Charlotte's Web Positions Entry Into The US Marijuana Market Through an 8 Million Stock Acquisition

In #finance, leading #hemp-derived #CBD product maker #Charlotte’sWeb positions itself for entry into the #US #marijuana market through an 8 #million #dollar all-#stock #acquisition. The five-year purchase agreement option will allow the #Colorado company to take over Stanley #Brothers #USA #Holdings, a privately-held, #Delaware-based, #multistate cannabis wellness incubator that founded Charlotte’s Web back in 2012. Under the deal, the purchase could be finalized between three and seven years, depending on the federal legalization of marijuana or a shift in stock exchange policies. The total acquisition price could be modified, based on factors such as revenue and #EBITDA, at the time of the transaction. Stanley Brothers specializes in full-spectrum cannabis edibles and tinctures under the Recreate brand name, with THC levels lower than many marijuana products, but higher than the legal allowable limit for hemp. They currently operate in #California, #Colorado and #Florida, with plans for expansion to 8 additional states. The decision by Charlotte’s Web to bet on marijuana comes as no surprise, as the company has faced difficulties resulting from #pandemic-related store closures, a patent lawsuit over its namesake strain, and increasing #CBD market competition. According to CEO Deanie Elsner, the Stanley Brothers provide an opportune alignment for #future #growth strategy considering the shared heritage of the two companies. Both #businesses will continue to run as #independent entities prior to the closing of the transaction.

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