Charlotte's Web First Quarter 2026 Financial Results

About this update from Charlotte's Web Holdings, Inc.

Charlotte's Web First Quarter 2026 Financial ResultsProposed Transaction Set to Transform Balance Sheet; BEI Healthcare Access Pathway Activated April 1ST; Adjusted EBITDA Continues to ImproveLouisville, Colorado--(Newsfile Corp. - May 13, 2026) - Charlotte's Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) ("Charlotte's Web" or the "Company"), a botanical wellness innovation company and the market leader in cannabidiol (CBD) hemp extract wellness products, today announced results for the quarter ended March 31, 2026. All amounts are expressed in U.S. dollars. TRANSACTION AND SUBSEQUENT EVENTS UPDATEProposed Transaction and $10M InvestmentDuring the first quarter of 2026, Charlotte's Web announced a transaction with BT DE Investments Inc. ("BAT"), a subsidiary of British American Tobacco p.l.c. (LSE: BATS and NYSE: BTI), to amend and convert BAT's outstanding convertible debenture of approximately $54 million, plus accrued interest, and complete a concurrent $10 million private placement.Upon completion, the transaction would eliminate Charlotte's Web's largest outstanding balance sheet liability, remove approximately $3 million in annual interest costs, strengthen shareholders' equity, and add $10 million in new capital to support the Company's participation in the developing CMS healthcare-access opportunity and other medical channel opportunities. Following completion of the transaction BAT would hold approximately 40% of the Company's then-issued and outstanding common shares on a non-diluted basis, representing a total equity commitment of approximately $75 million.Completion of the transaction is subject to TSX approval and is pending approval of Charlotte's Web shareholders at the Annual General and Special Meeting of shareholders scheduled to be held on May 28, 2026."Charlotte's Web exited the first quarter with the right elements in place to position us for future growth. With a significantly enhanced capital structure and balance sheet on the horizon, along with our first-class product-quality systems and rapidly emerging healthcare-channel infrastructure, we are well prepared to pursue the fast-evolving federally authorized CBD opportunities," said Bill Morachnick, Chief Executive Officer. "Following the April 1 activation of the CMS Substance Access Beneficiary Engagement Incentive , we are moving from preparation to deployment while co...

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