Seeks To Identify Novel Cannabinoids For Therapeutic Use

cbdMD, Inc. (NYSE American: YCBD, YCBDpA), one of the leading, and most highly trusted and recognized CBD companies, announced today that its recently formed division, cbdMD Therapeutics, has initiated talks with one of the leading US cannabinoid research institutes, to identify novel cannabinoids for therapeutic use. The Company also anticipates the identification of dietary supplement applications through this process. The Company expects to finalize the agreement with the research institute and commence studies by Fall 2021. The intended purpose of these studies is to provide data that will feed into the cbdMD Therapeutics research pipeline. Following the execution of this work, cbdMD Therapeutics will perform the requisite toxicological studies with Ion Tox, a leading in vitro toxicology and ADME-PK testing company, to support the safety of the cannabinoids of interest. This safety data will support the ensuing preclinical trials in humans to explore the efficacy of the cannabinoids. This work will support potential future applications for Investigational New Drugs (INDs) with FDA’s Center for Drug Evaluation and Research (CDER) in humans and animals.

“cbdMD began its first phase of research in the Fall of 2020, with its first in vivo animal study and clinical trials. The second phase of research is now underway to identify promising cannabinoids for both human and pet drug therapies. As an additional benefit of our comprehensive therapeutics research plan, we anticipate our research results will also allow our cbdMD, Paw CBD and cbdMD Botanicals brands to make certain claims on our consumer products, such as reducing inflammation, supporting healthy sleep, promoting recovery from strenuous activity, maintaining focus and positive mood, and improving mobility. The ability to make scientifically backed claims in the dietary supplement space will further elevate our brands’ reputation and marketability, especially as we now anticipate the full integration and widespread acceptance of CBD in channels of distribution currently unavailable, including Food Drug and Mass (FDM), third-party marketplaces, such as Amazon, and international marketplaces worldwide. In addition to these new distribution channels, we expect opportunities to become available to market, advertise and sponsor CBD products across all major TV networks, sports leagues, and ecommerce platforms for those CBD companies that have proven clinical data to support their products. The investments we are making today not only elevate the cbdMD brands, but raises the bar for the entire CBD industry,” said Martin Sumichrast, Chairman & co-CEO of cbdMD, Inc.

“The potential opportunity to discover how cannabinoids can provide significant health and medical benefits for human and animals is incredible. cbdMD intends to partner with leading research institutes, global drug development companies, and like-minded brands, to unlock the potential benefits of cannabinoids,” said Dr. Sibyl Swift, VP, Scientific & Regulatory Affairs.

About cbdMD, Inc.

cbdMD, Inc. is one of the leading and most highly trusted and most recognized cannabidiol (CBD) brands with a comprehensive line of U.S. produced, THC-free¹ CBD products. Our cbdMD brand currently includes over 130 SKUs of high-grade, premium CBD products including CBD tinctures, CBD gummies, CBD topicals, CBD capsules, CBD bath bombs, CBD bath salts, CBD sleep aids and CBD drink mixes. Our Paw CBD brand of pet products includes over 45 SKUs of veterinarian-formulated products including tinctures, chews, topicals products in varying strengths, and our CBD Botanicals brand of beauty and skincare products features 15 SKUs, including facial oil and serum, toners, moisturizers, clear skin, facial masks, exfoliants and body care. To learn more about cbdMD and their comprehensive line of U.S. grown, THC-free¹ CBD oil products, please visit www.cbdmd.com, follow cbdMD on Instagram and Facebook, or visit one of the 6,000 retail outlets that carry cbdMD products.

¹ THC-free is defined as below the level of detection using validated scientific analytical methods.

Forward-Looking Statements

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as ''should,'' ''may,'' ''intends,'' ''anticipates,'' ''believes,'' ''estimates,'' ''projects,'' ''forecasts,'' ''expects,'' ''plans,'' and ''proposes.'' These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, but not limited to, results from research studies. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" in cbdMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended September 30, 2020 as filed with the Securities and Exchange Commission (the "SEC") on December 22, 2020, Item 1A. Risk Factors, contained in our Quarterly Report on Form 10-Q for the period ended March 31, 2021 as filed with the SEC on May 12, 2021 and our other filings with the SEC. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of cbdMD, Inc. and are difficult to predict. cbdMD, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. The information which appears on our websites and our social media platforms, including, but not limited to, Instagram and Facebook, is not part of this press release.

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