Charlotte's Web converts $65M debt to equity and secures $10M investment from BAT to boost operations.

Charlotte's Web Holdings announced a transaction with British American Tobacco's subsidiary, converting approximately $65 million of convertible debenture debt into common shares and securing an additional $10 million equity investment. This move eliminates the company's largest debt, stops further interest accrual, and strengthens liquidity for near-term priorities, including participation in the anticipated CMMI Medicare pilot program. The transaction simplifies Charlotte's Web's capital structure, leaving it debt-free and better positioned for strategic growth. Shareholder approval is expected by May 28, 2026, with the transaction closing shortly after.