Charlotte's Web Holdings, Inc. · TSX:CWEB
Charlotte's Web — Investor Presentation (May 2023)
25 slides from Charlotte's Web's investor presentation, May 2023
Slide 1: May 2023 Investor Presentation
May 2023 TSX: CWEB | OTCQX: CWBHF Charlotte’s Web, Inc. 1
Slide 2: Disclaimers
DISCLAIMERS Forward-Looking Information Certain statements contained in this presentation constitute forward-looking statements and forward-looking information (collectively, “forward-looking statements”). Such forward-looking statements relate to possible events, conditions or financial performance
Slide 3: Charlotte's Web was started as a mission
C H A R LOT T E ’ S W E B WA S N OT S TA R T E D A S A C O M PA N Y, I T WA S S TA R T E D A S A M I S S I O N , A N D L AU N C H E D T H E C B D C AT EG O RY. What began as her story, became the shared story of thousands, and the inspiration of millions in the journey of betterment. Charlotte remai
Slide 4: Full & Broad Spectrum Hemp Extract Products
Full & Broad Spectrum Hemp Extract Products Nature in a bottle: plant intelligence for today and tomorrow’s wellness consumer Coming Soon! Comin g Soon! Charlotte’s Web, Inc. 4
Slide 5: Competitive Differentiation
Competitive Differentiation 10 Years in the Making, Prepared for the Future • • 1. Vertical • Integration • • • 2. Science & • 4 1 Safety • • • 3 2 3. Production • Capacity • • 4. #1 Products & • Market Share • • Charlotte’s Web, Inc. 5
Slide 6: Substantial Market Upside: #1 in a Fragmented Market
Charlotte’s Web #1 in SUBSTANTIAL a Fragmented Market MARKET UPSIDE CW holds 6% of share in segments it participates in; 3% of total market $3bn market share available Enormous room for market share gains through its products capitalization, regulation and competitor reduction $4.4B Aggregate US CBD
Slide 7: Charlotte's Web is #1 in Purchase Consideration
Purchase Consideration Charlotte's Web is #1 in purchase consideration 7
Slide 8: CW has #1 share in ecommerce channel
CW has #1 share -4%- in ecommerce channel Charlotte’s Web, Inc. 8
Slide 9: 2022: Addressed Liquidity
Quarterly Revenue 2022: addressed liquidity & Operating Expenses • 21.4* 20.4 19.4 18.9 18.9 17.5** 17.317.0 17.0. • 15.1 • • • Q1 Q2 Q3 Q4 Q1 '23 Charlotte’s Web, Inc. 9
Slide 10: 3-Pillar Strategy
3-Pillar STRATEGY Our mission is “to unlock the healing power of botanicals with compassion and science benefiting the planet and all who live upon it” 1 2 3 Charlotte’s Web, Inc. 10
Slide 11: Accessing scale and new retail verticals
Accessing scale and new retail verticals.... • • • • • Charlotte’s Web, Inc. 11
Slide 12: ECommerce: Targeting New Customers
ECommerce: Targeting New Customers 1 2 3 4 5 6 Charlotte’s Web, Inc. 12
Slide 13: Charlotte's Web, Inc.
THE.GAME Is PLAYED IN MY MIND. MY MENTAL AND PHYSICAL HEALTH ARE ONE IN THE SAME. =e ReCreate ©
Slide 14: ReCreate Phase One: Sport & Fitness
Major League Baseball trademarks and copyrights are used with permission of Major League Baseball. Visit MLB.com. ©/™ 2022 MLB RECREATE™ PHASE ONE: SPORT & FITNESS HUGE POTENTIAL UPSIDE AMONG YOUNGER CBD CONSUMERS WITH RECREATE™ REACT REFUEL RESET GET IN THE GAME STAY IN THE GAME CHANGE THE GAME Cha
Slide 15: Charlotte’s Web, Inc.
Charlotte’s Web, Inc. 15
Slide 16: Regulatory Progress Toward NDI
Regulatory Progress Toward NDI New Dietary Ingredient (Dietary Supplement Category) Charlotte’s Web, Inc. 16
Slide 17: Botanical Drug Pathway Toward IND
Botanical Drug Pathway Toward IND Pharmaceutical Investigative New Drug (IND) through FDA • • • • • • • • Charlotte’s Web, Inc. 17
Slide 18: Joint Venture with BAT and AJNA BioSciences
| Charlotte's Web forms Joint Venture with BAT and AJNA BioSciences to Seek FDA-Approval for Proprietary Full Spectrum Hemp Extract Botanical Drug CHARLOTTE’S WEB BAT acquires 20% stake for US$10 million, with Charlotte's Web and AJNA each owning 40% Renowned neurologist Dr. Orrin Devinsky, Chief Me
Slide 19: Formation of Defloria LLC
FORMATION OF “DEFLORIA llc” PARTNERING TO PURSUE BOTANICAL DRUG THROUGH FDA BAT 20% CW 40% AJNA 40% 4 Charlotte’s Web, Inc. 19
Slide 20: Leadership team to execute
Leadership team to execute Jacques Tortoroli Jared Stanley COO Jessica Saxton CEO CFO Former President of Bacardi Co-founder of Charlotte’s Web. Former General Motors and International. Joined Charlotte’s Has led plant sciences, breeding, Anheuser-Bush InBev executive with Web Board of Directors Nov
Slide 21: Positioned to deliver long term shareholder value
• POSITIONED • To deliver long term • shareholder value • • • Low valuation relative to long-term potential • Charlotte’s Web, Inc. 21 * MLB 6.1M shares (4%) shareholder, BAT proforma 19.9% shareholder post conversion @C$2.00 Nov 2029
Slide 22: Charlotte's Web, Inc. - Information
Charlotte’s Charlotte’sWeb, Web,Inc. Inc. - Confidential Information 22
Slide 23: Charlotte's Web, Inc.
CHARLOTTE’S WEB’ STANLEY BROTHERS TSX:CWEB | OTCQX:CWBHF Charlotte’s Web Holdings, Inc. 700 Tech Court Louisville, Colorado USA www.charlottesweb.com Cory Pala Director of Investor Relations (720) 484-8930 IR@CharlottesWeb.com 23
Slide 24: Capitalization
CAPITALIZATION CAPITALIZATION March 31, 2023 Basic Common Shares Outstanding Restricted Share Units Options Fully Diluted Shares 162.7 Outstanding 24 Charlotte’s Web, Inc. 24
Slide 25: Recapitalized: $56.8M Strategic Investment from BAT
RECAPITALIZED $56.8M Strategic Investment from BAT Investment Highlights Capitalization + Ownership November 2022 Net Cash Position $67.0M ✓ ✓ Dec 31, 2022 5.0% - 1.5% ✓ Annualized Cost 2 stepping down upon federal legalization 2 1 ✓ ~19.9% 3 BAT Ownership upon conversion 1. Interest to be settled i
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