock — 13,676 shares (Direct)
Footnotes (1)
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Key Figures
RSUs granted: 1,572 units
Grant price per share: $0.00 per share
Shares after transaction: 13,676 shares
+1 more
4 metrics
RSUs granted
1,572 units
Restricted stock unit award to director on April 14, 2026
Grant price per share
$0.00 per share
Stated transaction price for RSU grant
Shares after transaction
13,676 shares
Director’s direct holdings following RSU grant
Number of vesting dates
4 installments
Quarterly vesting through March 31, 2027
Key Terms
restricted stock units, Section 16(b), Rule 16b-3, Equity Compensation Plan, +1 more
5 terms
restricted stock units financial
"Represents restricted stock units. Each restricted stock unit represents a contingent right to receive one share"
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
Section 16(b) regulatory
"The grant was exempt from Section 16(b) under the Securities Exchange Act of 1934"
A federal rule that requires company insiders—like officers, directors and large shareholders—to return any profits made from buying and selling the company’s stock within a six-month window. It matters to investors because it discourages short-term trades that could exploit non-public information and helps protect outside shareholders by creating a simple, enforceable way to recover unfair gains, much like a rule stopping someone from flipping a limited-edition item for quick profit after getting early access.
Rule 16b-3 regulatory
"by virtue of Rule 16b-3 promulgated thereunder as it was approved in advance"
Rule 16b-3 is a Securities and Exchange Commission regulation that exempts certain routine, pre-approved transactions by company insiders from automatic liability for short-term trading profits. It acts like a safe harbor: if an insider follows a formal plan or the board approves specific transactions in advance, profits from buying and selling company stock within six months are not automatically reclaimed. Investors care because the rule clarifies when insider trades are permissible and reduces uncertainty about potential clawbacks.
Equity Compensation Plan financial
"The restricted stock units were issued under the 2021 or 2025 Equity Compensation Plan"
A plan by which a company gives employees, directors or contractors ownership or the right to buy ownership in the company through stock, options or similar awards — think of promising slices of the company pie as part of someone's pay. It matters to investors because these awards can change the number of shares outstanding, affect reported profits and influence management’s decisions; large or generous plans can dilute existing holders and alter incentives over time.
non-employee directors regulatory
"Committee, which is comprised of three non-employee directors"
FAQ
What did cbdMD (YCBD) director William F. Raines III receive in this Form 4?
William F. Raines III received 1,572 restricted stock units of cbdMD common stock as board compensation. Each unit represents a right to one share, granted at no cash cost, under the company’s equity compensation plan for director services.
How and when do the cbdMD (YCBD) restricted stock units granted to Raines vest?
The 1,572 restricted stock units vest in four quarterly installments through early 2027. Scheduled vesting dates are June 30, 2026, September 30, 2026, December 31, 2026, and March 31, 2027, contingent on continued service under cbdMD’s equity compensation plan.
Under which plan were the cbdMD (YCBD) restricted stock units issued to Raines?
The restricted stock units were issued under cbdMD’s 2021 or 2025 Equity Compensation Plan. They were granted as compensation for Raines’s service on the board of directors and approved in advance by a committee of three non-employee directors.
How is the cbdMD (YCBD) grant to Raines treated under Section 16(b)?
The grant was exempt from Section 16(b) short-swing profit rules under Rule 16b-3. It was approved in advance by cbdMD’s Compensation, Corporate Governance and Nominating Committee, which is composed of three non-employee directors, qualifying it for this exemption.