Charlotte's Web Holdings Inc

TSX:CWEB

BAT deal: Charlotte's Web said it struck a transaction with British American Tobacco that converts BAT's $55 million convertible debenture plus about $10 million of accrued interest into shares and adds a new $10 million equity investment.

Balance sheet: Management said the deal eliminates the company's largest debt burden, avoids about $3 million of annual interest for the next 3.5 years, and removes the risk of more than $12 million of future interest through maturity.

Medicare pilot: The company highlighted a new CMS-backed CBD pilot for seniors and said its core full-spectrum products qualify under the program, but it expects revenue to build gradually rather than meaningfully in the near term.

Regulatory backdrop: Management said federal hemp policy remains unsettled, with both a potential hemp ban and separate reform efforts in play, but argued the CMS guidance and legislative momentum point toward a more favorable framework.

Quarterly growth: Q4 revenue rose 15.8% sequentially and 4.7% year over year, helped by stronger direct-to-consumer sales, improved product mix, and a B2B restructuring that removed weaker accounts.

Cost discipline: Full-year SG&A fell 21.2% and operating loss improved more than 36%, showing the company is still tightening costs while preparing for new launch spending tied to Medicare.

Strategic pipeline: Management also emphasized DeFloria, its cannabis-derived drug program with BAT and Aragen, saying Phase II work is expected to start midyear subject to development and resource readiness.