BAT Group (BAT) has announced an investment in Charlotte’s Web Holdings, Inc. (Charlotte’s Web), a leading US producer of hemp extract wellness products.
Based in Colorado, US and listed on the Toronto Stock Exchange, Charlotte’s Web is the #1 US brand in innovative hemp extract wellness products, BAT said in a press release. Charlotte’s Web’s product formats include tinctures, capsules, chews and topicals.
BAT’s investment has been made via a convertible debenture in the amount of GBP 48.2 million (USD 56.7 million). The debenture is currently convertible into a non-controlling equity stake in Charlotte’s Web of approximately 19.9 per cent and is convertible at BAT’s discretion.
Kingsley Wheaton, Chief Growth Officer at BAT, said: “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. Our investment in Charlotte’s Web represents another step for BAT in our exploration beyond tobacco and nicotine, as we continue to build a strong foundation to deliver A Better Tomorrow.”
Jacques Tortoroli, CEO of Charlotte’s Web said: “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.”