Charlotte's Web Holdings, Inc.
US OTCQX: CWBHF
CA CSE: CWEB [CSE25 Index Member] Charlotte's Web Holdings, Inc. (CWEB:CA) has gone public in Canada (CSE) via IPO on August 30th 2018
The latest in a growing list of U.S. businesses looking north of the border to raise capital. The firm is the parent company of CW Hemp, the manufacturer of Charlotte’s Web CBD products, that was catapulted into the media spotlight in 2013 when it was featured in the CNN documentary “Weed.” While the story of Charlotte’s Web garnered international exposure, little has been shared publicly about Stanley Brothers operations and financials – until now. According to the firm’s preliminary prospectus Stanley Brothers, the company has been steadily posting an annual profit since 2016. Its filing shows: Revenue grew from $14.7 million in 2016 to $40 million in 2017, up 172% year-over-year. Gross profit grew from $9.6 million in 2016 to $29.9 million in 2017, a 212% spike. Gross profit as a percent of revenue was 65% and 75% in 2016 and 2017, respectively. Adjusted EBITDA grew from $2 million in 2016 to $14.1 million in 2017; adjusted EBITDA as a percent of revenue was 14% and 35% in 2016 and 2017, respectively. For the three months ended March 31 2018, the company posted revenue of $13.1 million, gross profit of $10.5 million and adjusted EBITDA of $4.5 million. Other highlights from the filing include: The firm has more than 170 employees, with hemp cultivation operations in northeastern Colorado.
It also has source contracts in place with farms in Kentucky and Oregon. In 2017, the firm estimated its market share at roughly 14%, based on its $40 million in revenue in an estimated $287 million hemp CBD market. The firm’s liquid products are priced from $39.99 to $274.99. Its capsules sell for $34.99 to $119.99. For its fiscal 2018, the firm projects sales of $65 million to $80 million, with estimated annual adjusted EBITDA of $23 million to $30 million.
Issued & Outstanding: 17,247,246
Charlotte’s Web Holdings Inc.
2425 55th Street, Suite 200
Boulder, Colorado, 80301
Phone: (416) 594-3849
CORRIENTE MASTER FUND II, LP INCREASES OWNERSHIP IN CHARLOTTE'S WEB HOLDINGS, INC.
Toronto, Ontario – October 31, 2018 – Corriente Master Fund II, LP (“Corriente”) announced that effective October 29, 2018 it has increased its ownership in the capital of Charlotte’s Web Holdings, Inc. (the “Issuer”) by another 2% through acquisitions on the Canadian Securities Exchange (the “CSE”). Together with the 2,149,700 common shares of the Issuer previously owned by Corriente, which represented approximately 12.46% of the then issued and outstanding common shares of the Issuer and approximately 2.32% of the then total voting rights of the Issuer, Corriente now owns and controls a total of 2,592,500 common shares of the Issuer, or approximately 15.03% of the issued and outstanding common shares of the Issuer and approximately 2.79% of the total voting rights of the Issuer. Corriente Advisors, LLC is the investment manager of Corriente. Corriente acquired the common shares for investment purposes, and may acquire further common shares or dispose of its holdings of the common shares, as investment conditions warrant. The Issuer is listed on the CSE under the symbol “CWEB”.
Charlotte's Web CEO Hess Moallem appeared on CNBC Squawk on the Street this morning. The interview aired just before 11am ET and touched on a handful of topics including the legalization of marijuana in Canada and its potential impact on the CBD market, broader cannabis regulations in the U.S., sales of Charlotte’s Web products in the U.S. as a core market with plans to expand internationally, and the Bi-partisan support for the Farm Bill.
Hess concluded by reminding the audience that Charlotte’s Web, unlike many cannabis companies, has established revenue, significant profitability and is focused on the momentum of its market share expansion.
The interview can be viewed here: https://www.cnbc.com/video/2018/10/17/canada-marijuana-cannabis.html
CBD Leader Charlotte’s Web Holdings, Inc. Surpasses 3000 Locations as Mainstream Market Grows
BOULDER, COLORADO, October 16, 2018 — (CSE: CWEB; OTCQX: CWBHF) Charlotte’s Web Holdings, Inc. (“Charlotte’s Web” or the “Company”), the market share leader in hemp-based CBD wellness products, has surpassed 3000 retail locations across the United States. At the end of 2017, Charlotte’s Web products were sold in approximately 2,000 locations. The Company disclosed today that it surpassed its 2018 year-end goal of 3,000 locations during the 3 rd quarter. “Firstly, I would like to commend our incredible and committed staff who worked tirelessly to achieve this milestone,” stated Charlotte’s Web CEO Hess Moallem. “I would also like to thank our dedicated retail partners for their continued support of our mission and for valuing the trust that is closely associated with our brand name.” With CBD gaining mainstream market momentum, Charlotte’s Web, the industry pioneer and category leader in hemp-based CBD, has expanded its suite of product offerings across a wider variety of retailers, from small specialty health food stores to now including regional pharmacy and grocery chains. The Company recently added more than 40 Bartell drug stores in the North West. Mr. Moallem added, “While we are thrilled to beat our retail expectations for the year, we know this is just the beginning of our continued expansion both domestically and worldwide. We are deeply committed to the millions of people who benefit from Charlotte’s Web and we will continue breaking new ground to ensure our products are made available in as many retail locations as possible.” In September at Natural Products EXPO East 2018, Charlotte’s Web took home The NEXTY Consumer Choice Award. The NEXTY Award recognizes innovative natural products that inspire and uphold industry integrity. Charlotte’s Web was selected from a group of 57 finalists. The Company recently completed a brand and consumer packaging refresh.
OTC Markets Group Welcomes Charlotte's Web Holdings, Inc. to OTCQX
OTC Markets Group Inc. (OTCQX: OTCM), operator of financial markets for 10,000 U.S. and global securities, today announced Charlotte's Web Holdings, Inc. (CSE: CWEB; OTCQX: CWBHF), ("Charlotte's Web" or "the Company") the market leader in the production and distribution of innovative hemp-based cannabidiol ("CBD") wellness products, has qualified to trade on the OTCQX® Best Market.
Charlotte's Web Holdings begins trading today on OTCQX under the symbol "CWBHF." U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcmarkets.com. Trading on OTCQX provides broader access for U.S. investors interested in investing in Charlotte's Web.
"Charlotte's Web Holdings joins a robust roster of CSE-listed companies that choose to cross-trade on the OTCQX Market to provide greater transparency and more efficient trading for their investors globally," said Jason Paltrowitz, Executive Vice President of Corporate Services at OTC Markets Group. "We look forward to supporting Charlotte's Web Holdings as the company works to build visibility, liquidity and long-term shareholder value."
"As the market leader, we have a substantial base of customers in the United States," said Hess Moallem," President & CEO of Charlotte's Web. "Accordingly, we have a substantial U.S. investor following and trading on the OTCQX Market will improve accessibility, liquidity and exposure for investors in the U.S."