Charlotte’s Web Preparing to Enter Marijuana & THC Market
- CBD giant Charlotte’s Web is preparing itself for an entrance into the marijuana and THC market after agreeing to purchase a marijuana company started by its founders.
- The Boulder, Colorado-based CBD company has said that the purchase agreement option is for five years and worth $8 million.
- If and when marijuana is legalized on a nationwide level, Charlotte’s Web will assume control of the company, with a final price TBD based on revenue and EBITDA figures.
The CBD giant Charlotte’s Web (CWBHF) is getting itself prepared to walk into the marijuana and THC industry after agreeing to purchase a marijuana company started by its founders, Stanley Brothers USA Holdings Inc.
Two co-founders of Charlotte’s Web, Jared and Joel Stanley, are resigning as members of Charlotte’s Web board of directors to take on leadership with the Stanley Brothers USA. They will help oversee execution of the business with aligned values, business practices, and vision.
The company based in Boulder, Colorado, stated that the purchase agreement option is for five years and is worth $8 million. The deal put in place will allow for Charlotte’s Web to assume control of the marijuana business once the United States allows for the nationwide legalization of marijuana. That total price will be determined based on the revenue and EBITDA figures.
CEO of Charlotte’s Web, Deanie Elsner, claims that the company pursued the deal with the clues that signaled a federal mairjuana reform is on the horizon.
“Consumer attitudes, market trends, and laws surrounding cannabis and its role within the wellness category continue to trend positively,” Elsner said.
If and when the time comes for federal marijuana reform, and we witness a nationwide legalization of adult use recreational, you can expect Charlotte’s Web to be a big player in the THC game. As a company who has been dominating the hemp industry with their superior CBD products for the past several years, they should have no issue transitioning to the “high” side of the market.
According to a poll late last year, roughly 68 percent of Americans are in support of marijuana legalization; the highest percentage ever recorded. As long as this number continues to grow, there will come a time when the federal government must address it.