Charlotte’s Web Holdings said it secured a $56.8 million investment from a British American Tobacco subsidiary, a deal that gives the multinational tobacco giant a 19.9% stake in the Colorado-based CBD and hemp company.
Charlotte’s Web said in a news release the investment was made in the form of a convertible debenture that is convertible at BAT’s discretion.
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Charlotte’s Web also noted it will have pro-forma cash and short-term investments of about $65 million once the deal closes.
“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,” Charlotte’s Web CEO Jacques Tortoroli said in a statement.
Kingsley Wheaton, chief growth officer at BAT, said in a statement that Charlotte’s Web had “strong brand equity, an extensive retail presence
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