BOULDER, Colo. and TORONTO – Pioneering CBD product manufacturer Charlotte’s Web Holdings, Inc. (TSX:CWEB, OTCQX:CWBHF) announced its annual report for 2019 today in a release on the company’s website. It was good news all around as they reported “organic revenue growth of 36 percent year-over-year to $94.6 million,” as well acquisition of Toronto-based Abacus Health (“Abacus”) (CSE:ABCS, OTCQB: ABAHF), which will add greatly expanded reach for Charlotte’s Web into the CBD-infused topical market.
“With our respective market leadership in CBD ingestible and topical products, the acquisition of Abacus positions Charlotte’s Web as the most developed CBD company across every channel and segment,” said CW Chief Executive Officer Deanie Elsner in the announcement posted to the company website. “As the largest and most established vertically integrated hemp CBD company we aim to lead the evolution of the category.”
“This transaction provides a unique opportunity to our shareholders and employees to participate in the compelling potential of the combined businesses,” Abacus Chief Executive Officer Perry Antelman said in a release on the company website. “Abacus is one of the largest suppliers and distributors in the United States of topical products infused with hemp extract to the F/D/M [Food, Drug, Mass-Merchandising] and healthcare practitioner markets.
“By joining with Charlotte’s Web, we have the opportunity to maximize our growth by leveraging the company’s leading brand, vertical integration, infrastructure, expertise, financial position and capital markets presence, and position the combined company to deliver benefits for our stakeholders over the long-term,” he added.
Charlotte’s Web listed highlights for business in 2019, including, “Record 2019 hemp harvest; 245 percent increase to 2.34 million lbs. biomass, 22 percent potency increase, 10 percent yield increase/acre Estimated 36,000 kg CBD with 33 percent reduced cost/kg, and 52 percent acres earning organic certification.”
The company also reported more than 10,000 “retail doors” selling their products, as well as expanding their pet product line with the introduction of twenty-four new pet product SKUs.
Gross profit was reported at $12.2 million, as well as “$68.6 million cash and $116.9 million working capital at December 31, 2019.”
“We are optimistic about the strength of our DTC business in 2020,” Elsner advised. “However ongoing uncertainties surrounding regulatory progress and timing, as well as growing COVID-19 concerns, tempers our retail growth expectations for 2020. We anticipate Q1-2020 revenue will be in the $20 million range, and forecast 10 percent to 20 percent topline growth for the full year for the Charlotte’s Web business.”
