Charlotte's Web plans $10M investment and debt conversion to boost growth in CBD healthcare market

Charlotte's Web announced a proposed transaction with British American Tobacco to convert $54M in debt and raise $10M in new capital, aiming to strengthen its balance sheet and support growth in federally authorized CBD healthcare channels. The company is advancing its medical CBD product portfolio and preparing for the CMS Substance Access Beneficiary Engagement Incentive program, which allows coverage of hemp-derived CBD products. Despite a 9% revenue decline in Q1 2026 due to retail restructuring, Charlotte's Web improved adjusted EBITDA and reduced operating costs. The company expects to initiate a Phase 2 clinical trial for a botanical drug candidate targeting autism-related irritability in mid-2026, positioning itself for long-term growth in regulated pharmaceutical development.