Charlotte’s Web eyes marijuana market

BOULDER — Charlotte’s Web Holdings Inc. (OTCQX: CWBHF), a CBD product maker, is poised to enter the marijuana market as the company positions itself to acquire a manufacturer of THC-infused products.

The firm has inked a five-year, $8-million purchase agreement option with Stanley Brothers USA Holdings Inc. that allows CW to take over Stanley Brothers after certain “triggering events” such as the federal legalization of cannabis in the United States for a total price to be determined based upon revenue and EBITDA figures.

“Consumer attitudes, market trends, and laws surrounding cannabis and its role within the wellness category continue to trend positively. This strategic option provides Charlotte’s Web optionality to enter the U.S. cannabis wellness market in partnership with an experienced and trusted team and brand, positioning our business for potential new growth opportunities and shareholder value creation,” CW CEO Deanie Elsner said in a prepared statement. “The Stanley Brothers are innovating cannabis wellness with the same philosophy and vision that drove their success as founders of the Charlotte’s Web brand. With this shared heritage, we could not be more aligned.”

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Stanley Brothers founder Jared and Joel Stanley are members of CW’s board of directors and will step away from those positions to oversee the future acquisition, according to a company news release.

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