Charlotte’s Web Holdings has announced a US$56.8m (~£47.70m) investment from a subsidiary of BAT.
The company has stated that the capital will fund growth initiatives, including its expanding portfolio of botanical wellness products.
The investment has been made via a convertible debenture in the amount of US$56.8m. The debenture is currently convertible into a non-controlling equity stake in Charlotte’s Web of approximately 19.9% and is convertible at BAT’s discretion.
Read more: Sanity Group closes Europe’s largest cannabis investment round
Jacques Tortoroli, CEO of Charlotte’s Web said: “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.”
Kingsley Wheaton, Chief Growth Officer at BAT, added: “The appeal of Charlotte’s Web is clear to us: a wide portfolio of high-quality products, strong brand equity, an extensive retail presence and robust B2C e-commerce platform serving a loyal US consumer base, and a track record of in-depth scientific research.
“Our investment in Charlotte’s Web represents another step for BAT in our exploration beyond tobacco and nicotine, as we continue to build a strong foundation to deliver A Better Tomorrow.”
The investment provides substantial liquidity at an attractive cost of capital for Charlotte’s Web. Upon closing of this investment, Charlotte’s Web will have pro-forma cash and short-term investments of approximately US$65m.
BAT recently made another investment in cannabis through German cannabis company Sanity Group. Sanity closed its $37.6m Series B fundraising round led by BAT, which has now acquired a non-controlling minority stake in the company.
