CBD producer Charlotte’s Web prepares for cannabis entry with $8M acquisition

https://biotuesdays.com/2020/04/21/charlottes-web-donates-1-million-us-worth-of-cbd-in-memory-of-charlotte-figi/

Bethan Rose Jenkins, Cannabis News Writer/Editorial

Charlotte’s Web Holdings – a hemp-based cannabidiol wellness products company launched by its founders, Stanley Brothers USA Holdings Inc., in 2014 – is stirring up a new batch of industry excitement.

According to recent news, the hemp-derived CBD company is set to embark on a fresh foray into the THC and cannabis markets.

Headquartered in Boulder, Colorado, Charlotte’s Web Holdings recently signed an $8 million purchase agreement that will enable it to assume control over the company. The agreement will stretch over five years.

Based on the terms of the deal, Charlotte’s Web will take charge of the business once cannabis is legalized federally across the U.S. The price is yet to be determined and will be dependent upon revenue and EBITDA figures.

“Consumer attitudes, market trends, and laws surrounding cannabis and its role within the wellness category continue to trend positively. This strategic Option provides Charlotte’s Web optionality to enter the U.S. cannabis wellness market in partnership with an experienced and trusted team and brand, positioning our business for potential new growth opportunities and shareholder value creation,” explained Charlotte’s Web CEO Deanie Elsner.

“The Stanley Brothers are innovating cannabis wellness with the same philosophy and vision that drove their success as founders of the Charlotte’s Web brand. With this shared heritage, we could not be more aligned.”

Who are the Stanley Brothers?

Jared and Joel Stanley are the only two founding members of Charlotte’s Web that maintain a position on CW’s board. Back when the CBD company was founded seven years ago, the duo were joined by Jon, Jordan, Austin, Josh and Jesse Stanley. Now, Jared and Joel will step down from their positions to oversee the forthcoming acquisition.

Stanley Brothers USA, the privately held Delaware company that CW has entered into an Option Purchase Agreement with, operates in Colorado, California and Florida. In the very near future, the company intends on expanding to eight new States.

In June of last year, the Stanley Brothers developed a brand new low-THC range of wellness formulations. Designed for controlled dosing, the products – which include oil tinctures, gummies and chocolates – also contain CBD and are marketed under the “ReCreate” brand name.

Charlotte’s Web unveils range of THC-free CBD oil tinctures to assist frontline heroes

Also in recent news, Charlotte’s Web confirmed that it would be launching Charlotte’s Web™ THC-Free† 25mg CBD Oil Tinctures in 10 or 30 milliliter sizes. The product launch, which was announced on March 8, stands to benefit civil service employees, fire fighters, healthcare workers, police officers, and hundreds of thousands of other daily frontline heroes.

The CBD oil tinctures are already being sold on the company’s official website. By April of this year, retail stores are expected to begin selling the quality-tested, non-GMO, THC-free products. Customers can pay either $24.99 for a 10 mL bottle or $59.99 for a 30 mL bottle, which contain no more than 0.01 percent THC, or 100 parts per million.

Charlotte’s Web trades on the Toronto Stock Exchange under the ticker “CWEB”.