Charlotte's Web Holdings Strengthens Balance Sheet After Closing Transactions with British American Tobacco
Charlotte's Web Holdings (CWEB.TO) has strengthened its balance sheet and enhanced its capital position after closing transactions with British American Tobacco subsidiary BT DE Investments (BAT), Charlotte's Web said overnight Thursday.Charlotte's Web, a provider of hemp extract wellness products, closed the amendment and conversion of BAT's outstanding C$75.3 million principal amount of the convertible debenture into common shares of Charlotte's Web at a conversion price of C$0.94 per share.Charlotte's Web also completed a concurrent additional equity investment by BAT of US$10 million through a private placement priced at C$0.94 per share.The company plans to use the proceeds from the private placements for its participation in the anticipated CMMI Medicare pilot program and other medical channel initiatives.The program creates a pathway for eligible Medicare beneficiaries to access cannabidiol products through consultation with their physician."With increased financial flexibility and a streamlined capital structure, we are better positioned to execute our growth strategy, expand access, and deliver long-term value for our shareholders," Chief Executive Officer Bill Morachnick said.
