Charlotte’s Web Holdings Inc (OTCMKTS: CWBHF) is tearing up the charts in recent days as pot stocks heat up across the board. Since trading as low as $2.76 in March Charlotte’s Web has been on fire recently establishing itself as one of the top most traded stocks in small caps as it races up higher.
Pot stocks got a recent boost as credible evidence has arisent that some strains of pot can be effectively used against covid 19. A recent partnership between cannabis research companies Pathway RX and Swysh Inc. and the University of Lethbridge in Alberta, Canada, found that certain Cannabis sativa extracts could be used in treatments to prevent infection with SARS-CoV-2, the virus that causes COVID-19.
Charlotte’s Web Holdings Inc (CSE: CWEB; OTCQX: CWBHF) is the market leader in the production and distribution of innovative hemp-based cannabidiol (“CBD”) wellness products. Charlotte’s Web products are made from high quality and proprietary strains of whole-plant hemp extracts containing a full spectrum of phytocannabinoids, including CBD, terpenes, flavonoids and other valuable hemp compounds. Industrial hemp products have no psychoactive effects. Charlotte’s Web current product categories include tinctures (liquid product), capsules and topical products. Charlotte’s Web hemp-based whole plant extracts are sold through select distributors, brick and mortar retailers and online through the Company’s website.
A recent development that bodes well indead for Charlotte’s web is the bill introducted by Rep. Collin Peterson (D.-Minn.) that would amend the Federal Food, Drug and Cosmetic Act to add CBD to the list of legal dietary supplements and exclude CBD from prohibited foods. These amendments would effectively make CBD foods and dietary supplements fully legal in the U.S. This would be a game changer for CBD in USA.
“This bill will allow FDA to regulate CBD that comes from hemp as a dietary supplement, providing a pathway forward for hemp-derived products,” said House Agriculture Committee Chairman Collin Peterson. @collinpeterson @HouseAgDems https://t.co/a12BgqRuLr via @AgNetWest
— Brian German (@BrianAgNetWest) January 21, 2020
Charlotte’s Web Holdings Inc has been making some important acquisitions lately; in February the Company purchased substantially all the assets related to Stanley Brothers Bio Tec Inc. for total consideration of $0.3 million. The purchased assets consisted of lab equipment, trademarks, and inventories for the Company to establish an internal division for research and development, known as CW Labs R&D Sciences Division.
In March Charlotte’s Web announced the acquisition of Abacus Health in an all-stock transaction valued at $69 million. Upon closing of the transaction Abacus shareholders will ownapproximately 15% of Charlotte’s Web effective outstanding common shares. Abacus is a leading provider of over-the-counter (“OTC”) FDA-registered topical pain relief and skincare products containing CBD hemp extracts. Abacus distributes the industry’s widest portfolio of topical CBD SKUs through more than 7,800 doors including the three largest U.S. pharmacy chains and also reaches 14,500 health care practitioners. Combined, the Companies will represent 43.5% market share of the mass retail drugstore segment and have an aggregate reach into more than one billion points of sale. The acquisition greatly extends Charlotte’s Web’s product offerings and reach and solidifies a dominant position in the U.S. hemp CBD topicals category which is forecasted to become fastest growing and largest CBD segment by 2021.
On May 20 Charlotte’s Web announced it earned U.S. utility patent U.S. 10,653,085, its second U.S. patent for hemp genetics. This patent is for ‘CW1AS1’, a new hemp variety created by company co-founder Joel Stanley and Sr. Director of Cultivation R&D Bear Reel. The patent takes Charlotte’s Web’s premier proprietary genetics to the next generation, and builds a strong wall of protection around it, and the products made from it.
Patents on hemp genetics are a new frontier, and very few patents in this sector have been issued to date. Charlotte’s Web, the world’s largest vertically integrated hemp company, has been at the forefront of this new frontier in hemp patents and will continue to invest in its breeding program and in the science of hemp to ensure a consistent and high-quality supply is available.
