Charlotte’s Web Reports 2025 Fourth Quarter and Full Year Financial Results

Anticipated CMMI Medicare Pilot Program Participation, Regulatory Momentum, and Cost Structure Improvements Position Company for Growth and Pathway to Profitability

LOUISVILLE, Colo., March 31, 2026 /PRNewswire/ – (TSX: CWEB) (OTC: CWBHF), Charlotte’s Web Holdings, Inc. („Charlotte’s Web“ or the „Company“), a botanical wellness innovation company and the market leader in cannabidiol (CBD) hemp extract wellness products, today announced results for the quarter and year ended December 31, 2025. All amounts are expressed in U.S. dollars, unless otherwise stated.

SUBSEQUENT MATERIAL EVENTS

BAT Transaction
Prior to this earnings release, Charlotte’s Web announced a transaction (the „Transaction“) with BT DE Investments Inc. („BAT“), a subsidiary of British American Tobacco p.l.c. (LSE: BATS and NYSE: BTI), comprised of two components: (i) the amendment and conversion of BAT’s outstanding C$75.3 million (approximately US$54 million at current exchange rates for estimation purposes) convertible debenture, in addition to all accrued interest (C$14.2 million, or approximately US$10 million); and (ii) a concurrent additional equity investment by BAT of US$10 million (approximately C$13.9 million) by way of a private placement. Following completion of the Transaction, BAT will hold approximately 40% of the Company’s then-issued and outstanding common shares on a non-diluted basis.

The debenture conversion eliminates Charlotte’s Web’s largest outstanding balance sheet liability and significantly strengthens shareholders‘ equity, while removing approximately $3 million in annual interest costs. The net proceeds of the cash will be used to support the Company’s participation in the anticipated Centers for Medicare & Medicaid Innovations (CMMI) Medicare pilot program and other permitted purposes if the CMMI program does not proceed.