Recent news coverage includes announcements related to the company's scientific advisory board and product innovation, alongside broader market news not directly related to Charlotte's Web.

• Charlotte's Web launched a scientific advisory board to advance its medical strategy as of September 2025, indicating a focus on clinical and scientific validation of its products [N1].
• The company has seen growth with new product innovations, including the launch of functional mushroom gummies, expanding its botanical wellness offerings [N1].
• Recent news items primarily cover broader market and unrelated company developments, with limited direct coverage of Charlotte's Web [N1].

Charlotte's Web benefits from its leadership position in the U.S. hemp-derived CBD market and its expanding product portfolio including functional mushroom gummies. Its proprietary hemp genetics and vertically integrated supply chain provide product quality and innovation advantages. The company's R&D efforts and joint ventures targeting FDA-approved botanical drugs could open new therapeutic markets. Its benefit company status aligns with growing consumer interest in socially responsible businesses. Strong liquidity ratios as of mid-2026 provide operational flexibility.

The company operates in a highly regulated and evolving market with legal uncertainties around hemp-derived CBD products. As a benefit company, balancing shareholder value with public benefit objectives may create conflicts and legal risks. The company reported a net loss and negative EPS in the latest quarter, indicating ongoing profitability challenges. Dependence on contract farming and third-party manufacturing may pose supply chain risks. The termination of the MLB partnership removed a promotional channel. Market competition and regulatory changes could impact growth and margins.

Charlotte's Web's moat is based on its proprietary hemp genetics, vertically integrated supply chain with contract farming across multiple regions, and a cGMP-compliant production facility enabling quality control and innovation. Its established brand portfolio and focus on botanical wellness products, including expansion into functional mushrooms, support differentiation. The company's status as a benefit company and its commitment to social and environmental goals may enhance stakeholder loyalty. Strategic partnerships and joint ventures in clinical development further contribute to its competitive positioning.

• Regulatory and Legal Risks: The hemp-derived CBD market is subject to complex and evolving regulations in the U.S. and Canada. Changes in laws or enforcement could adversely affect operations and product offerings.
• Benefit Company Legal and Fiduciary Risks: As a benefit company, Charlotte's Web must balance shareholder interests with public benefit objectives, which may lead to legal challenges and impact financial performance.
• Profitability and Financial Risks: The company reported net losses and negative earnings per share, indicating challenges in achieving profitability and sustainable cash flow.
• Supply Chain and Manufacturing Risks: Reliance on contract farming and third-party manufacturers may expose the company to supply disruptions, quality control issues, and cost pressures.
• Market and Competitive Risks: The wellness and CBD markets are competitive and rapidly evolving, with risks from new entrants, changing consumer preferences, and alternative products.

• Charlotte's Web Holdings, Inc. is a benefit company incorporated under British Columbia law and headquartered in Louisville, Colorado.
• The company is a market leader in the U.S. for hemp extract and botanical-based wellness products, including brands such as Charlotte's Web™, CBD Medic™, and CBD Clinic™.
• Products include hemp extract oil tinctures, gummies, capsules, topical creams and lotions, functional mushroom gummies, and pet products.
• The company operates a cGMP-compliant production facility called the LOFT in Louisville, Colorado, where it conducts manufacturing, quality control, distribution, and R&D.
• Charlotte's Web grows proprietary hemp through contract farming in Arizona, Colorado, Kentucky, New Mexico, and Canada, with Canadian-grown hemp used exclusively for the Canadian market.
• The company does not produce or sell medicinal or recreational marijuana or high-THC cannabis products and has no near-term plans to do so.
• Charlotte's Web has an internal R&D division called CW Labs focused on hemp-derived compounds and clinical trials.
• The company formed a joint entity, DeFloria, Inc., with AJNA BioSciences and a BAT subsidiary to pursue FDA approval for a botanical drug targeting a neurological condition.
• Charlotte's Web entered into a convertible debenture agreement with BT DE Investments, a BAT subsidiary, for approximately $56.8 million USD convertible into 19.9% ownership at a C$2.00 conversion price.
• The company had an exclusive strategic partnership with Major League Baseball (MLB) which was terminated in 2025, waiving an $18 million remaining rights fee.
• Charlotte's Web launched a functional mushroom gummy product line in September 2024, expanding beyond hemp-based products.
• The company is a public benefit company with a stated public benefit to promote healthier lives, stronger communities, and a more bountiful planet through natural plant-based products.
• As of June 30, 2026, the company had cash and equivalents of $13.988 million USD and current assets of $34.602 million USD against current liabilities of $8.256 million USD, resulting in a current ratio of 4.19 and a cash ratio of 1.69.
• The company reported a net loss of $4.127 million USD and basic and diluted EPS of -$0.02 for the quarter ended June 30, 2026.
• The company’s common shares are listed on the Toronto Stock Exchange under the symbol CWEB and quoted OTCQB in the U.S. under CWBHF.
• Recent news coverage includes a 2025 announcement of launching a scientific advisory board to advance medical strategy and growth with new innovations in 2026.
• The company’s risk factors as disclosed in the 10-K and 10-Q filings include balancing shareholder and public benefit interests as a benefit company, and legal uncertainties related to this status.