Shares of Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) have finally begun to surge higher once again as a number of key catalysts come together to stoke the flames of this interesting CBD-focused play. The stock is up as much as 65% in less than a month. As far as we see it, both the CBD context and company specific variables have contributed to the rise. In terms of sector-wide forces, the “The Cannabidiol and Marijuana Research Expansion Act” introduced last month deserves some credit.
To make matters more interesting, the company just announced final hemp planting for its 2019 growing season. According to the release, “In order to meet growing demand from consumer and retail channel partners, total acres planted for 2019 has been increased to 862, an 187% increase from 300 acres planted in 2018. In 2016, 2017 and 2018, the Company produced 41,000 lbs., 63,000 lbs. and 675,000 lbs., respectively, of dried hemp biomass.”
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 final hemp planting for its 2019 growing season, with a major increase in overall capacity.
We’ve witnessed 31% during the past month in terms of shareholder gains in the company. In addition, the name has witnessed a pop in interest, as transaction volume levels have recently pushed 92% beyond its prior sustained average level.
“Interest and demand for our products has been exceptional and growing rapidly. Our 2019 planting strategy ensures we will have the required raw materials to deliver on production targets for Charlotte’s Web products through 2020 and into 2021,” stated Deanie Elsner, CEO of Charlotte’s Web. “Our leading CBD hemp varieties under cultivation today are the foundation of our 2020 production plan. Tens of thousands of Americans have come to rely on Charlotte’s Web products daily making it essential that our products are always available, efficacious and consistent day-to-day, bottle-to-bottle, year-to-year.”
Earning a current market cap value of $726M, CWBHF has a significant war chest ($92.3M) of cash on the books, which must be weighed relative to about $20.7M 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 $102.6M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 74.2%. This may be a very interesting story and we will look forward to updating it again soon. 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.