{"id":449317,"date":"2021-03-03T07:08:36","date_gmt":"2021-03-03T12:08:36","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=449317"},"modified":"2021-03-03T07:08:36","modified_gmt":"2021-03-03T12:08:36","slug":"charlottes-web-positions-to-enter-us-cannabis-wellness-market","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/charlottes-web-positions-to-enter-us-cannabis-wellness-market\/","title":{"rendered":"Charlotte’s Web Positions to Enter US Cannabis Wellness Market"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n Charlotte’s<\/span> Web secures Option to purchase Stanley Brothers’<\/span> cannabis business <\/i>\n <\/p>\n

\n BOULDER, Colo.<\/span>, March 3, 2021<\/span> \/PRNewswire\/ –\u00a0<\/b>Charlotte’s<\/span> Web Holdings, Inc. (“Charlotte<\/span><\/b>‘<\/b>s Web<\/b>“, “CW<\/b>” or the “Company<\/b>“) (TSX: CWEB) (OTCQX: CWBHF), the market leader in full-spectrum hemp CBD extract products<\/a>, announces that it has entered into an Option Purchase Agreement (the\u00a0“Option<\/b>“) with Stanley Brothers USA<\/span> Holdings, Inc. (“Stanley Brothers USA<\/span><\/b>“), a privately-held Delaware<\/span> company, and the shareholders of Stanley Brothers USA<\/span>. Stanley Brothers USA<\/span> is a cannabis wellness incubator currently operating in three states (Colorado<\/span>, California<\/span>, Florida<\/span>) with expansion plans underway in eight additional states. The Option has a five-year term (extendable for an additional two years) and provides Charlotte’s<\/span> Web the optionality to acquire Stanley Brothers USA<\/span> on the earlier of three\u00a0years from the effective date of the Option and\u00a0federal legalization of cannabis in the United States<\/span>, or such earlier time as Stanley Brothers USA<\/span> and Charlotte’s<\/span> Web may agree (the “Triggering Event<\/b>“) potentially including when otherwise permitted by the policies of the stock exchange on which the Company’s securities are listed for trading.\u00a0The common shares of Charlotte’s Web continue to trade on the TSX in Canada<\/span> and OTCQX in the US.<\/p>\n

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“Consumer attitudes, market trends, and laws surrounding cannabis and its role within the wellness category continue to trend positively. This\u00a0strategic Option provides Charlotte’s<\/span> Web optionality to enter the U.S. cannabis wellness market in partnership with an experienced and trusted team and brand, positioning our business for potential new growth opportunities and shareholder value creation,” explained Deanie Elsner<\/span>, CEO of Charlotte’s<\/span> Web. “The Stanley Brothers are innovating cannabis wellness with the same philosophy and vision that drove their success as founders of the Charlotte’s<\/span> Web brand. With this shared heritage, we could not be more aligned.”<\/p>\n

Stanley Brothers USA<\/span> is evolving botanical formulations for the Cannabis 2.0 wellness-focused consumer, combining full-spectrum cannabis extracts with functional botanical ingredients. Marketed under the “ReCreate” brand, the wellness formulations are lower in tetrahydrocannabinol (“THC<\/b>“) for more precisely controllable benefits. Products include functional chocolates, gummies and oil tinctures, formulated with the wellness benefits of the entire cannabis plant including CBD and THC to help achieve a desired state of wellbeing.<\/p>\n

\n Charlotte’s<\/span> Web is the global leader in the cultivation, production and distribution of hemp-derived CBD wellness products. Until the Option is exercised, both Charlotte’s<\/span> Web and Stanley Brothers USA<\/span> will continue to operate as standalone entities in the US. Internationally the companies are able to explore opportunities where cannabis is federally permissible.<\/p>\n

\n Related-Party Transaction<\/b>
\n \u00a0and Board Changes<\/b>\n <\/p>\n

Two founders of Stanley Brothers USA<\/span> are members of the Charlotte’s<\/span> Web board of directors. To further support the strategic Option, Charlotte’s<\/span> Web co-founders Joel Stanley<\/span> and Jared Stanley<\/span> resigned as members of the Charlotte’s<\/span> Web board of directors in order to transition to board positions with Stanley Brothers USA<\/span> and oversee execution of that business with aligned values, business practices, and vision. <\/p>\n