Is Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) the Giant Lurking Under the Surface?

Is Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) the Giant Lurking Under the Surface?


One of our favorite stocks over recent months has been Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF). Shares have responded extremely well as the company has established itself as one of the most well-grounded names in the burgeoning CBD space in the wake of the signing of the 2018 Farm Bill in December. To add further color to the story, the company just announced that Stephen Lermer has joined the Company in the newly formed role of Chief Operating Officer effective January 28, 2019.

According to the release, “Mr. Lermer, who comes to Charlotte’s Web from the pharmaceutical industry, where he held senior leadership and executive positions at DuPont, Johnson & Johnson, Burroughs Wellcome (now GlaxoSmithKline), Rhone Poulenc (now Sanofi), Orion Oyj and Akela Pharma, will become responsible for overseeing all aspects of the Company’s manufacturing, supply chain, research & development, legal and regulatory affairs, quality assurance and control, engineering, cultivation and operations management functions.”

Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) bills itself as a company that develops and distributes hemp-based cannabidiol (CBD) wellness products. Its products include CBD hemp oils, capsules, topicals, and pet products that feature CBD hemp oil extracts.

Charlotte’s Web Holdings, Inc. sells its products online as well as through distributors, and brick and mortar retailers.

The company was formerly known as Stanley Brothers Holdings Inc. and changed its name to Charlotte’s Web Holdings, Inc. in July 2018. The company was incorporated in 2018 and is headquartered in Boulder, Colorado.

According to company materials, “Charlotte’s Web Holdings, Inc. is the market leader in the production and distribution of innovative hemp-based 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 whole plant hemp extracts naturally containing a full spectrum of phytocannabinoids, including CBD, terpenes, flavonoids and other beneficial hemp compounds. Industrial hemp products are non-intoxicating. Charlotte’s Web current product categories include tinctures (liquid products), capsules, topical, as well as pet products. Charlotte’s Web hemp-based whole plant extracts are sold through select distributors, brick and mortar retailers, and online through the Company’s website.”

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As noted above, CWBHF just announced that Stephen Lermer has joined the Company in the newly formed role of Chief Operating Officer effective January 28, 2019.

We’ve witnessed 42% during the past month in terms of shareholder gains in the name. In addition, the stock has benefitted from a jump in recent trading volume to the tune of 54% beyond what we have been seeing over the larger time frame. It pays to take note of this fact with a float in play that’s relatively small — under 14M shares.

“Stephen is a valuable and timely addition to our evolving leadership team,” said Hess Moallem, President and CEO of Charlotte’s Web. “His appointment dramatically expands our domestic and international operational capabilities and brings high level pharmaceutical quality and operating expertise to our organization. I’ve had the privilege of working with Stephen in the past and consider him a trusted advisor. We’ve had the opportunity to apply tried and true formulas for scaling and growth at other organizations providing firsthand experience with Stephen’s operational business sophistication and executional track record.”

Currently trading at a market capitalization of $1.57B, CWBHF has a significant war chest ($102.6M) of cash on the books, which stands against about $14.6M in total current liabilities. One should also note that debt has been growing over recent quarters. CWBHF is pulling in trailing 12-month revenues of $62M. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues growing at 4.3%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $CWBHF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $CWBHF, either long or short, and we have not been compensated for this article.

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