BOULDER, CO, March 4, 2020 /PRNewswire/ - (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."
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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 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 at www.sedar.com.
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SOURCE Charlotte's Web Holdings, Inc.