CBD producer Charlotte’s Web plans marijuana entry with $8 million acquisition

(A version of this story first appeared at Hemp Industry Daily.)

Charlotte’s Web Holdings, a Colorado-based, hemp-derived CBD leader, said it signed a five-year purchase agreement option to acquire a marijuana company for $8 million.

The marijuana business was started by Charlotte Web’s founding company, Stanley Brothers USA Holdings.

The deal is structured so that Boulder-based Charlotte’s Web can take over the marijuana business once the drug is legalized nationally in the United States – or perhaps earlier, depending on the policies of the stock exchange where the company’s securities are listed.

At that time, a total price for the transaction will be determined based on a “weighted application of 3.5 times revenue and 13.5 times EBITDA multiples … or a base amount and earn-out, in certain circumstances,” according to a news release.

Charlotte’s Web is a high-CBD drug that has proved successful in treating seizures.

Stanley Brothers USA makes cannabis products whose THC levels are too high to qualify as legal hemp but are lower than many formulations in recreational marijuana markets.

The business operates in California, Colorado and Florida.

Stanley Brothers founders, Jared and Joel Stanley, sit on Charlotte’s Web board but plan to bow out of those duties to focus on the future acquisition.

Charlotte’s Web noted in a news release it entered the transaction after seeing encouraging signs that marijuana reform in the U.S. could soon in the near future.

Charlotte’s Web trades on the Toronto Stock Exchange under the ticker symbol CWEB.

Source link

Medical Disclaimer:

The information provided in these blog posts is intended for general informational and educational purposes only. It is not a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or other qualified healthcare provider with any questions you may have regarding a medical condition. The use of any information provided in these blog posts is solely at your own risk. The authors and the website do not recommend or endorse any specific products, treatments, or procedures mentioned. Reliance on any information in these blog posts is solely at your own discretion.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like