DENVER, Jan. 12, 2022 /PRNewswire/ - (TSX: CWEB) (OTCQX:
CWBHF) Charlotte's Web Holdings, Inc. ("Charlotte's Web," "CW" or
the "Company"), the market leader and manufacturer of The World's
Most Trusted Hemp Extract™, has completed a reorganization to drive
agility and growth as the Company prepares to launch new products,
channels and markets, with intent to return to positive cash flow
in 2022. The changes follow the Company's new leadership
announcement issued on December 16,
2021.
"I'm pleased to share a corporate update on recent actions taken
to position the business for long-term growth and profitability,"
said Jacques Tortoroli, Chief
Executive Officer of Charlotte's Web. "Structurally, we've
flattened the organization to reengage the bold, entrepreneurial
culture that Charlotte's Web was founded upon. Strategically, we
are leveraging our intellectual property and brand leadership to
enter new product categories, markets and partnerships to drive our
topline growth. Financially, we have moved to reduce our costs and
tie compensation more to equity growth to better align with
shareholder interests and accelerate our return to positive cash
flow in 2022. We have ceased equity distributions through our
at-the-market equity program established last June. I am listening
to our investors and grateful for their continued support."
Reorganization
Charlotte's Web has transitioned to a
horizontal organizational structure to empower employees with
increased decision making and accountability. This enables more
efficient collaboration and creativity, driving faster response
times and better customer service. The simplified structure also
reduces costs and aligns employees more closely with business
goals.
Mission and culture
Charlotte's Web began as a
mission of compassion before it was a business, with seven brothers
helping a little girl in need – and subsequently helping thousands
of others that would follow. This was Charlotte's Web's
founding corporate culture and mission to improve health through
the healing powers of botanicals with compassion and science,
benefitting the planet and all who live upon it. The
reorganization marks a return to the founding principles of a
passionate, fast-moving entrepreneurial spirit.
"The Charlotte's Web origins story, leading brand recognition
and trust, are unique in the CBD category," said Jared Stanley, Chief Cultivation &
Innovation Officer. "From this foundation we have built
valuable thought leadership, science, and optionality into our
business, presenting substantial opportunities to be unlocked at
home and abroad. We are eager to lead this category with a
revitalized approach and renewed energy."
Revenue expansion
Charlotte's Web is a market share
leader in segments totalling approximately US$3B in sales in 2021 according to the
Brightfield Group. As the leading CBD brand, the Company aims to
continue incremental market share gains in 2022. On the regulatory
front, the passing of California Assembly Bill 45 in October of
2021 has opened new retail doors for Charlotte's Web within the
state as well as with new national retail partners. The mass retail
channel continues to await further regulatory progress at the
federal level with hearings on House of Representatives Bill 841
anticipated early this year. In the interim, topline growth
initiatives for 2022 will include a new focus on ecommerce consumer
experience, social media marketing strategies and expanding access
to hemp products to audiences who can most directly benefit from
them. New product launches are planned with innovative formulas,
formats, and categories. And new distribution partner discussions
are underway both domestically and internationally.
"We are accelerating our global opportunity in parallel with the
US market," added Wes Booysen, Chief
Financial & Operating Officer. "Our executive team has
substantial international experience, and we have started the year
with discussions underway in Canada, Israel, U.K. and the E.U. for asset-light
models through strategic partnerships."
About Charlotte's Web Holdings, Inc.
Charlotte's Web Holdings, Inc., a Certified B Corporation
headquartered in Denver, Colorado, is the market leader in innovative
hemp extract wellness products under a family of brands which
includes Charlotte's Web™, CBD Medic™, CBD Clinic™, and
Harmony Hemp™. Charlotte's Web branded premium quality
products start with proprietary hemp genetics that are 100-percent
American farm grown and manufactured into hemp
extracts containing naturally
occurring phytocannabinoids including cannabidiol
("CBD"), CBC, CBG, terpenes, flavonoids, and other
beneficial hemp compounds. The Company's CW Labs
R&D division, advances hemp science at two centers of
excellence in Louisville,
Colorado, and the Hauptmann Woodward Research Institute at
the University at Buffalo, part of the
State University of New York
(SUNY) network. Charlotte's Web product
categories include full spectrum hemp extract oil
tinctures (liquid products), gummies (sleep, stress,
immunity, exercise recovery), capsules, CBD topical creams and
lotions, as well as products for
dogs. Charlotte's Web products are distributed to more
than 14,000 retail doors and 8,000 health care practitioners, and
online through the Company's website
at www.CharlottesWeb.com.
Forward-Looking Information
Certain information in this news release constitutes
forward-looking statements and forward-looking information
(collectively, "forward-looking information"). In some cases, but
not necessarily in all cases, forward looking information can be
identified by the use of forward-looking terminology such as
"plans", "targets", "expects" or "does not expect", "is expected",
"an opportunity exists", "is positioned", "estimates", "intends",
"assumes", "anticipates" or "does not anticipate" or "believes", or
variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might", "will"
or "will be taken", "occur" or "be achieved". In addition, any
statements that refer to expectations, projections or other
characterizations of future events or circumstances contain
forward-looking information. Specifically, this news release
contains forward-looking information relating to the Company's
expansion activities and growth strategy; the Company's
expectations regarding future cash flow and its financial position;
the results of cost saving efforts; the impact and results of the
Company's reorganization; market share expectations; and impacts of
regulatory changes.
Statements containing forward-looking information are not
historical facts but instead represent management's current
expectations, estimates and projections regarding the future of
our business, future plans, strategies, projections, anticipated
events and trends, the economy and other future conditions.
Forward-looking information is necessarily based on a number of
opinions, assumptions and estimates that, while considered
reasonable by the Company as of the date of this news release, are
subject to known and unknown risks, uncertainties, assumptions and
other factors that may cause the actual results, level of activity,
performance or achievements to be materially different from those
expressed or implied by such forward-looking
information. Important factors that could cause actual
results and financial condition to differ materially from those
indicated in the forward-looking information include, among others,
the factors discussed throughout the "Risk Factors" section of the
Company's most recently filed annual information form available
on www.SEDAR.com and in the Company's most
recently filed Form 10, as amended, and other filings with the
Securities and Exchange Commission available on www.EDGAR.com.
Except as required by applicable securities laws, the Company
undertakes no obligation to publicly update any forward-looking
information, whether written or oral, that may be made from time to
time, whether as a result of new information, future developments
or otherwise.
Charlotte's Web Holdings, Inc.
THE WORLD'S MOST
TRUSTED HEMP EXTRACT™
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SOURCE Charlotte's Web Holdings, Inc.