Why Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) is Setting Up for a Fresh...

Why Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) is Setting Up for a Fresh Breakout


We continue to watch Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) with special interest. The CBD space has undoubtedly surprised to the upside so far in 2019, mostly on the back of a surprising rate of placement on mainstream retail chain store shelves, such as Macy’sm Rite Aid, Walmart, Kroger’s, Walgreens, and several others. That momentum has fundamentally shifted the curve for forward estimates in the space, and CWBHF is really one of the very few pure-plays, putting the stock on basically everyone’s radar as something like a referendum on the idea of CBD as an explosive growth market.

Helping to further color the story this week, the company announced the results from its 2019 annual general and special meeting of shareholders held on August 20, 2019 in New York. The big points covered included the appointment of MNP LLP as the auditors of the Company to hold office until the close of the next annual meeting of shareholders of the company, the resolution authorizing the amendment of the company’s ‎Articles and Notice of Articles with respect to stakeholder ‎interests and conversion to a benefit company‎, the resolution authorizing the amendment of the company’s advance notice provisions contained in the Articles‎, and the approval and adoption of the employee share purchase plan of the company.

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 the results from its 2019 annual general and special meeting of shareholders held on August 20, 2019 in New York.

We’ve witnessed 19% during the past month in terms of shareholder gains in the stock. What’s more, the company has witnessed a pop in interest, as transaction volume levels have recently pushed just shy of 150% above its longer-run average levels.

According to the company’s release, the total number of votes cast at the meeting was 55,076,745, representing 56.57% of the total number of votes attached to the outstanding voting shares of the Company. It would appear as though nothing was contentious, further suggesting a company in a good spot in terms of harmonious relationships between the board, shareholders, and executive management.

Now commanding a market cap of $756M, CWBHF has a significant war chest ($67.2M) of cash on the books, which is balanced by about $18.3M in total current liabilities. CWBHF is pulling in trailing 12-month revenues of $113.8M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 50.6%. As more color becomes clear on the name, we will review the situation and update our take. 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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