BOULDER, CO, March 4, 2020 /CNW/ - (TSX: CWEB; OTCQX: CWBHF) – Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company") the market leader in hemp-derived extract products, has completed the audit of its 2019 hemp harvest, the sole source of the Company's full spectrum extracts which are high in naturally occurring cannabidiol ("CBD").
The results of the 2019 harvest versus the 2018 are as follows:
245% increase in total dried biomass to 2.34 million lbs. 22% increase in CBD potency 10% increase in yield per acre Estimated 36 thousand kg CBD harvested, with a 33% reduction per milligram of cost
"We are very pleased with the results of the 2019 harvest, achieving yield and potency levels that surpassed our expectations. This reflects the tremendous expertise we have gained in hemp cultivation over the last six years," said Deanie Elsner, CEO of Charlotte's Web. "More than half of our harvest was certified organic in 2019 with the remaining acres in transition. We are well on our way to becoming one of the largest providers of certified organic hemp CBD extract in the country."
Charlotte's Web, the world's most trusted hemp extract™, is 100% American-grown and is cultivated across three states (Colorado, Oregon and Kentucky) to mitigate crop risk. With its vertically integrated model, Charlotte's Web controls its supply chain to optimize product quality, traceability, and cost, bringing its high-quality hemp in at lower than comparable spot market prices. Efficiency and quality gains from accumulated proprietary knowledge represents a unique competitive advantage for the Company.
The Horticulture Division at Charlotte's Web excels in the development of new hemp genetics with superior cannabinoid expression and increasingly efficacious full-spectrum extract profiles. The 2019 growing season saw two varieties from the Company's breeding program go into full production - "Lindorea" and "Kirsche." Developed by Charlotte's Web Senior Director of Cultivation Research & Development, Bear Reel, both exceeded expectations for CBD potency, low THC, and superior yield. Patents have been filed for both genetics, adding valuable new intellectual property to the Company.
"Our genetics resulted in the highest biomass yield per acre in our history, with many acres producing well above 3,000 pounds of biomass (with fiber removed)" said Jared Stanley, Company Co-Founder and Chief Cultivation Officer. "Cultivating, harvesting and drying at scale for full spectrum extract products is an area where we've learned to excel, and our world-class horticulture division continues to cultivate new varieties of hemp that are cannabinoid, flavonoid and terpene rich."
The Company stores its hemp inventory for extraction and manufacturing over time, maintaining low-cost inventory levels that ensure consistent production to support a minimum two years of projected sales. The 2019 harvest is expected to support growth into 2022, guaranteeing consistency in product availability and efficacy, critical to customers that rely on Charlotte's Web™ products daily, as well as the food, drug and mass (F/D/M) retail channel that requires shelf-availability certainty.
The (F/D/M) retail channel has been awaiting regulatory certainty from the U.S. Food and Drug Administration (FDA) before broadly adopting ingestible hemp products. Charlotte's Web was heartened by FDA Commissioner Dr. Stephen Hahn's recent comments at a meeting of the National Association of State Departments of Agriculture (NASDA) where he discussed the FDA's efforts to support consumer interest in CBD with data for making more informed decisions.
"So, we know one thing from the American people: they're using CBD products," Hahn said. "We're not going to be able to say, 'you can't use these products,'" Hahn said. "Even if we did, it's a fool's game to try to even approach that.". But what do we need to do? We need to fill the information gaps."
"Regulatory certainty would bode well for Charlotte's Web, consumers and American farming communities," Ms. Elsner said, "and Charlotte's Web is pleased to assist the FDA in its efforts."
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. Founded by the Stanley Brothers, 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. 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.
Forward-Looking Information Certain information in this news release constitutes forward-looking statements and forward-looking information (collectively, "forward-looking information"). Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events. Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the public documents of the Company available atwww.sedar.com.
SOURCE Charlotte's Web Holdings, Inc.
For further information: Media Contact: Adam Schiff, CultureSpeed Communications, (917) 701-7800, [email protected]; Investor Contact: Cory Pala, Director of Investor Relations, (416) 594-3849, [email protected]
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