Charlotte's Web Archives - Green Market Report

Debra BorchardtDebra BorchardtMarch 25, 2021
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Charlotte’s Web Holdings, Inc.  (OTCQX: CWBHF) looks like it has been able to regain some ground after the pandemic caused the company a lot of disruption as retailers were closed for some time. Charlotte’s Web reported revenue increased 17.9% to $26.9 million in the fourth quarter of 2020 versus $22.8 million for the same time period in 2019. The company said DTC (direct-to-consumer) sales increased 21.2% year-over-year, contributing $17.4 million or 64.8% of the fourth-quarter revenue. While it was a positive turn of events, the company missed revenue estimates of $27.5 million according to Yahoo Finance.

For the full year, total net revenue increased to $95.2 million vs. $94.6 million in 2019. The company said DTC eCommerce sales grew 27.6% in 2020 contributing 67.0% of total revenue, substantially offsetting a decline of 29.5% in B2B sales impacted by the COVID-19 pandemic.

“We turned a challenging start to 2020 into a strong finish, taking multiple actions and outperforming much of the competitive set to extend our brand and market share leadership,” said Deanie Elsner, CEO of Charlotte’s Web. “We filled product and channel gaps with competitive offerings and advanced the science of hemp CBD through CW Labs and collaborative studies with top-tier institutions. We have now protected our intellectual property with 5 patents awarded for our proprietary cultivars and have defended our trademarked Charlotte’s Web brand through a recent judgment.”

E-Commerce Business Builds

During 2020 Charlotte’s web said it implemented a competitive pricing realignment strategy across its product portfolio resulting in increased unit sales and expanded market share in the second half offsetting some of the headwinds created by COVID-19.  B2B net sales increased 12.4% year-over-year supported by expanded topical product offerings. DTC net sales grew by 21.2% year-over-year supported by the pricing realignment and higher conversion rates through ongoing marketing and social media programs. Year-over-year new consumer acquisitions increased 52% and conversion rates increased 98%.

Cutting Expenses

Charlotte’s Web also made headway as it cut Operating expenses by 10.4% to $23.6 million from $26.4 million. The company noted that the high operating expenses were due to its investments in capacity expansion and transition to a consumer-packaged-goods (“CPG”) operating company capable of supporting mass retail channel growth. In response to lower B2B retail sales growth during the pandemic, management said it took actions to better align operating expenses through an expense optimization program successfully achieving reductions of more than 10% of the consolidated expense run rate by the end of 2020. “This was achieved despite the addition of the CW Labs R&D division and the Abacus acquisition during the year. As a percent of revenue operating expenses improved from 136%, to 113% and 88% for Q2, Q3 and Q4, respectively in 2020.”

The company said it used $5.1 million of cash in operations during the fourth quarter of 2020 compared to $8.6 million of cash used in operations during the fourth quarter of 2019. Charlotte’s Web cash and working capital at December 31, 2020, were $52.8 million and $113.6 million, respectively, compared to $68.6 million and $116.9 million on December 31, 2019.

Elsner added, “In 2021 we are positioning for long-term growth and shareholder value creation as we evolve towards establishing Charlotte’s Web as a leading global botanicals wellness company by expanding into cannabis wellness where federally permissible. To support our international growth we have an exclusive agreement with one of Israel’s largest medical cannabis producers, and in the U.S. we secured future optionality through a strategic option to acquire Stanley Brothers cannabis business pending US federal legalization of cannabis.”


Kaitlin DomangueKaitlin DomangueMarch 4, 2021
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It’s time for your Daily Hit of cannabis financial news for March 4th, 2021. 

On the Site

Columbia Care Guides Higher for 2021

Columbia Care Inc.  (OTCQX: CCHWF)  released preliminary results for the fourth quarter and full year ended December 31, 2020 and issued 2021 guidance. Actual revenue rose 228% in the fourth quarter to $76 million versus $23 million for the same time period in 2019. 

While this is a solid performance, it does miss the analyst estimates for revenue of $79 million in the fourth quarter according to Yahoo Finance. The combined results for the fourth quarter are listed as $81 million. 

 

Cannabis Companies Go On Buying Spree

This week has been unusually active as cannabis companies have been on a major buying spree.

  • Schwazze acquires Star Buds for roughly $72.3 million
  • Greenlane acquires Eyce for an undisclosed amount
  • Terra Tech buys UMBRLA, Inc., recently rebranded as Unrivaled for an undisclosed amount

 

PACT Act to Apply to All Vaping Products

Amendments to the Prevent All Cigarette Trafficking (PACT) Act may have caused cannabis to hit yet another setback. The PACT Actt has been amended to include “electronic nicotine delivery systems”, which looks inclusive to cannabis at first glance. However, it’s described as followed:

“any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device including an e-cigarette; an e-hookah; an e-cigar; a vape pen; an advanced refillable personal vaporizer; an electronic pipe; and any component, liquid, part, or accessory of a device described without regard to whether the component, liquid, part, or accessory is sold separately from the device.”

This means that USPS can no longer deliver cannabis vape products to consumers. 

 

Delic Moves To Focus On At-Home Mushroom With Homestead Acquisition

Psychedelic media company Delic Holdings Inc. (OTCQB: DELCF) has acquired mushroom kit maker and media company Homestead brands in an all-stock deal. DELIC issued subordinate voting shares worth $50,000 and 50,000 incentive stock options were also granted to Homestead founder David Tatelman, with an exercise price of $0.58. David Tatelman will act as a consultant to the company.

 

Charlotte’s Web Moving Beyond Hemp

Well-known hemp CBD company Charlotte’s Web Holdings, Inc.  (OTCQX: CWBHF) is expanding beyond its current model with a planned acquisition of privately-held Stanley Brothers USA Holdings. Stanley Brothers is a cannabis wellness incubator currently operating in three states (Colorado, California, Florida) with expansion plans underway in eight additional states.

The acquisition though isn’t immediate. Instead, Charlotte’s Web is pursuing a five-year option plan valued at $8 million, which could be extended to seven years.

In Other News

Tryp Therapeutics Announces Application to List on OTCQB

Pharmaceutical company focused on identifying and developing clinical-stage compounds for diseases with complex and unmet medical care, announced today their application to list on the OTCQB® Venture Market OTCQB. 

 

Illinois Dispensaries See $2.88 Million in Daily Sales in February 

Illinois dispensaries sold almost $2.9 million dollars worth of cannabis last month, outpacing the record set just one month earlier. The state’s retail shops sold more than $80 dollars in adult-use cannabis last month, a slight drop from $88 million in February. 


Debra BorchardtDebra BorchardtMarch 4, 2021
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Well-known hemp CBD company Charlotte’s Web Holdings, Inc.  (OTCQX: CWBHF) is expanding beyond its current model with a planned acquisition of privately-held Stanley Brothers USA Holdings. Stanley Brothers is a cannabis wellness incubator currently operating in three states (ColoradoCaliforniaFlorida) with expansion plans underway in eight additional states.

The acquisition though isn’t immediate. Instead, Charlotte’s Web is pursuing a five-year option plan valued at $8 million, which could be extended to seven years. However, the acquisition could also happen in three years and upon the federal legalization of cannabis in the U.S. The company stated that the common shares of Charlotte’s Web continue to trade on the TSX in Canada and OTCQX in the US. The payment will be made in stock, which has fallen on the news.

“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,” explained Deanie Elsner, CEO of Charlotte’s Web. “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.”

Stanley Brothers combines full-spectrum cannabis extracts with functional botanical ingredients. Marketed under the “ReCreate” brand, the wellness formulations are lower in THC for more precisely controllable benefits. Products include functional chocolates, gummies and oil tinctures, formulated with the wellness benefits of the entire cannabis plant including CBD and THC to help achieve a desired state of wellbeing.

Charlotte’s Web Revenue Woes

Charlotte’s Web had a difficult year in 2020 as the pandemic closed many retailers which hurt sales. The company has missed earnings estimates for three quarters in a row according to Yahoo Finance. The company has also faced intense competition from thousands of CBD companies that have launched over the past two years since hemp was legalized. On top of those problems, the company has faced a lawsuit challenging its ability to patent the strain which is the company’s namesake. So it’s no surprise that the company is seeking a way to expand beyond legal hemp products.

The two companies also share a lineage with the founders. Two founders of Stanley Brothers USA are also members of Charlotte’s Web board of directors. As a result of the planned acquisition Stanley Brothers co-founders Joel Stanley and Jared Stanley are resigning as members of the Charlotte’s Web board of directors and will take board positions at Stanley Brothers.

Option Details

According to the company statement, upon the occurrence of the Triggering Event, the Company may exercise the Option to acquire Stanley Brothers USA for a purchase price to be determined at the time of exercise of the Option. The purchase price determination will involve weighted application of 3.5 times revenue and 13.5 times EBITDA multiples to Stanley Brothers USA’s financial statements at the relevant time, or a base amount and earn-out, in certain circumstances. The purchase price will be subject to customary adjustments for working capital, debt and cash at closing, and certain portions of the purchase price may be held back to cover post-closing adjustments and indemnification matters.

 


Debra BorchardtDebra BorchardtSeptember 14, 2020
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 Charlotte’s Web Holdings, Inc. (OTCQX: CWBHF) reported that revenue fell from revenue $25 million in the 2019 second quarter to $21.6 million for the second quarter ending June 30, 2020. The company missed the average estimate for revenues, which was $25.9 million according to Yahoo Finance. The company also missed the earnings estimate of -$0.04 with an reported earnings of -$0.13.

The company blamed the drop on the pandemic saying, “COVID-19 has impacted the Company’s retail and health practitioner channels due to lower foot traffic and temporary location closures under the pandemic. Limited disruption has occurred within production and manufacturing operations, however, the company‎’‎s back office and reporting functions have been impacted and additional time was required for the consolidated second-quarter filing.”

The company also delivered a net loss of $14 million for the quarter versus last year’s net income of $2.2 million for the same time period. On a positive note, Charlotte’s Web did report that strong DTC (direct to consumer) sales largely offset a 54.5% decrease in B2B retail sales which accounted for 28.2% of total revenue in the quarter. DTC net sales grew by 33.6% year-over-year as online traffic and high conversion rates increased through ongoing marketing and social media programs.

“Second-quarter revenue was below expectations due to the impact of COVID-19 on retail sales,” stated Deanie Elsner, CEO of Charlotte’s Web. “However, our DTC sales increased by 33.6%, largely offsetting declines in B2B retail sales.  We made excellent progress building out our infrastructure and expanding our product portfolio with the closing of the Abacus acquisition.  Abacus CBD Medic™ products are now being sold through our online store and we look forward to realizing more cross-selling revenue synergies with Abacus through our FDM partners.”

Rising Expenses

Expansion has cost the company in terms of rising expenses. Operating expenses jumped 82% to $29.5 million over last year’s $16.2 million. The company said that the increase reflected its investments in capacity expansion and transition to a consumer-packaged goods (“CPG”) operating company capable of supporting mass retail channel growth. The increase included approximately $6 million of extraordinary expenses related to the Abacus acquisition and legal fees associated with the brand and intellectual property protection. Subsequent to Q2-2019, operating expenses increased as the company relocated into larger office facilities in Boulder, Colorado, and added senior CPG management to the leadership team along with related personnel. The company said that it is targeting a 10% reduction in expenses to match the falling revenue.

Charlotte’s Web completed the acquisition of Abacus Health Products, Inc. in June with an all-stock transaction. Abacus is a leading provider of over-the-counter topical products for pain relief and skincare containing CBD hemp extracts. In the third quarter, Charlotte’s Web began implementing operating cost synergies with Abacus and will continue through the remainder of the year. Further cost synergies are targeted in 2021 through integration into the Company’s new production and fulfillment center.

The company has been fighting a legal battle over the use of the name Charlotte’s Web. The company does not want any other brands to use the name Charlotte’s Web, while others believe it is just a strain name and that no company should be allowed to own a strain name.

Looking Ahead

Russ Hammer, Chief Financial Officer said, “We are seeing improvements and a stronger back half in our DTC channel, but without a meaningful opening up of the economy and health practitioner channel we expect only flat to modest consolidated net revenue growth for 2020. Our long view market opportunity remains intact and we continue to add new customers, doors, and products. Our Q3 revenues are trending ahead of Q2 sales levels and we anticipate reopening of retail locations in the U.S. will support a positive growth trend. As we see resolutions in COVID-19 and hemp CBD regulations or legislation we can see the category build towards its full potential.”


Debra BorchardtDebra BorchardtJune 12, 2020
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The Stanley Brothers in Colorado made their name by targeting a strain called Charlotte’s Web that had greater amounts of CBD than THC in order to treat a young girl with a rare form of epilepsy. The girl, Charlotte Figi, suffered from Dravet Syndrome that caused her to have multiple seizures in a single day. This strain of cannabis seemed to quell the seizures and allowed her to live a better life. Sadly, Figi recently passed away.

The company called the strain Charlotte’s Web in her honor and even changed its name to Charlotte’s Web Holding Inc. (OTC:CWBHF). Then the company attempted to trademark the name Charlotte’s Web, but was rejected. In October 2019, the United States Patent & Trademark Office rejected the trademark application for “Charlotte’s Web” in a nonfinal Office Action.  The USPTO specifically found that the name “Charlotte’s Web identifies a particular strain of low THC, high CBD content Cannabis sativa plants” does not function as a trademark.

CBD company AAXLL contends that anyone can use the name Charlotte’s Web since it isn’t trademarked. The company believes that CWI made “a serious mistake in adopting the generic name of a strain as its corporate and brand name since everyone has the right to use the name of a strain.”

The logic here is that no company can trademark a specific strain of cannabis. No one company can own the Jack Herer or Purple Kush or Girl Scout Cookies. However, master growers often apply for patents on strains they create as intellectual property. GW Pharmaceuticals (GWPH) has numerous patent applications for various cannabis drug combinations. Since the federal government is loathe to trademark anything related to marijuana, states stepped in to protect various brand names.

AAXALL Fights Back

AAXLL disputes CWI’s central allegation that Charlotte’s Web is not the name of a strain of hemp.  AAXLL CEO Joseph Maskell notes that CWI itself referred to “the Charlotte’s Web strain” in its own 2019 public offering documents.

Maskell also states, “U.S. federal trademark law already dictates that cultivar or strain names are generic from the get-go, so the Charlotte’s Web name of the strain was never protected as a trademark. CWI cannot prevent the rest of the world from referring to Charlotte’s Web as a strain of hemp any more than a French winery could prevent the world from referring to Chardonnay as a varietal name of grapes.”

AAXLL’s Maskell comments that USPTO’s rejection of CWI’s trademark application would demonstrate Maskell concludes, “the family-run Balance CBD brand will not be bullied by CWI.  It’s shameful that a large publicly traded corporation uses such tactics to intimidate competition to try to cover up their past mistakes”

Charlotte’s Web Fights To Protect Name

Like any large company, Charlotte’s Web is fighting to protect its name. In a company filing it wrote, “CW currently has a portfolio of pending U.S. plant, utility and design patent applications directed to CW’s most promising plant genetics, proprietary extraction technology, cannabinoid isolation methods and cannabinoid conversion processes and industrial designs. CW also has pending U.S. and Canadian trademark applications.”

While AAXALL points to the government trademark rejection as a reason it should get to use the name, Charlotte’s Web says that the rejection was due to the product falling under the Controlled Substances Act and FD & C Act. Not because of a strain argument. It said it, “May rely on common law theories of trademark protection and enforcement in cases of actual or suspected trademark infringement of the trademarks it wishes to protect.” The company also noted that such battles to protect its name and trade secrets could be expensive.

Litigation Lineup

Any large company is always seen as a litigation target. There is the assumption that a big company has the money to settle a case rather than fight. Charlotte’s Web market share in the CBD industry is the largest and has at times been as much as a third, although competition has caused that number to decline.

The company faces a class-action lawsuit that its CBD products contain more hemp than the label says. The company contends the products are accurately labeled. Another lawsuit is being fought with AgriMed, who had the license to sell CW products in the state of Illinois. AgriMed says CW competed against it by selling CW products in the state as well. CW says that AriMed didn’t pay the royalties it said it would. That trial had been planned for May 2020.

 


Debra BorchardtDebra BorchardtMay 14, 2020
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Charlotte’s Web Holdings, Inc. (OTCQX:CWBHF) reported slipping first-quarter revenue for the period ending March 31, 2020. Charlotte’s Web delivered revenue of $21.5 million, slightly below last year’s revenue of $21.7 million for the same time period in 2019. However, this beat the Yahoo! Finance average analyst estimate of $20.78 million.

The earnings per share were reported at a negative $0.11 per share. This missed the analyst estimate for a negative $0.06 per share. The company attributed the drop to lower business-to-business (B2B) sales, but also noted that direct-to-consumer (DTC) sales increased.

The company also reported a net loss of $11.5 million versus last year’s net income of $2.3 million for the same time period. Charlotte’s Web also said that the adjusted EBITDA for the quarter was a negative $5.7 million or -26.5% of consolidated revenue compared to positive EBITDA of $4.5 million and 20.7% of consolidated revenue for the first quarter of 2019. The company said this reflected the substantial investments to support expected future revenue growth from the F/D/M channel.

“First quarter revenue was ahead of expectations driven by our strong DTC e-commerce sales enabled by our new technical platform and capabilities.  Operationally we have not had any business disruptions from COVID-19 and have adapted well to the remote working environment,” said Deanie Elsner , CEO of Charlotte’s Web.  “Strategically we implemented several strategies during the quarter to address the F/D/M channel, with new topical products, new pricing, and the announcement of our intent to acquire Abacus Health. We also launched CW Labs to drive break-through Innovation and to support the need for more science and data. These moves have been well received by our customers across all channels and we continue to execute on our plan for 2020.”

Too Much Competition

Despite owning a third of the CBD market, increased competition weighed on Charlotte’s Web. The company said that B2B sales were 31.5% lower year-over-year as the natural retail channel struggled with overcrowding due to increased competition. The company also stated that a lack of FDA regulatory guidelines for the F/D/M channel held back the adoption of ingestible products.

Customers though managed to find the Charlotte’s Web products online as DTC net sales grew by 29.4% through ongoing marketing and social media programs. The company said that year-over-year new consumer acquisitions increased 25% and conversion rates increased 77%. DTC net revenue accounted for 65.6% of total revenue in the first quarter compared to 50.2% for the same period in the prior year.

Cash Burn

The company used $14.9 million of cash in operations during the quarter versus the $3.7 million of cash that was used in the first quarter of 2019. The company said this was due to the construction of its new 137,000 sq. ft. production and fulfillment center to support anticipated growth. Still, the company is in great shape as its cash and working capital at the end of the quarter stood at $53 million and $114.9 million, respectively.

Looking Ahead

“We are modeling for revenue growth of 10% to 20% in 2020 and a return to positive adjusted EBITDA by the end of the year,” explained Russ Hammer, Chief Financial Officer of Charlotte’s Web. “As our new facilities come online later in the year, we expect to harness cost savings through our vertically integrated supply chain to support meaningful increases in adjusted EBITDA, and then continue to leverage against higher revenue as we enter 2021 and 2022.”

Canaccord Genuity analyst Derek Dley wrote in a research note dated May 13, 2020, “The company’s CPG focused management team is well-positioned to lead the company into newer markets as the FDA allows the FDM channels to sell ingestible products over time, in our view.”


StaffStaffMay 13, 2020
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Ever since recreational cannabis has stolen the stage, people tend to forget that cannabis is one of the oldest and most trusted medicines on the planet.

The medicinal properties within the plant are responsible for managing the symptoms associated in patients suffering from Epilepsy, Autism, Crohn’s Disease, Cancer, PTSD, and Chronic Pain to name just a few.

These brands have developed some of the best practices and formulations in the industry to treat a myriad of ailments with patents pending across the globe.

Our team decided to break down a list of the most respected medical brands and products within the cannabis industry globally.

Here they are:

 

1.) Charlotte’s Web:

More than just CBD: CBD plus naturally-occurring phytocannabinoids, terpenes, flavonoids and more in every CBD oil serving. The team from Charlotte’s Web uses limited, select ingredients to ensure you have the absolute best hemp extract possible. Their CBD oils include Charlotte’s Web premium hemp extract, carrier oil, and flavor. That’s it. Their products are U.S. Hemp Authority Certified. Charlotte’s Web CBD oils are whole-plant extracts that include a variety of of beneficial compounds, including phytocannabinoids, terpenes, flavonoids, and essential fatty acids.

 

2.) Aunt Zelda’s:

Aunt Zelda’s is a pioneering, data-driven developer of cannabis-based plant medicines. Our products are the result of years of research and development by founders, Mara Gordon and Stewart Smith, in consultation with knowledgeable physicians and world-renowned researchers.

Utilizing proven time-tested extraction processes improved with modern technology, Aunt Zelda’s offers medicines of precisely measured potency and purity that empower patients to dose to the milligram and unlock the therapeutic potential of cannabis.

If you prefer to obtain lab tested products created for specific ailments, Aunt Zelda’s will help you get there!

Aunt Zelda’s mission is to alleviate patient suffering through medical cannabis.  We help you, our patients, live fulfilling, healthy lives.

They provide unmatched expertise in the correct use of medical cannabis matched to disease-specific products with the highest purity in California.

Their goal is to create a positive and supportive community for medical cannabis users. They aspire to be your trusted source of cannabis resources and its safe, effective and responsible use

 

3.) HOPE Grows for Autism:

Formulation by: Zelira Therapeutics

HOPE is a Proprietary formulation specifically to address patient symptoms associated with Autism Spectrum Disorder.  The HOPE® Franchise has received support from organizations such as HOPE Grows for Autism, a leading autism advocacy group based in Pennsylvania. It has been the top performing product within the state and will soon be available for patients in Louisiana and throughout the US and Australia. 

In a company press release in December 2019, Zelira Therapeutics leadership said, “Our company will have the ability to distribute the HOPE® portfolio along with our additional products through licensing agreements with multi-state and international operators…”

HOPE 1 and HOPE 2 are part of a growing family of proprietary medical marijuana formulations. HOPE™ is created by extracting, isolating, and then re-assembling the medicinal compounds from the marijuana plant to achieve specific, targeted effects. HOPE™ was formulated with autism in mind and has quickly proved to be beneficial to other chronic conditions such as chronic pain, anxiety, neuropathy and others. HOPE™ has since become its manufacturer’s best-selling tincture.

 WHAT FORMS OF HOPE ARE AVAILABLE?

Available as a tincture, blended in 100% olive oil.

WHAT MAKES UP HOPE?

THC + CBD + Terpenes

Found in the trichomes of the plant, terpenes are plant oils with unique aromas and distinctive​ flavors (pine, citrus, mint) and are known to play​ a key role on the overall effects of each strain. ​ Terpenes also play a key role in differentiating​ the flavor and scent of marijuana. Some terpenes​ might promote relaxation, while others energy or​ focus.

 

4.) Ilera Holistic Healthcare:

ALAFIA — which means ‘inner peace’ in the Nigerian “Yoruba” language — is scientifically formulated, lab tested and pesticide free. Currently on the market are two formulated PURE CBD tinctures: Isolate CBD with 500mg and 1000mg  and Full Spectrum CBD with 500mg and 1000mg.  This product is Additional CBD products will be released at dispensaries in the state of Louisiana only.

“Our vision has always been patient access and affordability,” said Chanda Macias, chief executive officer of Ilera Holistic Healthcare. “It was imperative for us to bring high-quality products that support health and wellness.  Patients now have the ability to purchase ALAFIA over the counter without a prescription anywhere it is available.”  Dr. Chanda Macias said back in January 2020

5.) Haleigh’s Hope:

Extra strength has double the concentration than the regular strength, allowing the consumer to take less oil but still get the same desired therapeutic effect as the regular strength. Extra Strength products are recommended for people over 100 lbs.

This organically grown, whole plant extract contains a broad spectrum of naturally occurring plant based compounds that are clinically proven to provide a powerful combination of antioxidants and neuroprotectants. Haleigh’s Hope® was created from a proprietary genetic plant strain that was carefully bred and cultivated over seven years to achieve a precise combination of clinically proven, therapeutic plant compounds..

Haleigh’s Hope® grows, extracts, produces, packages and ships 100% of our product from our facilities in Colorado. Because we have exclusive control over our products from seed to sale, we ensure the highest levels of quality and consistency in the industry. Every batch of our product is lab tested for safety and quality.

Safflower is a cold pressed seed oil that is non-GMO and organic, and does not need to be shaken.

Exclusively grown and manufactured in Colorado, USA.


Julie AitchesonJulie AitchesonMay 12, 2020
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It is not news that medical marijuana companies are constantly innovating to offer cannabis-derived products specifically formulated for those suffering from life-threatening and debilitating illnesses such as autism, cancer, and epilepsy. What doesn’t regularly make the headlines is the fact that many of them are creating and partnering with non-profit organizations in order to support providers and patients in turning that life-saving (or at least life-enhancing) corner. 

Hope Grows For Autisma nonprofit aimed at improving the lives of families affected by autism through research, education, and the advocacy of medical natural treatments was founded by Erica Daniels. Daniels is the mother of an autistic child, and her quest for a better quality of life for her son and family led her to discover the overwhelming significance of diet and medical cannabis in addressing her child’s autism. Her organization’s mission inspired a partnership between Hope Grows For Autism and medical marijuana company Zelira Therapeutics (formerly Zelda Therapeutics, which merged with Ilera Healthcare to form Zelira) in the creation of their HOPE™ range of products, which are formulated specifically for autism spectrum disorders. These products are olive oil-based tinctures that include Hope 1, which has a 1 to 1 THC:CBD ratio, and Hope 2, with a THC:CBD ratio of 5 to 1.  These formulas were created with the specific challenges of autism in mind, and have become bestselling items for Zelira.

Then there is The Flowering HOPE Foundation, a non-profit started by Jason Cranford, founder of medical marijuana company Haleigh’s Hope. The Flowering HOPE Foundation facilitates safe, lawful access to medical marijuana for individuals suffering from multiple ailments including Crohn’s, cancer, and epilepsy. Flowering HOPE also participates in petitioning and lobbying for clearer regulatory guidelines around marijuana access and use, such as this case profiled by PR Newswire involving a challenge of the DEA’s classification of hemp oil and CBD products as Schedule 1 substances. 

No profile of medical marijuana companies flexing philanthropic muscle on behalf of those in need would be complete without a mention of Colorado flagship company, Charlotte’s Web. Charlotte’s Web enjoys an active partnership with the Realm of Caring Foundation, a non-profit that provides education for patients and healthcare providers, research, and support to families in need of access to medical marijuana. The organization seeks to build a supportive community among those benefiting from the use of medical marijuana in their healing protocols and providing the latest research to inform decisions about treatment. 

This community-building aspect, which all of the aforementioned non-profits share, is particularly valuable to families who do not find the support they need for their medical marijuana treatment protocols from health insurance companies and the larger medical community.  As the science of crafting highly targeted formulas for some of today’s most challenging medical conditions becomes ever more refined, it is both evident and encouraging that some of the industry’s leading medical marijuana companies remain committed to serving the people behind the profits.

 


Debra BorchardtDebra BorchardtApril 8, 2020
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Charlotte Figi came to fame as the sweet little girl who suffered hundreds of seizures a day from a rare condition called Dravet Syndrome. She was the patient that inspired the Colorado-based Stanley Brothers to create the cannabidiol (CBD) heavy version of cannabis to treat her condition back in 2011. The response was somewhat miraculous.

Unfortunately, Charlotte has passed away from COVID 19 at the age of 13. According to reports, she had tested positive and went to the hospital. She was released on Sunday, but apparently took a turn for the worse and returned. A family friend posted on Facebook “Charlotte is no longer suffering. She is seizure-free forever.” The family has requested privacy.

Charlotte’s parents were willing to take chances with cannabis as a treatment and their bravery resulted in the migration of many families to Colorado seeking the same treatment. She was featured in the now-famous CNN episode where she was treated on camera and millions were able to see with their own eyes the response CBD had on epileptic patients. She was six years old at the time and had been suffering from seizures since the age of three.

Colorado legalized medical marijuana and then adult-use marijuana causing the state to become the home of many cannabis companies. Stanley Brothers eventually changed the name of their company to Charlotte’s Web (OTC:CWBHF), the strain that was named after Charlotte. The company has ultimately captured 20% of the CBD market and is now a publicly-traded company with a market cap of $452 million. The company’s website posted the following message:

Charlotte was ten feet tall and carried the world on her shoulders.

Inspiring is a lacking word, as are courageous and vivacious and strong and beautiful.

She was divine.

She grew, cultivated by a community, protected by love, demanding that the world witness her suffering so that they might find a solution. She rose every day, awakening others with her courage, and with that smile that infected your spirit at the cellular level.

The infinite compassion of community members who sacrificed their time, resources, and ideas to tend her garden of love were instrumental in her care, but there was no one more committed than the selfless Paige, both a mother and a warrior, both a human and an angel. Charlotte’s cause was her family’s cause and created a foundation of plant-based health that breathed life into their daughter, and the countless sons and daughters like her.

Charlotte, then, became everyone’s daughter or sister or friend and enlivened empathy and love from anyone who had the privilege of hearing her story, as millions did. Her story built communities, her need built hope, and her legacy will continue to build harmony. 

To Paige, Matt, Greg, Max, and Chase – we are humbled by your grace, as the fruits of your kindness have fed the world with love.

She was a light that lit the world. She was a little girl who carried us all on her small shoulders.

Her legacy lives in the garden, in the blooming of ideas, in the fragrance of compassion, in the greenery of nurturing us to be better humans in all ways, always.

What began as her story, became the shared story of hundreds of thousands, and the inspiration of many millions more in the journey of their betterment. Charlotte was and will be, the heartbeat of our passion, and the conviction that the dignity and health of a human being is their right.

Charlotte, you are the light of our lives.

Thank you for your life, your bravery, and your beautiful soul.

We love you, Charlie.

-Joel, Jared, Jesse, Jon, Jordan, Josh, and Austin Stanley

 

 


Debra BorchardtDebra BorchardtNovember 13, 2019
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4min30460

Charlotte’s Web Holdings, Inc. (TSX: CWEB)(OTCQX: CWBHF)  reported that its revenue rose 41.8% to $25.1 million in the third quarter that ended September 30, 2019, versus $17.7 million for the same period in 2018. Still, the company delivered a net loss of $1.3 million versus last year’s net income of $1.8 million.

Rising Expenses

The operating expenses soared to $19.6 million over last year’s $9.8 million for the same time period. The company said in a statement that its “third-quarter operating expenses were $4.7 million”, but that isn’t the number that appeared in the financial table. The company did say that the rising expenses were “to support the Company’s growth and transition to a consumer-packaged goods operating company.

During the quarter Charlotte’s Web moved into larger office facilities in Boulder and added senior CPG management to the leadership team along with related personnel.  “Employee headcount was 307 on September 30, 2019, a 35.8% increase from 226 at September 30, 2018.”

“In an increasingly crowded, noisy and confusing CBD market, brands matter, and Charlotte’s Web is the most trusted hemp extract in the world,” said Deanie Elsner, Chief Executive Officer of Charlotte’s Web. “Consumer education is increasing and a 68% year-over-year increase in traffic through our online store drove Q3 B2C sales to new highs. As the CBD category’s flagship brand, we saw a similar 66% increase in sales pull into our B2B segment which includes the food/drug/mass (“FDM”) and natural health retail channels. This helped drive Q3 growth to 42% year-over-year.”

The revenue breakdown was as follows: Human consumables, topicals, and pet products grew by 43.6%, 156.7%, and 57.5%, respectively. On a year-over-year basis for the quarter ended September 30, 2019, B2C sales grew by 38.7% and accounted for 51.2% of total revenue in the quarter as online traffic increased 68% through expanded marketing and social media programs. B2B sales grew by 66.4% year-over-year and accounted for 48.8% of total revenue in the quarter as mass retailers including Kroger Co., Vitamin Shoppe and CVS Pharmacy locations entered the market in 2019.

Pets Performing

The company said that early sales traction for the new 12 SKU pet line from Charlotte’s Web has been encouraging with a 57% year-over-year increase in revenue with notable success in the independent retail channel.

Lowering Guidance

Ms. Elsner updated the Company’s revenue guidance: “We’re pleased with our growth of 42% for Q3 and 49.6% year-to-date. We expect full-year revenue for 2019 to be in the range of $95 to $100 million and to maintain growth rates for 2020 in the 40% to 50% range or until clear regulations are set.” In the last quarterly report, Rich Mohr, Chief Financial Officer said, “Our previously communicated revenue guidance for 2019 of between $120 million and $170 million remains in place.”

Elsner added, “We are prudently investing in the expansion of our production and distribution capacities as planned, ahead of anticipated FDA regulatory clarity that could enable wider adoption of our product portfolio. We remain hopeful that broad political support will help drive quick regulatory resolutions in 2020.”


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