Charlotte's Web Holdings Inc (CWBHF)

[DarthYoda]

2019 12-Month Financial Highlights
-Organic revenue growth of 36% year-over-year to $94.6 million
-DTC eCommerce sales grew 39% contributing 57% of 2019 revenue
-Gross profit (before biological asset adjustments and increases in inventory provision) of $65.9 million was 70% of consolidated revenue
-Commenced investments into management and infrastructure to expand production, extraction and distribution capacity
-Adjusted EBITDA loss of $1.7 million
-Non-cash inventory reserve of $15.5M
-$68.6 million cash and $116.9 million working capital at December 31, 2019

2019 Fourth Quarter Financial Highlights
-Organic revenue growth of 6.0% year-over-year to $22.8 million
-DTC eCommerce sales grew 14%, contributing 65% of fourth quarter revenue
-Gross profit (before biological asset adjustment and inventory provision) of $12.2M was 54% of consolidated revenue
-Adjusted EBITDA loss of $10.2 million
-Fourth quarter $13.9M inventory provision against delay of anticipated adoption of ingestible products by F/D/M channel
-Completed $49.8 million (C$66.3M) financing December 2019

2019 Business Highlights
-Developed consumer-packaged good ("CPG") CPG leadership team and commenced capacity expansion for production, distribution, and R&D ahead of anticipated mass retail channel growth
-Jacques Tortoroli joined the Company's Board of Directors. Mr. Tortoroli is former Chief Administration Officer of Bacardi Limited in Bermuda, the largest privately held spirits company in the world
-Surpassed 10,000 retail doors selling Charlotte's Web products
-Increased retail breadth and product depth with new product introductions including 24 new pet product SKUs
-Record 2019 hemp harvest; 245% increase to 2.34 million lbs biomass, 22% potency increase, 10% yield increase/acre Estimated 36,000 kg CBD with 33% reduced cost/kg, and 52% acres earning organic certification
-Executed actions to support regulatory progress at the federal and state levels
-Integrated financial systems, controls and corporate governance in pursuit of an eventual cross-listing on a major U.S. stock exchange

Highlights Subsequent to December 31, 2019
-Acquisition of Abacus Health, solidifying Charlotte's Web leadership in -CBD topical and ingestible product segments
-Launched CW Labs R&D Sciences Division, part of SUNY network of 64 universities and medical centres
-Self-affirmed GRAS status achieved for full spectrum hemp extract
-NASC certification received for Charlotte's Web pet products
-Added to NSF International's dietary supplements Good Manufacturing Practice (GMP) registration
-J.P. Morgan engaged for commercial banking services and $10 million line of credit (extendable to $20M)

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