Charlotte’s Web Holdings has completed a two-part transaction with BT DE Investments, a subsidiary of British American Tobacco, that converts existing debt to equity and brings in fresh capital. The company first amended and converted in full the convertible debenture it had issued to BAT on November 14, 2022, which carried a principal of CAD75,341,080 (USD54.7 million). Together with CAD14,223,321 (USD10.3 million) in accrued interest, the total converted amount of CAD89,564,401 (USD65 million) was settled through the issuance of 95,281,277 common shares at a conversion price of CAD0.94 per share.
Concurrently, BAT subscribed to a non-brokered private placement of 14,662,765 additional common shares at the same CAD0.94 price, generating gross proceeds of USD10 million (CAD13.8 million). The company said the net cash will support its participation in the anticipated CMMI Medicare pilot program and other medical-channel initiatives, a pathway intended to let eligible Medicare beneficiaries access CBD products through physician consultation, subject to program requirements and regulatory approvals. The transaction remains subject to final approval from the Toronto Stock Exchange.
CEO Bill Morachnick framed the deal as a strengthening of the company’s balance sheet and capital position, describing increased financial flexibility and a streamlined capital structure that better positions Charlotte’s Web to execute its growth strategy and expand access. Charlotte’s Web, a Certified B Corporation headquartered in Louisville, Colorado, is a botanical wellness company focused on hemp extract products, including full-spectrum and broad-spectrum CBD as well as other cannabinoid offerings. Its shares trade on the TSX under “CWEB” and on the OTCQX under “CWBHF.”
