Charlotte's Web Celebrates Passing of the 2018 Farm Bill as a Monumental Win for America
BOULDER, Colorado, December 21, 2018
BOULDER, Colorado, December 21, 2018 /PRNewswire/ --
CBD Market Leader will Materially Benefit from Hemp's Removal from Controlled Substances Act
Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company") (CSE: CWEB; OTCQX: CWBHF), the market leader in whole-plant hemp extract products with naturally occurring cannabidiol ("CBD"), reports material improvements in its business outlook following the passing of the 2018 Farm Bill (the "Farm Bill"). Under the new Farm Bill, hemp is permanently removed from the Controlled Substances Act (CSA) and out of the jurisdiction of the Drug Enforcement Administration (DEA). Hemp becomes an agricultural commodity governed by the U.S. Department of Agriculture ("USDA").
"The passing of the Farm Bill is transformational for the industry allowing for the national cultivation, production, distribution and marketing of hemp-derived products in the United States," stated Hess Moallem, President and CEO of Charlotte's Web. "The Farm Bill provides the added legal clarity necessary to expand our distribution reach. Hemp's removal from the CSA has been a core legal requirement for many national retailers wanting to carry whole-plant hemp extracts. Removing the social stigma linked with being a "controlled substance" and having the ability to attain organic certification under the USDA will help to grow consumer acceptance. Further, Charlotte's Web can now pursue relationships with federally regulated institutions such as banks, credit card companies, e-commerce marketplaces and advertising platforms in ways not previously accessible."
The revised legal classification is partly the result of extensive lobbying efforts by hemp farmers, industry, special interest groups, and health and wellness companies, including Charlotte's Web. The Stanley Brothers who founded Charlotte's Web played an instrumental role in generating worldwide awareness of the benefits of hemp and were vocal proponents for its permanent legalization at the federal level. These efforts were supported by increased evidence that whole-plant hemp extract with naturally occurring CBD presents no public health risk or abuse potential, as confirmed by the World Health Organization.
Joel Stanley, Chairman and Co-founder of Charlotte's Web stated, "We believe today is a win for the American farmers, economy, research institutions and the general population who can benefit from the many uses of the hemp plant. As early pioneers in the hemp dietary supplements category our mission was to demonstrate the legitimacy and viability of industrial hemp. We had a lot of help along the way and want to thank our fearless hemp community who used their collective voice and power to embolden their representatives to see it though. A most special thanks to Senate Majority Leader McConnell for his unwavering resolve on this issue."
Hemp and marijuana plants are both categorized as the same plant genus and species (Cannabis sativa), but the two plants are legally distinct and regulated by different laws in the United States. By definition, hemp contains less than 0.3% on a dry weight basis of the psychoactive constituent tetrahydrocannabinol delta-9 (THC) and hence produces no intoxicating effect when consumed. Marijuana and marijuana-derived products remain regulated under the CSA.
The United States Food and Drug Administration (FDA) continues to exercise jurisdiction over the regulation of ingestible and topical hemp products including associated health claims. Charlotte's Web maintains the strictest compliance for best practices and self-regulation, giving confidence to both consumers and law enforcement that Charlotte's Web hemp-based products adhere to the highest standards. Charlotte's Web products are manufactured to meet current Good Manufacturing Practices.
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About Charlotte's Web Holdings, Inc.
Charlotte's Web Holdings, Inc. is the market leader in the production and distribution of innovative hemp-based 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 whole plant hemp extracts naturally containing a full spectrum of phytocannabinoids, including CBD, terpenes, flavonoids and other beneficial hemp compounds. Industrial hemp products are non-intoxicating. Charlotte's Web product categories include tinctures (liquid products), capsules, topical, as well as pet 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 at www.cwhemp.com . The rate the Company pays for agricultural products reflects a fair and sustainable rate driving higher quality yield, encouraging food farming practices, and supporting U.S. farming communities.
Charlotte's Web is a socially conscious company and is committed to using business as a force for good and a catalyst for innovation. The Company weighs sound business decisions with consideration for how its efforts affect its employees, customers, the environment, and the communities where its employees live and where it does business, while maximizing profits and strengthening its brands. Management believes that socially oriented actions have a positive impact on the Company, its employees and its shareholders. Charlotte's Web donates a portion of its pre-tax earnings to charitable organizations.
Shares of Charlotte's Web trade on the Canadian Securities Exchange under the symbol "CWEB" and in the United States on the OTCQX under the symbol "CWBHF".
Certain information in this news release, including statements relating to the closing of second tranche of the Private Placement, constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain 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 at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.