Charlotte's Web Holdings Inc (CWBHF)

[Gladys Thong]

Capital Investment: Growing A Company

From the most recent available (Q1 2020) Charlotte's Web Earnings Report:

The Company used $14.9 million of cash in operations during Q1-2020 . . . The reduction in cash flows primarily reflects the investment in construction of the Company's new 137,000 sq. ft. production and fulfillment centre to support anticipated growth.

Perhaps the concept of "CAPITAL INVESTMENT" is difficult to comprehend for a shareholder in a company such as CV Sciences (CVSI), with a rapidly declining revenue stream, when compared to Charlotte's Web (CWBHF).

 
              REVENUES 
       CVSI    CWBHF  CVSI/CWBHF 
        $M      $M 
  
 2018 
      
 Q2    12.3     17.2     72% 
 Q3    13.6     17.7     77% 
 Q4    14.2     21.5     66% 
  
 2019 
  
 Q1    14.9     21.7     69% 
 Q2    16.9     25.0     68% 
 Q3    12.6     25.1     50% 
 Q4     9.4     22.8     41% 
  
 2020 
  
 Q1     8.3     21.5     39% 
 Q2     5.4 <--- OUCH! 
 

I look forward to completing that Q2 2020 line. LOL.