Charlotte's Web Shares Rise on New $56.8 Million Investment from BAT Subsidiary
15 Novembro 2022 - 12:17PM
Dow Jones News
By Adriano Marchese
Charlotte's Web Holdings Inc. shares jumped in early trading
Tuesday after the company said it was receiving a $56.8 million
investment from a subsidiary of British American Tobacco PLC.
At 9:46 a.m. ET, shares were up 8.1% at C$0.94.
The Canadian hemp-derived cannabidiol wellness products company
said British American Tobacco, also known as BAT, made the
investment by way of a convertible debenture which is convertible
into a noncontrolling equity stake in the company of about
19.9%.
Charlotte's Web said that after closing of this investment, it
will have a pro-forma cash and short-term investments of around $65
million, and that the new money provides substantial liquidity at
an attractive cost of capital.
BAT and its affiliates will have the right to nominate one-fifth
of the company's board of directors as long as it controls at least
15% of Charlotte's Web's common shares.
"This investment will provide Charlotte's Web with funding that
we anticipate will help unlock deeper and broader research and
development that is key to our continued innovation, global
footprint, and the advancement of our intellectual property
portfolio," Charlotte's Web Chief Executive Jacques Tortoroli
said.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
November 15, 2022 10:02 ET (15:02 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
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