Charlotte's Web Holdings Inc (CWBHF)

[GE_Jim]

Good luck to you as well

[DarthYoda]

Well, this company has destroyed my long term interest in seeing hemp become a legitimate thriving industry. I wont be posting here anymore and am moving on to spend my time on something other than hoping for the government to fix the purposely broken hemp industry or for this company to do anything at all in the interest of its shareholders. Good luck to you guys.

[DarthYoda]

https://www.charlottesweb.com/blog/cbd-oil-price-reduction

[DarthYoda]

Google "Fentanyl DEA" and just look at what's been going on all over the country in just this past week...
https://www.google.com/search?q=fentanyl+DEA&sca_esv=2afe524f36ca658b&tbm=nws&source=lnms&sa=X&ved=2ahUKEwikxcG7_JyEAxVfkokEHekrAk0Q_AUoAXoECAEQAw&biw=1488&bih=790&dpr=1.25

[DarthYoda]

My younger cousin died from somehow running into fentanyl back in October. Our government did that on purpose.

[DarthYoda]

The problem is we don't have a legitimate government across the board and that has been the case for a long time now. I'm also convinced the entire way that public markets are set up is a purposeful scam. From the pinks to the big boards. The entire format is a joke for being 2024. L2 is a joke. Disclosure, auditing, reporting is a joke. Accountability to shareholders is a joke. SEC is a major joke. FDA needs to be prosecuted for crimes against humanity and treason. I can go on and on, but you get it.

[GE_Jim]

That’s a good overview. CBD or THC, grass, the story has the same roadblocks. Doesn’t matter if its Congress, HHS, DEA, FDA, it’s all about somebody in government to sign off on it. It’s been a long road already and still many more pitfalls to go, IMO.
I do believe at some point everything will be given a green light for some real open field running, but until then were all just waiting on the government.

[DarthYoda]

Ok scumbags. No more DD for you. Back to vacation.

[DarthYoda]

Once again the scamming traders wait for me to post before dumping shares. Never fails. The gay corporate banking mafia strikes again.

[DarthYoda]

I put very little weight on what the Feds say about rescheduling cannabis and think other bills could pass first. Probably smart to still keep an eye on those other bills.

[DarthYoda]

"Federal Marijuana Banking Act Gains Three New US House Sponsors, Now Has 103":
Feb 7, 2024

Just one day after the SAFE Banking Act gained its 100th sponsor in the United States House of Representatives, three new lawmakers have joined as cosponsors.

https://themarijuanaherald.com/2024/02/federal-marijuana-banking-act-gains-three-new-us-house-sponsors-now-has-103/
https://themarijuanaherald.com/2024/02/us-house-bill-to-allow-marijuana-banking-gains-100th-sponsor/

[DarthYoda]

"A summary of pending federal cannabis legislation":
February 7, 2024
https://www.reuters.com/legal/litigation/where-things-stand-summary-pending-federal-cannabis-legislation-2024-02-07/

[DarthYoda]

"A Look at the Federal Marijuana Bills With the Most Sponsors":
January 29, 2024
https://themarijuanaherald.com/2024/01/us-congress-a-look-at-the-federal-marijuana-bills-with-the-most-sponsors/

[Fangster]

You’re right regarding the equity comp!

[DarthYoda]

Insys did also make and sell synthetic CBD...good riddance...
https://www.azbio.org/parallel-comparison-analyses-confirm-that-insys-therapeutics-synthetic-cbd-is-identical-in-chemical-structure-to-plant-derived-cbd

[DarthYoda]

What else were the makers of dronabinol/marinol up to over the past several years? Oh, nothing, just a lil bankruptcy, delisting, federal prison sentences for knowingly fueling the opioid epidemic, and constantly lobbying the feds to keep weed at schedule 1 while they purposely oversold their best seller, liquid fentanyl, to all the super smart and responsible doctors of America. The 2023 movie Pain Hustlers is based on the story of Insys.
https://www.pbs.org/wgbh/frontline/article/opioid-maker-insys-executives-sentenced-prison-subsys/
https://www.menshealth.com/entertainment/a45707347/john-kapoor-now-pain-hustlers-netflix/

[DarthYoda]

Historical reminder: Synthetic THC was rescheduled from schedule 1 to schedule 2 in 1986. It was then further rescheduled to schedule 3 in 1999. Read the history section...
https://en.m.wikipedia.org/wiki/Dronabinol
Also, read about the purported "differences" between Dronabinol(Marinol) and naturally occurring THC, then LoL to yourself, shake your head, and consider picking up a torch or pitchfork...
https://www.goodrx.com/dronabinol/marinol-vs-marijuana-whats-the-difference

[DarthYoda]

They did that in prior years as well actually. If you scroll through the list of disclosures filed in the past, you'll see around each February there are the same flood of form 4s in 2022 and 2023. It's because the exec salaries were paid for with shares. When that is the case, the shares must be immediately sold regardless of price, thus all the seemingly rushed selling, our new new low, and all the divergence in the secondary chart indicators you mentioned.
https://www.otcmarkets.com/stock/CWBHF/disclosure

[ap17]

Good question.

[GE_Jim]

Just a quick footnote. The Enterprise Value 33.41M, the market cap as you mentioned is about 7 million less. Just wanted to note that.

[GE_Jim]

Hello Darth, thanks for keeping me in the loop. Yes, I did read the extension on MLB. 3 plus years. And I just read about Mr. McCarthy’s appointment to the Company’s Board of Directors is effective immediately. Mr. McCarthy’s term will expire concurrently with the 2024 annual general meeting of the shareholders. Short leash.

I also see on the 5th they had a 8k on accelerated the vesting and settlement of outstanding restricted stock units for a few people. Not sure why that was.

Anyway, the stock is not holding up too well right now. Closed at 0.16 flat. Rsi is now in oversold. But money flow, ppo, pmo, macd show an increase of fall, just unhealthy.

Looking forward to the 10K and for that matter the next 10Q and whatever news maybe given.

Anyway, that’s enough for me right now.

[DarthYoda]

The company is currently valued around ~$26mil mkt cap(probably less tomorrow), but will pay a new $23mil fee to MLB over the next few years...after already paying $30mil(still paying) to MLB. IMO, the deal extension can only make sense if BAT(BTI) is gonna invest more money into CWBHF like they did with OGI...Will sales ever go back up though???...

On February 5, 2024, the Company and MLB entered into an amendment to the MLB Promotional Rights Agreement (the “Amendment”), whereby the term of the MLB Promotional Rights Agreement was extended through December 31, 2027, with an aggregate rights fee of $23 million for the remainder of the term.
MLB is the owner of 6,119,121 common shares of the Company which represents approximately 4% of the total outstanding common shares of the Company.

https://www.otcmarkets.com/filing/html?id=17241751&guid=omd-kKgy_Nd-B3h

[DarthYoda]

New 8-K..."On February 5, 2024, the Company and MLB entered into an amendment to the MLB Promotional Rights Agreement (the “Amendment”), whereby the term of the MLB Promotional Rights Agreement was extended through December 31, 2027, with an aggregate rights fee of $23 million for the remainder of the term.
MLB is the owner of 6,119,121 common shares of the Company which represents approximately 4% of the total outstanding common shares of the Company."
https://www.otcmarkets.com/filing/html?id=17241751&guid=omd-kKgy_Nd-B3h

[DarthYoda]

Here is that actual paper as well..."Minor, Nonterpenoid Volatile Compounds Drive the Aroma Differences of Exotic Cannabis":
October 12, 2023

Abstract
Cannabis sativa L. produces a wide variety of volatile secondary metabolites that contribute to its unique aroma. The major volatile constituents include monoterpenes, sesquiterpenes, and their oxygenated derivates. In particular, the compounds ß-myrcene, D-(+)-limonene, ß-caryophyllene, and terpinolene are often found in greatest amounts, which has led to their use in chemotaxonomic classification schemes and legal Cannabis sativa L. product labeling. While these compounds contribute to the characteristic aroma of Cannabis sativa L. and may help differentiate varieties on a broad level, their importance in producing specific aromas is not well understood. Here, we show that across Cannabis sativa L. varieties with divergent aromas, terpene expression remains remarkably similar, indicating their benign contribution to these unique, specific scents. Instead, we found that many minor, nonterpenoid compounds correlate strongly with nonprototypical sweet or savory aromas produced by Cannabis sativa L. Coupling sensory studies to our chemical analysis, we derive correlations between groups of compounds, or in some cases, individual compounds, that produce many of these diverse scents. In particular, we identified a new class of volatile sulfur compounds (VSCs) containing the 3-mercaptohexyl functional group responsible for the distinct citrus aromas in certain varieties and skatole (3-methylindole) as the key source of the chemical aroma in others. Our results provide not only a rich understanding of the chemistry of Cannabis sativa L. but also highlight how the importance of terpenes in the context of the aroma of Cannabis sativa L. has been overemphasized.

https://pubs.acs.org/doi/10.1021/acsomega.3c04496

[DarthYoda]

Worth reading...This related news from October could have some far reaching implications for the future of cannabis...
"Researchers Identify ‘Previously Undiscovered Cannabis Compounds’ That Give Marijuana Strains Their Unique Aromas":
October 24, 2023
https://www.marijuanamoment.net/researchers-identify-previously-undiscovered-cannabis-compounds-that-give-marijuana-strains-their-unique-aromas/

[DarthYoda]

Here is the actual paper..."The Neurotherapeutic Arsenal in Cannabis sativa: Insights into Anti-Neuroinflammatory and Neuroprotective Activity and Potential Entourage Effects":
15 January 2024
https://www.mdpi.com/1420-3049/29/2/410

[DarthYoda]

"New Study Shows How Marijuana Compounds Like Cannabinoids, Terpenes And Flavonoids Interact For Medical Benefits":
February 7, 2024
https://www.marijuanamoment.net/new-study-shows-how-marijuana-compounds-like-cannabinoids-terpenes-and-flavonoids-interact-for-medical-benefits/

[Wolf-man jack]

ITSY ITSY BITSY Spider 🕷️ Web HAIRLINE NEWS

https://finance.yahoo.com/news/charlottes-holdings-inc-announces-appointment-134500749.html

[DarthYoda]

The acquisition option value was down to $2.3mil as an asset in most recent 10-Q, which is probably from downsizing to two states. Colorado and Florida are two good states though. California and Oregon have been a mess. Maybe Florida going recreational will add value...

The SBH Purchase Option was purchased for total consideration of $8,000 and has a term of five years (extendable for an additional two years upon payment of additional consideration). The SBH Purchase Option provides the Company the option to acquire all or substantially all the shares of Stanley Brothers USA on the earlier of February 26, 2025 and federal legalization of cannabis in the United States, or such earlier time as Stanley Brothers USA and the Company agree, at a purchase price to be determined at the time of exercise of the SBH Purchase Option. Upon exercise of the SBH Purchase Option, the purchase price will be determined based on application of predetermined multiples of Stanley Brothers USA revenue and earnings before interest, taxes, depreciation, and amortization ("EBITDA") measures. The Company is not obligated to exercise the SBH Purchase Option. As part of the SBH Purchase Option agreement, Stanley Brothers USA issued the Company a warrant exercisable to purchase 10% of the outstanding Stanley Brothers USA shares and convertible securities that are considered in-the-money, subject to certain conditions and exclusions. The warrant is exercisable at the Company's election for a nominal exercise price in the event the Company elects not to acquire all or substantially all shares of Stanley Brothers USA and expires 60 days after the expiration of the option.
The Company has elected the fair value option in accordance with ASC 825-10 guidance to record its SBH Purchase Option. Under ASC 825-10, a business entity shall report unrealized gains and losses on items for which the fair value option has been elected in earnings at each subsequent reporting date. The SBH Purchase Option is classified as a financial asset and is remeasured at fair value at each reporting date, with changes to fair value recognized in the statements of operations for the period. The use of assumptions for the fair value determination includes a high degree of subjectivity and judgment using unobservable inputs (level 3 on the fair value hierarchy), which results in estimation uncertainty. Changes in assumptions that reasonably could have been different at the reporting date may result in a higher or lower determination of fair value. Changes in fair value measurements, if significant, may affect the performance of cash flows. For the three months ended September 30, 2023 and 2022, a gain of $275 and a loss of $4,000, respectively, related to the SBH Purchase Option was recognized as change in fair value of financial instruments in the statements of operations. For the nine months ended September 30, 2023 and 2022, a gain of $32 and a loss of $3,900, respectively, related to the SBH Purchase Option was recognized as change in fair value of financial instruments in the statements of operations. As of September 30, 2023 and December 31, 2022, the SBH Purchase Option represents a financial asset of $2,332 and $2,300, respectively, within SBH purchase option and other derivative assets in the condensed consolidated balance sheets.
The Monte Carlo valuation model considers multiple revenue and Earnings Before Interest Taxes Depreciation and Amortization ("EBITDA") outcomes for Stanley Brothers USA and other probabilities in assigning a fair value. Primary assumptions utilized include financial projections of Stanley Brothers USA and the probability and timing of exercise.

https://www.otcmarkets.com/filing/html?id=17042821&guid=lAd-kpF5cwRSJth

[DarthYoda]

Nine form 4's filed yesterday...
https://www.otcmarkets.com/stock/CWBHF/disclosure

[DarthYoda]

Stanley Bros still sell marijuana in Florida and Colorado. I haven't looked back at what the value of the Stanley Bros acquisition option is valued at now, but with Florida having recreational use possibly around the corner, that could add some value. You know anything worth sharing about the Stanley Bros acquisition option?...I did have to switch stores and then filter by Brand to pull up all the Stanley Bros products for sale through VidaCann, but they are there...
https://www.vidacann.com/brands/
https://www.vidacann.com/order-online/?pin=14
https://www.stanleybrotherscannabis.com/where-to-buy

[DarthYoda]

https://hempsupporter.com/wp-content/uploads/2024/01/Hemp-Industry-Hearing-Letter-EC-1.pdf

[DarthYoda]

CBD strengthens gut walls..."Cannabidiol Strengthening of Gastric Tight Junction Complexes Analyzed in an Improved Xenopus Oocyte Assay":
8 January 2024

Whereas CBD did not affect the size of the protein interaction area, Double Orbital Challenge experiments revealed an increased contact strength after 24 h incubation with CBD. In addition, the Xenopus oocyte experiments were accompanied by an analysis of claudin-4, -5, and -18 expression in gastric epithelium by immunoblotting and immunohistochemistry. Claudin-4, -5, and -18 were strongly expressed, indicating a major role for gastric epithelial barrier function. In summary, our study shows direct effects of 40 µM CBD on Xenopus oocytes heterologously expressing a stomach-specific claudin combination, indicating a supportive and beneficial effect of CBD on gastric TJ proteins.

https://www.mdpi.com/2077-0375/14/1/18

[DarthYoda]

"The NLRP3 inflammasome: a vital player in inflammation and mediating the anti-inflammatory effect of CBD":
08 January 2024

Abstract
Background
The NLRP3 inflammasome is a vital player in the emergence of inflammation. The priming and activation of the NLRP3 inflammasome is a major trigger for inflammation which is a defense response against adverse stimuli. However, the excessive activation of the NLRP3 inflammasome can lead to the development of various inflammatory diseases. Cannabidiol, as the second-most abundant component in cannabis, has a variety of pharmacological properties, particularly anti-inflammation. Unlike tetrahydrocannabinol, cannabidiol has a lower affinity for cannabinoid receptors, which may be the reason why it is not psychoactive. Notably, the mechanism by which cannabidiol exerts its anti-inflammatory effect is still unclear.

Methods
We have performed a literature review based on published original and review articles encompassing the NLRP3 inflammasome and cannabidiol in inflammation from central databases, including PubMed and Web of Science.

Results and conclusions
In this review, we first summarize the composition and activation process of the NLRP3 inflammasome. Then, we list possible molecular mechanisms of action of cannabidiol. Next, we explain the role of the NLRP3 inflammasome and the anti-inflammatory effect of cannabidiol in inflammatory disorders. Finally, we emphasize the capacity of cannabidiol to suppress inflammation by blocking the NLRP3 signaling pathway, which indicates that cannabidiol is a quite promising anti-inflammatory compound.

https://link.springer.com/article/10.1007/s00011-023-01831-y

[DarthYoda]

Interesting...Cannabinoid Crystal Polymorphism may provide some new or enhanced functionality...although I can't see the new paper detailing the recent discovery of "Cannabidiol Form 2"...so I also included an older paper below to provide the prediction and more details...

"Prediction and Discovery of Cannabidiol Crystal Polymorph Form 2":
10 Jan 2024
https://www.liebertpub.com/doi/full/10.1089/can.2023.0215

"Cannabinoid crystal polymorphism":
2022 Apr 17

Importantly, the discovery of cannabinoid crystal polymorphs would clearly be of more than mere academic interest. The very real possibility exists that such cannabinoid crystal polymorphs might possess greater stability or possibly improved bioavailability properties. It has been stated that “probably every organic medicinal can exist in different polymorphs.” Also, in his recent X-ray crystal determination of THCA-A, internationally recognized Brandeis crystallographer Bruce Foxman speculated that this X-ray study with its important information about intermolecular cannabinoid hydrogen bonding would facilitate “the search for polymorphs”.
Based on the foregoing evidence, it is reasonable to conclude that at least some Cannabis cannabinoids will also exhibit crystal polymorphism.

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9013448/

[DarthYoda]

CBD+Terps vs Cold and Flu..."Terpenes and cannabidiol against human corona and influenza viruses–Anti-inflammatory and antiviral in vitro evaluation":
17 January 2024

Highlights
-Terpenes and cannabidiol (CBD) exhibit anti-inflammatory and antiviral effects against human coronavirus (HCoV) and influenza a (H1N1).

-The combination of terpenes was effective against both HCoV-OC43 and influenza A (H1N1) virus, with the addition of CBD improving antiviral activity in some cases.

-The anti-inflammatory properties of terpenes were demonstrated through significant cytokine inhibition, which was further enhanced by the addition of CBD.

https://www.sciencedirect.com/science/article/pii/S2215017X2400002X

[DarthYoda]

CBD kills TB..."Antimicrobial Effect of Cannabidiol on Intracellular Mycobacterium tuberculosis":
22 Jan 2024

Abstract
Introduction:Mycobacterium tuberculosis, the etiologic agent of tuberculosis (TB), has killed nearly one billion people during the last two centuries. Nowadays, TB remains a major global health problem ranked among the top 10 causes of death worldwide. One of the main challenges in developing new strategies to fight TB is focused on reducing the duration and complexity of drug regimens. Cannabidiol (CBD) is the main nonpsychoactive ingredient extracted from the Cannabis sativa L. plant, which has been shown to be biologically active against bacteria. The purpose of this work was to investigate the antimicrobial effect of CBD on M. tuberculosis intracellular infection.

Materials and Methods: To assess the minimum inhibitory concentration (MIC) of CBD on mycobacterial strains, the MTT assay was performed on Mycobacterium smegmatis, and the Colony-Forming Unit (CFU) assay was conducted on MtbH37Rv. Additionally, the cytotoxic effect of CBD on THP-1 cells was assessed by MTT assay. Moreover, macrophages derived from the THP-1 cell were infected with MtbH37Rv (multiplicity of infection 1:10) to evaluate the intracellular activity of CBD by determining the CFU/mL.

Results: Antimicrobial activity against M. smegmatis (MIC=100?µM) and MtbH37Rv (MIC=25?µM) cultures was exhibited by CBD. Furthermore, the effect of CBD was also evaluated on MtbH37Rv infected macrophage cells. Interestingly, a reduction in viable intracellular MtbH37Rv bacteria was observed after 24?h of treatment. Moreover, CBD exhibited a safe profile toward human THP-1 cells, since it showed no toxicity (CC50=1075?µM) at a concentration of antibacterial effect (selectivity index 43).

Conclusion: These results extend the knowledge regarding the antimicrobial activity of CBD and demonstrate its ability to kill the human intracellular pathogen M. tuberculosis.

https://www.liebertpub.com/doi/abs/10.1089/can.2023.0124

[DarthYoda]

Same here and agreed.

[Fangster]

Initially, I liked her but came to see she’s not CEO material. She had good consumer products experience but would have been better working at a level or two below the CEO.

Water under the bridge!

[DarthYoda]

If I remember correctly, CW gave Deanie something like $5mil to be CEO and she couldn't even be bothered to move from Chicago to Colorado. Maybe I'm wrong about that, but either way she did buy a new place in Arizona after she stepped down from CW. She and Perry(they/them) were both ridiculous and should have to pay us back.

[DarthYoda]

We'll just call the B Corp an Oath lol. Agreed about Deanie. The revs barely saw an impact after acquiring ABAHF for ~$60mil. Looked great on the front end but Perry Antelman of ABAHF/Aidance got away with murder on that deal. I saw he's selling some kind of functional shroom supplements now too.

[Fangster]

B Corp designation corp gives credibility to social behavior, etc. not a bad thing per se. however, I haven’t seen the benefit attributed to the designation at this point.

[Fangster]

Actually, a large % of the increase is due to the useless transaction of acquiring CB Medic or whatever the name. Deanie paid the price for this move and so did the shareholders.

[DarthYoda]

Do you think being a "B Corp" makes CW any more trustworthy than typical OTC stocks?...An OTC B Corp could be said to be an oxymoron:)
Maybe it does offer us some additional degree of risk mitigation though?...I haven't really looked into that enough...

In business, a B Corporation (also B Corp) is a for-profit corporation certified by B Lab for its social impact. B Corp certification is conferred by B Lab, a global nonprofit organization. To be granted and to maintain certification, companies must receive a minimum score of 80 from an assessment of its social and environmental performance, integrate B Corp commitments to stakeholders into company governing documents, and pay an annual fee based on annual sales. Companies must re-certify every three years to retain B Corporation status.
As of August 2023, there are 7,351 certified B Corporations across 161 industries in 92 countries.

https://en.wikipedia.org/wiki/B_Corporation_(certification)
https://www.bcorporation.net/en-us/

[DarthYoda]

I think that's what the company meant when they mentioned something about the mitigation of CW shareholder risk(cost) by doing the AJA001 trials and development through Ajna. Maybe if/when Ajna has raised enough capital and gotten far enough in some trials, then going public through CW might make more sense at that time. You know they really have done pretty well at keeping the number of Shares Outstanding within reason. Since the IPO in 2018, the OS has only increased by 50%. That's very good for any OTC stock. The Float is still around 130mil. If the upcoming Farm Bill goes well, and dollar volume picks up, the stock price should be able to move up pretty easily. Lots of shares stacked on the ask lately though...
https://www.otcmarkets.com/stock/CWBHF/security

[Fangster]

I was thinking as well that a quick path to going public would be a merger into CW. However, IMO AJNA still needs to raise capital to move projects forward and CW doesn’t have the balance sheet to absorb the development costs at this time.

Nonetheless, interesting consideration!

[DarthYoda]

Well said and agreed!

[Fangster]

Yes, please spare us lessons in alphabet reorgs in IRC Sec 368. We’ve seen enough of that from another :))))

IMO based off what I read along with direct communication with ANJA, may go public if they get the implied valuation they want later on which is a Big if at this time. Seems to me they’re content raising funds privately at this point. We’ll see!

[DarthYoda]

If so, that's too bad. I sent their IR an email a long time ago asking them to take advantage of being in Colorado with the new psychedelic laws. This was well before we ever heard anything about Ajna. I'm pretty sure I gave them the idea lol. Maybe if Ajna ever goes public, it can do so through CWBHF. I wont hold my breath, but that should be a possibility. Don't worry, I wont start posting links to all the different kinds of possible triangular reverse mergers on investopedia and all that lol.

[Fangster]

This assumes CW hasn’t directly participated in the ANJA seed funding. I have not seen anything indicating this has occurred.