LOUISVILLE, Colo., Sept. 24,
2024 /PRNewswire/ - (TSX: CWEB) (OTCQX: CWBHF)
Charlotte's Web Holdings, Inc.
("Charlotte's Web" or the
"Company"), the market leader in cannabidiol (CBD) hemp
extract wellness products, stands in firm opposition to the new
regulations in California that
restrict the sale of many ingestible full-spectrum hemp CBD
products that meet federal requirements. As a leader in the hemp
industry, the Company will continue working directly with the
Governor and state legislators to push for changes or new
legislation to preserve consumer access to non-intoxicating
hemp-derived products in California. Charlotte's Web is actively collaborating with
industry group, One Hemp, and
consumer advocacy group, Coalition for Access Now, to support
access to hemp-derived wellness products in California.
"While we fully support efforts to regulate synthetic and
intoxicating products, we strongly oppose the inclusion of
non-intoxicating, natural CBD products within this regulatory
framework," said Bill
Morachnick, Chief Executive Officer of Charlotte's Web. "We believe these
regulations are overreaching and unnecessarily restrict access to
safe, non-intoxicating hemp products by lumping them in with an
entirely different class of products. Other states like
Colorado and Virginia have set shining examples of how to
clean up the market while safeguarding products that consumers
depend upon for their health and wellness."
On September 23, 2024,
California's Office of
Administrative Law approved new emergency regulations filed by the
California Department of Public Health as part of Governor
Gavin Newsom's response to the
failure of Bill AB 2223 to pass through the state legislature. Bill
AB 2223 was designed to regulate intoxicating Delta-8 products;
however, it did not have the merits or nuanced language to pass
through the Senate Appropriations Committee. These new emergency
regulations, effective immediately, circumvent the legislative
process and impose significant limitations on the manufacture,
distribution, and sale of a wide range of hemp-derived CBD products
in California, including
non-intoxicating, natural CBD products used by 5.4 million
Californians.
The Governor's office has stated that the emergency regulations
are necessary to ensure consumer safety and to close gaps in the
oversight of hemp-derived products, particularly those containing
Delta-8 THC. Yet, the overly broad language also impacts the sale,
distribution and package size of non-intoxicating, natural CBD
products like those offered by Charlotte's Web, including products without
detectable THC that are NSF Certified for Sport®.
Consumers who rely on non-intoxicating hemp products will face
limited access as 57% of the cities and counties in the state do
not allow any retail cannabis business.
Jared Stanley, a founding
member of One Hemp, stated,
"We have supported efforts to address bad actors in the hemp
industry, but we were shocked that responsible hemp companies were
included in this overreach. These companies have long advocated for
quality and safety standards backed by science and research. The
Governor's decision will harm the good actors in the industry and
have dire consequences for families and veterans who depend on
these products for their quality of life."
The new regulations will directly impact the sale of many of
Charlotte's Web's ingestible
full-spectrum and broad-spectrum hemp extract CBD products in
California. The impact is limited
to California and is not
anticipated to materially affect the Company's overall 2024 sales
and revenue. Charlotte's Web is
evaluating the longer-term implications, alternatives and actions
for California.
"These products are vital to the well-being of many
consumers, particularly those in vulnerable communities, and they
must be safeguarded," added Morachnick. "To help address
this, we are exploring alternative solutions in light of these
misguided regulations."
Charlotte's Web remains
committed to the highest standards of quality, safety, and
transparency.
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About Charlotte's Web
Holdings, Inc.
Charlotte's Web Holdings, Inc.,
a Certified B Corporation headquartered in Louisville, Colorado, is the market leader in
innovative hemp extract wellness products that include Charlotte's Web whole-plant full-spectrum CBD
extracts as well as broad-spectrum CBD certified NSF for Sport®.
Charlotte's Web is the official
CBD of Major League Baseball©, Angel City Football Club and the
Premier Lacrosse League. Charlotte's Web branded premium quality
products start with proprietary hemp genetics that are North
American farm-grown using organic and regenerative cultivation
practices. The Company's hemp extracts have naturally occurring
botanical compounds including cannabidiol ("CBD"), CBN, CBC, CBG,
terpenes, flavonoids, and other beneficial compounds. Charlotte's Web product categories include CBD
oil tinctures (liquid products) CBD gummies (sleep, calming,
exercise recovery, immunity), CBN gummies, CBD capsules, CBD
topical creams and lotions, as well as CBD pet products for dogs.
Through its substantially vertically integrated business model,
Charlotte's Web maintains
stringent control over product quality and consistency with
analytic testing from soil to shelf for quality assurance.
Charlotte's Web products are
distributed to retailers and health care practitioners throughout
the U.S.A, and online through the
Company's website at www.charlottesweb.com.
© Major League Baseball trademarks and copyrights are used
with permission of Major League Baseball. Visit MLB.com.
Forward-Looking Information
Certain information provided herein constitutes
forward-looking statements or information (collectively,
"forward-looking statements") within the meaning of applicable
securities laws. Forward-looking statements are typically
identified by words such as "may", "will", "should", "could",
"anticipate", "expect", "project", "estimate", "forecast", "plan",
"intend", "target", "believe" and similar words suggesting future
outcomes or statements regarding an outlook. Forward-looking
statements are not guarantees of future performance and readers are
cautioned against placing undue reliance on forward-looking
statements. This press release includes forward-looking
statements. By their nature, these statements involve a
variety of assumptions, known and unknown risks and uncertainties,
and other factors which may cause actual results, levels of
activity, and achievements to differ materially from those
expressed or implied by such statements. The forward-looking
statements contained in this press release are based on certain
assumptions and analysis by management of the Company in light of
its experience and perception of historical trends, current
conditions and expected future development and other factors that
it believes are appropriate and reasonable.
The material factors and assumptions used to develop the
forward-looking statements herein include material risk factors
that could cause actual results to differ materially from the
forward-looking statements including, among others, general
economic and market risks, cyber-security risks and those risks and
uncertainties discussed under the heading "Risk Factors" in the
Company's Annual Report on Form 10-K for the year ending
December 31, 2023, and other risk
factors contained in other filings with the Securities and Exchange
Commission available on www.sec.gov and filings with Canadian
securities regulatory authorities available on www.sedarplus.ca.
The impact of any one risk, uncertainty, or factor on a particular
forward-looking statement is not determinable with certainty as
these are interdependent, and the Company's future course of action
depends on management's assessment of all information available at
the relevant time.
Any forward-looking statement in this press release is based
only on information currently available to the Company and speaks
only as of the date on which it is made. Except as required by
applicable law, the Company assumes no obligation to publicly
update any forward-looking statement, whether as a result of new
information, future events, or otherwise. All forward-looking
statements, whether written or oral, attributable to the Company or
persons acting on the Company's behalf, are expressly qualified in
their entirety by these cautionary statements.
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SOURCE Charlotte's Web
Holdings, Inc.
