Charlotte's Web Holdings Inc (CWBHF)

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Thank you for your interest in Charlotte’s Web. Yes, you are correct, as part of its multi-channel evaluation for expanded distribution and reach, Charlotte’s Web is exploring a direct seller program with supplement manufacturer Plexus. This is for a Plexus-branded product containing Charlotte’s Web hemp-extract. This is different than the Charlotte’s Web branded products you will find on our online store or at a retailer. Specifically, Plexus will be piloting an exclusive 30ml bottle of Blueberry Lavender flavored hemp extract oil containing 17mg/ml plant-based cannabinoids. This exclusive flavor has the Plexus customer in mind, and we are keen to see what kind of traction ensues. The innovative pilot program provides access to a customer demographic that would otherwise not be exposed to our digital or traditional advertising media. More importantly, the structure of the Plexus direct-selling organization offers consumer education moments not easily available through traditional retail channels. Direct consumer-to-consumer selling harnesses the power of word-of-mouth exposure – by far the most effective tool in an industry that is limited in its formal advertising – by contracting affiliates or brand ambassadors to communicate consumer-to-consumer. We believe the uniquely high consumer touch model through Plexus enables consistent exposure and education surrounding the health benefits from full-spectrum extracts and cannabinoids, an ongoing effort Charlotte’s Web has been at the forefront of since its inception. Because of this, direct C2C has already come to represent a large part of the overall CBD industry. Direct selling is big business and a meaningful distribution channel for CBD products. The Plexus organization has more than 700,000 members / product ambassadors generating more than $500M in annual sales. All members will be issued detailed documentation and mandatory training on the exclusive hemp extract and the overall CBD wellness category. This strategy reaches a vast pool of consumers by leveraging the benefits of word-of mouth marketing and at superior margins compared to the mass retail channel. This exploratory collaboration brings a quality CBD product into the C2C channel as Charlotte’s Web remains as committed as ever to its high standards and consistency for which it is known and trusted.