Colorado-based CBD company
announced on Tuesday that the company has secured a nearly $57 million investment from a subsidiary of British American Tobacco, an international multi-category consumer goods business with operations in 175 countries. Charlotte’s Web said that the investment will provide incremental capital to fund growth initiatives, including the company’s expanding portfolio of botanical wellness products.“This Investment will provide Charlotte’s Web with funding that we anticipate will help unlock deeper and broader research and development that is key to our continued innovation, global footprint, and the advancement of our intellectual property portfolio,” Jacques Tortoroli, CEO of Charlotte’s Web,
from the company.The investment from British American Tobacco (BAT) has been made via a convertible debenture in the amount of $56.8 million. The debenture is currently convertible into a non-controlling equity stake in Charlotte’s Web of approximately 19.9 percent and is convertible at the discretion of BAT. Upon closing of the investment, Charlotte’s Web will have pro-forma cash and short-term investments of approximately $65 million.
Tobacco Company Focused On New Alternatives To Cigarettes
BAT has pledged to reduce the health impact of its business by offering a greater choice of enjoyable and less risky products for adult consumers, making it “clear that combustible cigarettes pose serious health risks, and the only way to avoid these risks is not to start or to quit. BAT encourages those who would otherwise continue to smoke to switch completely to scientifically-substantiated, reduced-risk alternatives.”
BAT’s portfolio consists of its global cigarette brands and a growing range of new, reduced-risk tobacco and nicotine products, as well as traditional non-combustible tobacco products. The line includes vapor and tobacco heating products, modern oral products including tobacco-free nicotine pouches and traditional oral products such as snus and moist snuff. In the first half of 2022, the company had 20.4 million non-combustible products consumers, an increase of 2.1 million over 2021.
“The appeal of Charlotte’s Web is clear to us: a wide portfolio of high-quality products, strong brand equity, an extensive retail presence and robust B2C e-commerce platform serving a loyal US consumer base, and a track record of in-depth scientific research,” said Kingsley Wheaton, chief growth officer at BAT.
Charlotte’s Web: Official CBD of Major League Baseball
Denver-based Charlotte’s Web was founded by the seven Stanley brothers, who built their business with a mission to provide safe, botanical health and wellness products to consumers around the globe. The company’s products start with proprietary hemp genetics that are grown on U.S. farms using organic and regenerative cultivation practices. Charlotte’s Web hemp extracts have naturally occurring botanical compounds including cannabidiol (CBD), cannabichromene (CBC), cannabigerol (CBG), terpenes, flavonoids and other beneficial compounds.
Last month, Charlotte’s Web announced it had
to make the make the company the official CBD of Major League Baseball, making the organization the first major professional sports league to have a sponsorship agreement with a CBD company.“As a leader in the CBD category, with products that provide health and wellness benefits, Charlotte’s Web is a welcome addition to the MLB family, representing a landmark partnership in baseball and sports,” said Noah Garden, MLB chief revenue officer. “Charlotte’s Web products which receive the NSF Certified for Sport designation have met the highest safety standards and can be promoted across MLB events and media platforms. We are excited about the possibilities this partnership offers as CBD becomes a more widely adopted part of the health and wellness regimen of our players and fans.”
The league said that both MLB and Charlotte’s Web “share a purpose-focused mission and a passion for supporting their communities,” and have committed to serving as corporate social responsibility partners and advancing causes that promote quality of life for athletes and fans.
“Nature is the most intelligent and advanced technology system in our world, and when we work with nature for health and innovate through the lens of community care, we can truly redefine what it means to be well as an athlete,” Jared Stanley, co-founder and COO of Charlotte’s Web,
. “This is game-changing, and I am excited by what we can accomplish with the MLB partnership.”The investment from BAT continues a string of high-profile deals inked by Charlotte’s Web. This month, the company signed a distribution deal with Stark Foods International, an importer and distributor of European specialty foods and beauty products. And in September, Charlotte’s Web signed a distribution agreement with Southern Glazer’s Wine & Spirits, the largest wine and spirits distributor in the United States.