Charlotte’s Web Closes C$77,625,000 Underwritten Public Offering
BOULDER, Colo., June 18, 2020 /CNW/ – Charlotte’s Web Holdings, Inc. (“Charlotte’s Web”, or the “Company”) (TSX: CWEB) (OTCQX: CWBHF), the market leader in hemp CBD extract products, announces today that it has closed its previously announced underwritten public offering for aggregate gross proceeds to the Company of C$77,625,000 (the “Offering”). A total of 11,500,000 units of the Company (the “Units”), at a price of C$6.75 per Unit (the “Offering Price”) were sold pursuant to the Offering, including the full exercise of the over-allotment option by the Underwriters (as defined below).
The Offering was led by Canaccord Genuity Corp., together with a syndicate of underwriters including Cormark Securities Inc., Eight Capital and PI Financial Corp. (collectively, the “Underwriters”).
Each Unit was comprised of one common share of the Company (a “Common Share”) and one half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will be exercisable to acquire one common share (a “Warrant Share”) for a period of 2 years following the closing date of the Offering at an exercise price of C$8.50 per Warrant Share, subject to adjustment in certain events.
Net proceeds from the Offering are expected to be used primarily to fund the Company’s business development and for general working capital purposes.
It is anticipated that, subject to satisfaction of the Toronto Stock Exchange (“TSX”) listing requirements, the Warrants will begin trading on the TSX under the symbol “CWEB.WR” at market open on June 18, 2020.
The Units were offered in each of the provinces of Canada, other than Québec, pursuant to the Company’s base shelf prospectus dated April 8, 2019 (the “Base Prospectus”) and were also offered by way of private placement in the United States to “qualified institutional buyers”. The terms of the Offering are described in a prospectus supplement (the “Supplement”) dated June 16, 2020.
Copies of the Supplement and accompanying Base Prospectus may be obtained on SEDAR at www.sedar.com and from Canaccord Genuity Corp., 161 Bay Street, Suite 3000, Toronto, ON M5J 2S1. The Base Prospectus and the Supplement contain important detailed information about the Company and the Offering. Prospective investors should read the Supplement and accompanying Base Prospectus and the other documents the Company has filed on SEDAR at www.sedar.com before making an investment decision.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The common shares have not been and nor will they be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws. Accordingly, the common shares may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Charlotte’s Web in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Charlotte’s Web Holdings, Inc.
Charlotte’s Web Holdings, Inc. is the market leader in the production and distribution of innovative hemp-derived cannabidiol (“CBD”) wellness products. The Company was founded by the Stanley Brothers on a mission to unleash the power of botanicals through compassion and science to benefit the planet and all who live upon it. The Company’s premium quality products start with proprietary hemp genetics that are responsibly manufactured into hemp-derived CBD extracts naturally containing a full spectrum of phytocannabinoids, including CBD, terpenes, flavonoids and other beneficial hemp compounds. Charlotte’s Web product categories include CBD oil tinctures (liquid products), CBD capsules, CBD topicals, as well as CBD pet products. The Company is a leader in over-the-counter topical products combining active pharmaceutical ingredients with hemp extract including CBD CLINICTM, marketed to the professional practitioner market, and CBDMEDICTM, marketed to the consumer market. Charlotte’s Web hemp-derived CBD extracts are sold through select distributors, brick and mortar retailers, and online through the Company’s ADA compliant website at www.CharlottesWeb.com.
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