Charlotte's Web Provides Update on Diverging Hemp Policies: Federal Momentum Builds as California Restricts Therapeutic Hemp Product Access

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

California takes a pre-2018 Farm Bill approach that restricts access, even as federal momentum builds to protect access to therapeutic hemp products relied on by families. Louisville, Colorado--(Newsfile Corp. - June 26, 2026) - Charlotte's Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) ("Charlotte's Web" or the "Company"), a botanical wellness innovation company and a market leader in hemp wellness, today provided an update on developments pulling federal and state hemp policy in opposite directions. California restriction effective July 1, 2026 New California requirements under SB 378 and related state regulations will significantly restrict the sale and distribution of ingestible full-spectrum and broad-spectrum hemp-derived products to consumers in the state. California's approach will be among the most restrictive in the nation, specifically limiting direct-to-consumer and online sales, whereas most other states have primarily focused on retail channels. As a result, beginning July 1, Charlotte's Web must cease direct shipments of affected products to California consumers. "This bill is a tragedy for many California families who have come to rely on these products to live fuller lives," said Bill Morachnick, Chief Executive Officer of Charlotte's Web. "We hear every day from parents, veterans, and individuals who have found meaningful support in therapeutic hemp products and the thought of losing access is deeply personal to them, and to us. Without thoughtful alternative access, this becomes a public health crisis in the making; one that risks taking away safe, trusted options that so many people depend on. Our purpose has always been rooted in helping people thrive, and we will continue to stand with Californians, working tirelessly to ensure their voices are heard and their needs are not overlooked." Certain product categories are expected to remain available, including topical products that meet the established 0.3% THC dry-weight definition of hemp, as well as cannabinoid isolates and mushroom-based products, subject to final regulatory confirmation. The Company remains focused first on supporting its California customers, many of whom rely on these products as part of their health. Charlotte's Web has maintained a longstanding presence in California and has consistently advocated and lobbied alongside families at the state capitol and will ...

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