Charlotte's Web Holdings, Inc. has announced a significant investment agreement with BT DE Investments Inc., a subsidiary of British American Tobacco p.l.c. The agreement, finalized on March 30, 2026, involves the purchase of common shares worth approximately $10 million (C$13.9 million). This investment is crucial for the company as it seeks to bolster its capital at a pivotal stage in its development. The terms of the investment stipulate that the shares will be priced at a minimum of C$0.94 each, or at a discount based on the five-day volume-weighted average price prior to the closing date. The maximum number of shares to be issued under this agreement is 14,760,638. This investment, combined with the conversion of a previously issued convertible debenture, is expected to result in the issuance of around 110 million common shares to BAT, representing a total equity commitment of approximately C$103 million (US$75 million). Furthermore, the agreement includes amendments to the existing convertible debenture, reducing the conversion price from C$2.00 to C$0.94 per share and increasing the conversion cap from 19.9% to 40.8%. These changes are anticipated to enhance BAT's stake in Charlotte's Web, allowing for greater influence over the company's strategic direction. The investment is expected to close around May 28, 2026, marking a significant step forward for Charlotte's Web as it navigates the evolving landscape of the cannabis industry.

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