Charlotte's Web Holdings Archives - Green Market Report

StaffJune 13, 2023


The Daily Hit is a recap of the top financial news stories for June 13, 2023.

On the Site

Would-be Whistleblowers Facing Countersuit from Former Employer

A pair of former employees at a California marijuana company who tried to blow the whistle on millions of dollars worth of cannabis counterfeiting and diversion are now facing a lawsuit from their ex-boss, who denied all wrongdoing and claims instead that the two employees were thieves. Read more here.

Stanley Brothers Accuse Charlotte’s Web of Ignoring Shareholders

Jesse and Joel Stanley, the co-founders of Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF), have accused the company’s board of ignoring shareholders’ demand for change. Rather than engaging with their concerns, the brothers claim that the board has pointed them towards legal counsel. Read more here.

Connecticut Latest in String of States to Enact 280E Relief

Connecticut on Tuesday became the latest in a national trend of states with operational marijuana markets to approve state-level relief from the 280E provision of the federal tax code. The new state budget signed by Gov. Ned Lamont will let cannabis companies claim state tax breaks in the same amount they would have been entitled to from the federal government if 280E did not exist. Read more here.

Founding Director of Cannabis NYC on the Factors Thwarting the Adult-Use Rollout

Dasheeda Dawson talked to Crain’s New York Business about persuading legacy operators to join New York’s legal market, ensuring that the industry is just and equitable as well as profitable, and what we should — and shouldn’t — tell young people about cannabis. Read more here.

In Other News

ZYUS Life Sciences Corp.

Zyus Life Sciences Corp. completed the previously announced reverse takeover transaction with Zyus Life Sciences Inc., in accordance with the terms of an arrangement agreement dated Nov. 15, 2022. Under the arranged Phoenix Canada Oil Company Ltd. and the former Zyus completed a business combination, through which the former Zyus entity is now a wholly owned subsidiary of the company. The combined entity is expected to commence trading on the TSX under the ticker symbol ZYUS on June 19. Read more here.

Humble & Fume

Humble & Fume Inc. (CSE: HMBL) (OTCQX: HUMBF) closed on its non-brokered private placement of convertible debenture units of the company in aggregate principal amount of C$1,540,000. Read more here.

Hempsana Holdings Ltd.

Hempsana (CSE: HMPS)entered into an agreement to restructure the previously announced investment in the corporation by Antosh Consulting Inc. into an equity issuance, following consultation with the Canadian Securities Exchange. The investor has agreed to purchase 30 million units of Hempsana at a price of $0.03 per unit, for a total purchase price of $900,000. Read more here.

StaffJune 12, 2023


The Daily Hit is a recap of the top financial news stories for June 12, 2023.

On the Site

Nevada Ups Marijuana Purchase Limits, Enacts Pro-Business Reforms

Nevada lawmakers this week gave final approval to a wide-ranging cannabis reform bill that pushed through several changes to how the state industry is allowed to operate. The bill, which was passed by the legislature on June 5, now goes to Gov. Joe Lombardo for his signature. Read more here.

Alabama Names 21 Medical Marijuana License Winners

The Alabama Medical Cannabis Commission on Monday handed out the maximum number of dispensary, processor, and “integrated facility” business permits, but only a third of the possible cultivation licenses, just three secure transporters, and a lone testing lab. Read more here.

Connecticut Recreational Sales Pass Medical for First Time in May

The newly established adult-use cannabis market in Connecticut appears to have found its footing. Recreational sales inched past medical sales numbers last month for the first time since the market launched in January, according to state data. Read more here.

Charlotte’s Web Founders Want Back on the Board

There’s an internal war escalating within the boardroom of Charlotte’s Web (TSX: CWEB) (OTCQX: CWBHF), with its former founders demanding capitulation. Ahead of the company’s annual general meeting, shareholders who represent nearly a quarter of the voting shares are publicly opposing four director nominees. Read more here.

Culta Buys Dispensaries Despite Ongoing Nonpayment of Court Judgment

Culta announced that it would buy two female-owned dispensaries, Growing Ventures (dba Greenhouse Wellness) and K&R Holdings (dba Kannavis) for an undisclosed amount. But, the company is also in trouble for not paying a court judgment with an ex-partner and for not paying taxes. Read more here.

Sublocade Maker Indivior Takes on US Market with Nasdaq Listing

Indivior (LSE: INDV), known for its development of medications to treat substance use disorders and serious mental illnesses, hopes that this additional U.S. listing will raise its profile within its largest market. The company plans to maintain its premium listing on the London Stock Exchange and its position in the FTSE 250 index. Read more here.

In Other News

University of Mississippi

The National Institute of Drug Abuse (NIDA) awarded the University of Mississippi a new five-year contract, as well as a $2 million work order for the cultivation of marijuana and related materials for research. Read more here.

1CM Inc.

1CM Inc. (CSE: EPIC) (OTCQB: MILFF) announced a private placement to issue 3,333,333 common shares at a price of $1.50 per share for total gross proceeds of up to $5 million in a non-brokered private placement to certain “accredited investors.” Read more here.


With a little more than a year left in his term, Gov. John Carney announced Monday morning a major shake-up in his cabinet, including naming the state’s first Marijuana Commissioner. As the state’s Marijuana Commissioner, Robert Coupe will be tasked with organizing up an oversight office, outlining regulations and issuing 125 licenses to grow and sell cannabis. Read more here.

StaffApril 6, 2023


The Daily Hit is a recap of the top financial news stories for April 6, 2023.

On the Site

Feds Charge Former Michigan House Speaker in Marijuana Investigation

Federal prosecutors announced corruption charges Thursday against former Michigan House Speaker Rick Johnson and three others in connection to bribes paid for marijuana licenses. The announcement, made by the U.S. Attorney’s Office in Grand Rapids, comes on the heels of a multiyear investigation into Johnson’s time chairing the former Michigan Medical Marihuana Licensing Board. Read more here.

Tobacco Titan Teams Up with Charlotte’s Web on New Drug Venture

Hemp extract wellness giant Charlotte’s Web Holdings Inc. (TSX: CWEB) (OTCQX: CWBHF) entered into a joint venture with botanical drug developer AJNA BioSciences and London-based British American Tobacco (NYSE: BTI) to develop a new drug for an an undisclosed neurological condition. Read more here.

Ohio’s Second Round of Dispensaries Slow to Open

Ohio’s expansion of its medical marijuana industry last year was supposed to bring another 73 dispensaries to the state, but so far, only 14 of those have opened for business – despite rules that required them to be ready for customers within 270 days. Read more here.

Missouri Continues to Siphon Customers from Illinois

The number of out-of-state buyers coming to Illinois for cannabis dropped in March, a signal that neighboring Missouri’s booming recreational market continues to lure customers away. But the state’s retailers still raked in $134.8 million in sales for the month. Read more here.

Lifeist Grows Roilty Brand as Revenues Rise in 2022

Product expansion has proven to be a winning strategy for Canadian health-tech company Lifeist Wellness Inc. (TSXV: LFST) (OTCMKTS: NXTTF), which owns cannabis brand Roilty. Roilty’s unit sales rose by more than 30% since the fourth quarter of 2022, with the expansion of its product line being a main contributing factor. Read more here.

In Other News

Tilray Brands

Tilray Medical, the medical cannabis division of Tilray Brands Inc. (Nasdaq: TLRY; TSX: TLRY), expanded in the Czech Republic through a new export and distribution partnership with Cansativa Group. The new strategic partnership broadens Tilray Medical’s distribution of EU-GMP certified medical cannabis products across pharmacies and hospitals to support medical cannabis patient care. Read more here.

Jushi Holdings

Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF), a vertically integrated, multistate cannabis operator, closed on a secured commercial loan with FVCbank for gross proceeds of $20 million. The proceeds of the loan will be used for working capital and other corporate purposes. Read more here.

Amesbury, Massachusetts

A Massachusetts appeals panel cleared the former mayor of Amesbury against allegations that he interfered with a cannabis company’s application for a license, saying the company failed to show that the former mayor acted in bad faith. In an order filed Wednesday, the three-judge panel of the Massachusetts Appeals Court affirmed the dismissal of two counts against C. Kenneth Gray and one against the city in a suit brought by Kirby Mastrangelo and Candace Kattar, who run CKR Natural Solutions LLC. Read more here.

StaffSeptember 27, 2022


The Daily Hit is a recap of cannabis business news for Sept. 27, 2022.


10 Multistate Cannabis Companies Owe Half a Billion in Federal Taxes

All told, the 10 multistate operators owe the Internal Revenue Service an eye-popping $507,193,000, according to their second quarter financial reports. Much, or perhaps all, of the tax debts have been deliberately not paid by companies so that the businesses can use the cash to fund operations or other plans, multiple sources said. Read our analysis here.

Canadian Cannabis Giant Canopy Growth Quits Retail Game

The once-high-flying Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) announced Tuesday that it’s selling off all of its retail cannabis stores across Canada in order to focus on “its path to profitability.” That path means being more of a core consumer packaged goods business instead of a vertically integrated cannabis company, according to a news release from the company. Read more here.

Real Brands to Buy Boulder Botanical for $12 Million

Real Brands (OTCQB: RLBD) agreed to acquire Boulder Botanical & Biosciences Laboratories, a manufacturer of white-label and private-label wellness and sports medicine herbal supplements and CBD products, from Frankens Investment Fund LLC, which acquired Boulder Botanical in April 2022. Read more here.


Charlotte’s Web Signs Distribution Agreement with Southern Glazer’s Wine & Spirits

Charlotte’s Web Holdings, a manufacturer of hemp-derived cannabidiol extract wellness products, has signed a multiyear distribution agreement with Southern Glazer’s Wine & Spirits, a distributor of wine and spirits. Charlotte’s Web CBD gummies, capsules and oil tinctures will be available through Southern Glazer’s retail customer network. Read more here.

The Parent Co. Completes Acquisition of Calma

TPCO Holding Corp. (The Parent Co.) (NEO: GRAM.U) (OTCQX: GRAMF) completed its acquisition of the remaining 15% equity of its Calma Weho LLC dispensary following receipt of all necessary regulatory approvals. Located in the Los Angeles metropolitan region, the 3,250 square foot dispensary is one of only 11 stores in the West Hollywood area licensed for storefront retail. Read more here.

Entourage Launches Medical Cannabis Marketplace

Entourage Health Corp. (TSX-V:ENTG) (OTCQX:ETRGF) (FSE:4WE), a Canadian producer and distributor of cannabis products, has launched Syndicate, a direct-to-patient medical cannabis marketplace. The Syndicate marketplace showcases a variety of specially curated products and formats made in-house and/or sourced from microcultivators looking for a medical distribution outlet. Read more here.

Adam JacksonAugust 9, 2022


Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) missed expectations as the CBD company continues to struggle amid a patchwork regulatory landscape. The company reported its financial results for the second quarter ending June 30, 2022.

For the key metric of total revenue, Charlotte’s Web missed expectations as it delivered approximately $18.9 million during the period — missing the Yahoo Finance Average analyst estimate for revenues of $27.13 million. The revenue decreased 21.8% versus $24.2 million in the same period last year. The company said that the decrease was primarily due to lower comparable customer shipments, consumer shift to lower priced formats, a return reserve as well as lower comparable online traffic.

Charlotte’s Web also reported a second-quarter net loss of $7.9 million compared to a net loss of $5.9 million in the same period last year. The company said that the net result was primarily impacted by “lower net revenues, higher return reserves and increased inventory provisions, which were offset by significantly reduced operating expenses.” The earnings were for a loss of five cents per share, a cent below analysts’ loss estimates of four cents a share.

“While we are disappointed with the second quarter revenue, we achieved significant distribution and customer wins consistent with our growth priorities to expand our coverage in existing channels and enter new vertical,” CEO Jacques Tortoroli said. “We’re also focused on improving operating cash flow as we progress through the second half of the year. Operating expenses were down over 31.5% year-over-year in the second quarter. In July, we further lowered our staffing levels and administration expenses. In aggregate, our focus on right-sizing our business is bringing operating expenses below $70M on an annualized run rate.”

The company also saw a $2.4 million decline in the e-commerce platform versus $15.7 million at the same time last year. Charlotte’s Web maintains the largest e-commerce business in the CBD industry; and e-commerce represents the largest channel in the industry with an approximate 40% market share, according to the Brightfield Group.

Business-to-business net revenue was $5.6 million after a $0.9 million returns reserves — representing $2.9 million, or 33.9%, lower year-over-year “primarily due to lower comparable shipments to some of the company’s largest retail customers.”

“Charlotte’s Web holds the number one share position across major retail channels including food/drug/mass retail, natural grocery & vitamin retailers, and e-commerce, based on market share data from leading third-party analysts such as The Nielsen Company and Brightfield Group,” the release said.

Gross profit was $9.3M, or 49.4% of revenue versus $15.8 million and 65.5% of revenue respectively in same period last year. The company said the decrease was primarily related to lower net revenue “including a $0.9 million customer return reserve, and $1.9 million of inventory provisions.” Excluding the return reserve and inventory provisions, gross profit was 61.0% of revenue, it said.

Adjusted EBITDA fell to $5.4 million in the second quarter, versus a loss of $5.1 million in the same period last year.

Net cash used from operations during the first half of the current fiscal year was $4.3 million versus $16.2 million for the same period last year.  The company’s cash and working capital as of the second quarter were $14.8 million and $64.6 million, respectively, versus $19.5 million and $75.6 million in the latter half of the previous fiscal year.

Total selling, general and administrative expenses of $17.3 million improved 31.5% year-over-year due to a $7.9 million reduction versus the second quarter last year. The company said the improvement reflects lower staff levels and compensation as well as increased operating efficiencies “resulting from actions implemented year-to-date.”

New Pathways For CBD

As companies in the cannabis sector suffer from a lack of regulatory guidance from the federal government, new opportunities are opening up for CBD companies.

Overseas, the company’s original CBD oil formula has been placed on the Foods Standards Agency list of products allowed to be sold in the U.K — making Charlotte’s Web the only substantially vertically-integrated U.S. company with a full-spectrum hemp extract to have passed the validation phase and advance to the safety assessment phase in the United Kingdom, it said.

Also, the Scientific Advisory Committee for Health Canada unanimously agreed CBD is “safe and tolerable for short-term use” — recommended hemp CBD products should be considered for mainstream retail availability.

Cory Pala, Director of Investment Relations, told The Green Market Report at the time that the company is “particularly excited” about the recommendation.

The company cannot legally export its products to Canada under current law “which is sort of ironic” considering it is federally legal in both countries, he said, so it has partnered with cultivators in the country instead. The new recommendation presents a juncture for the company.

“In the US, we have 2,500 different competitors that have similar products,” Pala said. “But in Canada, we have maybe half a dozen, if that. And so it’s really, really compelling to us as a market opportunity. This is big for multiple reasons.”

The health board will take consultation with stakeholders and advocates to hash out regulation guidelines and figure out whether it actually wants to move in that direction before seeking approval from the Canadian government.

Debra BorchardtDecember 17, 2021


Charlotte’s Web Holdings, Inc. (OTCQX: CWBHF) made major leadership changes in the company’s c-suite. Jacques Tortoroli, the former Chief Administrative Officer of Bacardi Ltd., the world’s largest privately-held spirits company, has been appointed Chief Executive Officer of Charlotte’s Web, replacing outgoing CEO, Deanie Elsner.

Elsner joined the company in May 2019, but in the last few quarters the company has suffered from falling revenue. A combination of FDA delays on defining the usage of CBD products to massive competition in the CBD space has conspired to hurt one of the original medical marijuana companies.

In addition to the resignation of Elsner, Wes Booysen, Charlotte’s Web Chief Financial Officer, is assuming expanded responsibilities under the title of Chief Financial & Operating Officer. In last month’s earnings release Booysen said “Temporary supply chain disruptions affected some product availability, dampening revenue growth for the quarter. We substantially resolved these issues in October and are back on our growth trajectory with the holiday buying season in the fourth quarter. In parallel, we are streamlining operations and reducing expenses to position the business for positive Adjusted EBITDA in 2022.”

Jared Stanley, Charlotte’s Web Co-founder and Chief Cultivation Officer, will assume an expanded role as Chief Cultivation and Innovation Officer responsible for hemp cultivation, extraction, cannabinoid R&D and product development.

“I am delighted to be able to work closely with Wes, Jared and the broader team and excited about the opportunities we have in front of us,” said Tortoroli. “Domestically, Charlotte’s Web continues to innovate and grow market share, but internationally – where we are increasing our focus – markets present even more attractive opportunities for accelerated growth.”  Tortoroli has little experience in the cannabis industry but was also former President of Bacardi International Limited and brings significant global executive leadership experience. His 40-year career includes launching ecommerce platforms, global finance, mergers & acquisitions, and strategic partnerships through various senior executive roles at Bacardi, Viacom Inc., Young & Rubicam Inc., PepsiCo Inc., and KPMG.

“Jacques’s strong track record of driving international brand equity through product innovation and customer relationships will be invaluable to Charlotte’s Web,” said John Held, Chairman of the Board.


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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