Exclusive Agreement to support Chinese interest
in hemp extracts
DENVER,
Colo. and HONG KONG,
June 16,
2022 /CNW/ - (TSX: CWEB) (OTCQX: CWBHF) Charlotte's Web Holdings, Inc. ("Charlotte's Web," "CW" or the "Company"),
America's market leader in full-spectrum hemp extract CBD products,
has signed an exclusive distribution agreement (the "Agreement")
with Energy Hemp Biotechnology Ltd., ("Energy Hemp") in
Hong Kong, China.
Under the terms of the Agreement, Energy Hemp will have
exclusive distribution rights for Charlotte's Web line of THC-free
broad-spectrum CBD products within the Greater China territory with initial
availability planned for Hong
Kong, Taiwan and
Macao. Product SKUs will include
gummies, capsules and oil tinctures, with plans to extend offerings
over time. A flagship Charlotte's
Web retail store, owned and operated by Energy Hemp is planned for
Hong Kong in 2023.
China has a large aging
population and CBD hemp extracts are often sought to help alleviate
some of the discomforts of old age. In addition, hemp extract
products may help support sleep and daily stress among the younger
generations of Chinese that are managing high-pressure lives. In
the coming months, Energy Hemp plans to launch a direct-to-consumer
e-commerce web store to service the territories of Hong Kong, Taiwan and Macau, providing much of the Chinese
population with access to the wellness benefits of Charlotte's Web market-leading products.
"We have been developing this opportunity with Energy Hemp for
some time and are proud to announce this new partnership to launch
into Greater China," said
Jacques Tortoroli, Chief Executive
Officer of Charlotte's Web. "This
agreement is another significant example of Charlotte's Web's international expansion
through an asset-light model with strategic local and regional
partners - particularly in Greater
China where hemp has been a vital part of its ancient
cultural and medicinal history. It's critical to have a trusted
regional partner that can bridge the plant's legacy with
Charlotte's Web's commitment to
innovation and quality for consumers, partners, and the Chinese
business environment. I look forward to a long-term relationship,
including working together on efforts to support hemp policy reform
in mainland China to enable market
access there."
Energy Hemp management is the same team that pioneered
China's cigar and luxury goods
market with Davidoff brand of Switzerland; one of the most welcomed cigar
brands in China. Energy Hemp management includes executives
from stem cell, neuron cells R&D and products; skincare,
supplement, food R&D and products; FMCG market channel.
"We are always seeking category brand leaders to introduce to
the Chinese markets and are excited to bring Charlotte's Web CBD wellness to the Chinese
populations," said Eric SZE Li Ping, president of Energy Hemp
Biotechnology Ltd. "We have a strong track record of introducing
and establishing markets in China
for leading international brands. As the leading global CBD brand,
Charlotte's Web is an excellent
fit with its extract reputation and consumer trust."
In addition to the pending eCommerce web store presence, plans
are underway for future retail presence for consumers in
Hong Kong, Taiwan and Macau.
About Energy Hemp Biotechnology
Ltd.
Energy Hemp Biotechnology Limited is a Hong Kong-based private limited company
established in 2016. The company was one of the earliest hemp
platforms in Asia to focus on the
development and application of hemp products. Its product
line covers hemp-based dietary food, skincare, beverages, leisure
products and other aspects of life. The company is the agency for a
variety of hemp products from the United
States of America and also has self-developed product
series, such as health series, skincare series, and beverage
series. Energy Hemp is also a member of the China Narcotic
Drug Association, a State-level policy-making entity, guiding the
future of the hemp market in China.
Energy Hemp Biotechnology Limited is the only designated
Asia partner of Charlotte's Web.
About Charlotte's Web Holdings, Inc.
Charlotte's Web Holdings, Inc.,
a Certified B Corporation headquartered in Denver, is the market leader in innovative
hemp extract wellness products under a family of brands which
includes Charlotte's Web™, CBD
Medic™, CBD Clinic™, and Harmony Hemp™. Charlotte's Web branded premium quality
products start with proprietary hemp genetics that are 100-percent
American farm -grown using organic and regenerative cultivation
practices. The Company's hemp extracts have naturally
occurring botanical compounds including cannabidiol ("CBD"), CBC,
CBG, terpenes, flavonoids, and other beneficial
compounds. The Company's CW Labs R&D division advances
hemp science at two centers of excellence in Louisville, Colorado, and the Hauptmann
Woodward Research Institute at the University
at Buffalo, part of the State
University of New York (SUNY)
network. Web product categories include full-spectrum hemp CBD oil
tinctures (liquid products), CBD gummies (sleep, stress,
exercise recovery), CBD capsules, CBD topical creams and lotions,
as well as CBD pet products for dogs. Through its vertically
integrated business model, Charlotte's Web maintains stringent control
over product quality and consistency with 20+ product lot testing
for quality assurance. Charlotte's
Web products are distributed to more than 15,000 retail, over 8,000
health care practitioners, and online through the Company's website
at www.CharlottesWeb.com. Charlotte's Web's mission is
"To unleash the healing powers of botanicals with compassion and
science, benefitting the planet and all who live upon it."
Forward-Looking
Information
Certain information in this news release constitutes
forward-looking statements and forward-looking information within
the meaning of applicable securities laws (collectively,
"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. Specifically, this news release
contains forward-looking information relating to, among others: the
future of Charlotte's Web and the
impacts of management changes.
Statements containing forward-looking information are not
historical facts but instead represent management's current
expectations, estimates and projections regarding the future of
our business, future plans, strategies, projections, anticipated
events and trends, the economy and other future conditions.
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. The
material factors and assumptions used to develop the
forward-looking information herein include, but are not limited to,
the following: the impact of the COVID-19 pandemic; the regulatory
climate in which the Company currently operates and may in the
future operate; consumer interest in CBD; successful sales of the
Company's products; and the success of sales and marketing
activities. Important factors that could cause actual results and
financial condition to differ materially from those indicated in
the forward-looking information include, among others, the factors
discussed throughout the "Risk Factors" section of the Company's
most recently filed Annual Report on Form 10-K for the year ended
December 31, 2021 available on
www.SEDAR.com and www.sec.gov , and other risk factors contained in
other filings with the Securities and Exchange Commission available
on www.sec.gov and filings with Canadian securities regulatory
authorities available on www.sedar.com. Except as
required by applicable securities laws, the Company undertakes no
obligation to publicly update any forward-looking information,
whether written or oral, that may be made from time to time,
whether as a result of new information, future developments or
otherwise.
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SOURCE Charlotte's Web
Holdings, Inc.