Charlotte's Web Announces Debenture Conversion and $10M Investment from BAT

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Charlotte's Web Holdings Inc., a leading hemp-derived CBD company, has announced a transaction with British American Tobacco (BAT) that includes the conversion of outstanding debentures and a $10 million equity investment. The move is intended to address the company's capital structure and support its near-term operating priorities, including anticipated participation in the CMMI Medicare pilot program.

Why it matters

The deal with BAT provides Charlotte's Web with much-needed financial flexibility as it navigates the evolving CBD market and pursues opportunities in the Medicare space. The conversion of debt to equity and the additional capital investment should help strengthen the company's balance sheet and position it for future growth.

The details

Under the terms of the transaction, BAT will convert its outstanding Charlotte's Web debentures into common shares of the company. Additionally, BAT will make a $10 million equity investment in Charlotte's Web. The company says the moves will address its capital structure and support near-term priorities, including its anticipated participation in the Centers for Medicare & Medicaid Innovation (CMMI) Medicare pilot program for CBD products.

• The transaction was announced on March 30, 2026.

What’s next

Charlotte's Web expects the transaction to close in the coming weeks, subject to customary closing conditions.