Charlotte's Web Holdings, Inc. Acquires Option to Purchase Stanley Brothers USAMarch 03, 2021
Charlotte's Web Holdings, Inc. ("Charlotte's Web") (TSX: CWEB) (OTCQX: CWBHF) entered into an Option Purchase Agreement with Stanley Brothers USA Holdings, Inc. ("Stanley Brothers USA"), a privately-held Delaware company, and the shareholders of Stanley Brothers USA to acquire all of the outstanding securities of Stanley Brothers USA.
The Option has a five-year term (extendable for an additional two years) and provides Charlotte's Web the optionality to acquire Stanley Brothers USA on the earlier of three years from the effective date of the Option and federal legalization of cannabis in the United States, or such earlier time as Stanley Brothers USA and Charlotte's Web may agree. Until the Option is exercised, both Charlotte's Web and Stanley Brothers USA will continue to operate as standalone entities in the United States and the companies are able to explore opportunities internationally where cannabis is federally permissible.
Charlotte's Web is the global leader in the cultivation, production and distribution of hemp-derived CBD wellness products. Stanley Brothers USA is a cannabis wellness incubator currently operating in three states (Colorado, California, Florida) with expansion plans underway in eight additional states.
Wildeboer Dellelce LLP acted as counsel to the Special Committee of the Board of Charlotte’s Web with a team of Troy Pocaluyko and Mark Coghlan.