11.16.22
Charlotte's Web Holdings, Inc. (CW) announced a $56.8 million investment from a subsidiary of British American Tobacco plc (BAT), providing CW with “incremental capital to fund growth initiatives,” including an expanding portfolio of botanical wellness products.
BAT's investment has been made via a convertible debenture in the amount of $56.8 million. At BAT's discretion, the debenture is currently convertible into a non-controlling equity stake in CW of approximately 19.9%.
"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,” said Jacques Tortoroli, CEO of Charlotte's Web.
For BAT, the appeal of Charlotte's Web is “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,” according to Kingsley Wheaton, chief growth officer at BAT.
Upon closing of this investment, Charlotte's Web will have pro-forma cash and short-term investments of approximately $65 million.
Concurrently with entering into the debenture, the companies have entered into an investor rights agreement (IRA) that provides BAT with the right to nominate 20% of the members of the company's board of directors so long as BAT and its affiliates' partially diluted ownership of the company's common shares is at least 15%.
BAT's investment has been made via a convertible debenture in the amount of $56.8 million. At BAT's discretion, the debenture is currently convertible into a non-controlling equity stake in CW of approximately 19.9%.
"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,” said Jacques Tortoroli, CEO of Charlotte's Web.
For BAT, the appeal of Charlotte's Web is “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,” according to Kingsley Wheaton, chief growth officer at BAT.
Upon closing of this investment, Charlotte's Web will have pro-forma cash and short-term investments of approximately $65 million.
Concurrently with entering into the debenture, the companies have entered into an investor rights agreement (IRA) that provides BAT with the right to nominate 20% of the members of the company's board of directors so long as BAT and its affiliates' partially diluted ownership of the company's common shares is at least 15%.
