Expanding for market dominance through
cultivation, production, distribution and R&D
BOULDER, CO, Aug. 8, 2019 /CNW/ - Charlotte's Web Holdings,
Inc. ("Charlotte's Web" or the "Company") (TSX:CWEB, OTCQX:CWBHF),
the market leader in hemp CBD extract products, announces expansion
plans underway in 2019 including cultivation, production,
distribution and R&D to support its forecasted sales growth.
Most recent expansion initiatives include a building lease signed
on a newly constructed 136,610-square-foot industrial building
located at 700 Tech Court in the Colorado Technology Center (CTC)
in Louisville, Colorado. The new
location enables the Company to prepare for production,
distribution and R&D expansion to meet increasing demand from
the consumer and national retailer channels.
Charlotte's Web will commence a staged build-out of the facility
during Q3-2019 and continuing over a two year period. The staged
buildout of production and distribution capacities align with
product demand growth. This facility will add cumulatively to the
Company's existing locations in and around the Boulder, Colorado area. Along with
distribution and R&D, the large cGMP-grade building will
encompass the Company's new manufacturing operations, substantially
adding to the current capacity of the Company's current 40,000 sq.
ft. footprint. The lease agreement includes further expansion
options into adjacent buildings (to be constructed) as necessary to
accommodate the Company's future growth.
"This is a time of rapid growth and transformation for
Charlotte's Web and these new facilities are necessary to support
the production, warehousing and distribution of our growing product
lines and volumes," said Stephen
Lermer, Chief Operating Officer at Charlotte's Web.
"Production and inventory growth have been dramatic this year
following the Company's record 675,000-pound hemp harvest during
2018, which was more than ten times larger than 2017. Our capacity
build is required to support sales forecasts as multiple national
retailers continue to roll out Charlotte's Web products. As we have
increased acres planted by 187% for the 2019 season, we will make
quick use of the expanded facilities as we initiate operations
early next year."
State-of-the-art production equipment is being developed in a
manner that optimizes efficiencies in all aspects of use. The
Company has commenced the internal engineering phase and
construction is expected to begin in the coming months. The new
cGMP facility will be engineered with the most technologically
advanced and proven extraction technology for the production of the
highest quality products.
"Many of the extraction technologies employed in our sector are
decades old. In our new facility we will be incorporating the
latest in extraction and post-processing refinement technology that
enables differentiated end-products with unique characteristics,"
said Mr. Lermer. "Our expanded R&D focus in this facility will
also lead us to future innovation that will ensure we remain the
leader in production technology. Strategically, Louisville is a prime location for us midway
between our current Boulder and
Denver operations. Additionally,
this gives us access to a wider aggregate region from which we can
source top employee talent. We look forward to contributing to the
growth, economy and families of Louisville and the surrounding communities as
we continue to grow."
In keeping with the Company's dedication to sustainability and
responsible agriculture practices, the environmental impact of the
new facility was a key consideration from inception. The facility
is targeting 30 percent energy cost savings, 35 percent reduction
in potable water use, 20 percent recycled content in building
materials, 20 percent of building materials from regional sources
and 50 percent of construction waste diverted from landfill.
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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-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 website
at www.CharlottesWeb.com. The rate the Company pays for
agricultural products reflects a fair and sustainable rate driving
higher quality yield, encouraging good 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. The Company's 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 Toronto Stock Exchange
(TSX) under the symbol "CWEB" and are quoted in U.S. Dollars in
the United States on the OTCQX
under the symbol "CWBHF". As at July
29, 2019 Charlotte's Web had 44,500,034 Common Shares
outstanding and 132,151.34 Proportional Voting Shares convertible
at 400:1, for an effective equivalent of 97,360,571 Common Shares
outstanding.
Forward-Looking Information
Certain information in this news release 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.
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SOURCE Charlotte''s Web Holdings, Inc.