CHARLOTTES WEB HLDGS INC - CWBHF STOCK NEWS

Charlotte's Web Holdings, Inc. (CWBHF) reported Q3-2021 net revenue of $23.7 million, down 5.8% from $25.2 million in Q3-2020. Gummy sales rose to 30% of revenue, while tinctures dropped to 37%. Gross profit increased to $14.9 million, yielding a gross margin of 62.9%. Operating expenses decreased by 15.6%, and adjusted EBITDA improved to a loss of $2.8 million. The company improved its cash position to $21.1 million, with significant progress in business-to-business and direct-to-consumer revenue. Supply chain disruptions hindered overall revenue growth, though recovery is anticipated in Q4-2021.

Charlotte's Web Holdings announced the successful completion of its first international hemp harvest in Canada, using its proprietary hemp cultivars. The 2021 crop exceeded expectations by 20% and is set to supply the Canadian market in 2022. The CW1AS1 cultivar, vital for their Original Formula, will prioritize medical cannabis patients. The company aims to leverage its strong brand presence and strategic partnerships for distribution in Canada, focusing on a largely untapped hemp CBD market. This expansion may open doors for international sales of hemp biomass and extracts.

Charlotte's Web Holdings has launched two new oral sprays: Calm Spray and Sleep Spray, formulated with CBG and CBN to help manage stress and support sleep. Each 10mL spray costs $49.99 and contains proprietary THC-free hemp extract along with beneficial botanicals. The Calm Spray supports relaxation, while the Sleep Spray aids sleep cycles. Available exclusively on the e-commerce site initially, the products will be released nationwide in 2022. Vice President Reed Damon emphasized a faster go-to-market strategy and rigorous safety standards for these innovative products.

Charlotte's Web Holdings, Inc. has launched new Skin Health & Allergy Support Chews for dogs, designed to aid canine skin health during allergy seasons. The chews contain proprietary full-spectrum hemp extract and beneficial botanicals, including Biotin and Nettle Leaf. Available in chicken flavor, they come in 30-count ($19.99) and 60-count ($34.99) sizes. All products undergo rigorous testing for quality and safety. With skin issues being a common concern among pets, these chews offer a natural solution, leveraging CBD's proven safety for canines as confirmed by Colorado State University.

Charlotte's Web has achieved USDA organic certification for its corporate farm acreage and manufacturing facility, allowing select full-spectrum hemp extract tinctures to bear the USDA Organic Seal. This certification enhances the company's commitment to sustainable farming practices and quality standards. Customers can now purchase certified organic tinctures in various flavors and sizes, emphasizing the presence of beneficial nutrients. CEO Deanie Elsner remarked that this milestone reflects the company's continuous improvement and dedication to producing trusted hemp extract products.

Charlotte's Web Holdings is expanding its retail distribution in California following the passage of Assembly Bill 45 on October 6, allowing the sale of hemp-derived CBD products. This Law enables retailers in California to offer Charlotte's Web products amidst clear regulatory guidelines, enhancing consumer access to high-quality hemp dietary supplements. The company aims to increase product shipments to over 1,000 retail locations in the state, fostering economic opportunities and job creation within the hemp industry.

Charlotte's Web has expanded its gummy product line by introducing three new offerings: Daily Wellness, THC-Free, and Immunity gummies. These products will be available online and shipped to over 14,000 retail partners across the U.S. starting next month. The new gummies feature full-spectrum and broad-spectrum hemp extracts with varying CBD strengths and added vitamins for enhanced wellness. The CEO emphasized the importance of gummies as a leading delivery format in the rapid-growing hemp wellness sector. All products are vegan and non-GMO.

Charlotte's Web Holdings reported Q2 2021 financial results, showing a 11.4% year-over-year revenue growth to $24.2 million. Direct-to-consumer (DTC) revenue increased slightly by 1.0%, while business-to-business (B2B) revenue surged by 37.7%. Gross profit rose to 65.5% of revenue. The company reduced operating expenses by 15.2% and improved adjusted EBITDA losses to ($3.9 million). With $27.1 million in cash and $90.1 million in working capital, Charlotte's Web is positioned for growth in retail and the cannabis wellness market.

Charlotte's Web Holdings announced a collaborative research project with Colorado State University focusing on the phytochemical profile of hemp extracts. This first phase explores how genetic factors, environmental conditions, and extraction methods influence cannabinoid profiles in full-spectrum hemp extracts. Under the guidance of Dr. Jessica Prenni, the research aims to standardize chemical profiles for consistency. The project is part of Charlotte's Web's commitment to advancing scientific understanding of hemp, with phase I findings expected to be published after peer review.