About Charlotte’s Web
Charlotte’s Web, a hemp retail supplier established in 2015 by the Stanley Brothers, following 2014’s United States Agricultural Act legalizing the industrial manufacturing and production of hemp products.
Charlotte’s Web specializes in a wide range of hemp-based products, often referred to as CBD products, marketed for the low psychoactive content in the hemp plant as well as the naturally therapeutic characteristics of hemp ingestion.
Some of the products available for consumption from Charlotte’s Web include: CBD oils (which can be consumed topically or sublingually), capsules containing CBD product, hemp creams, hemp balms, isolates and extracts, and gummies. Charlotte’s Web also offers a variety of hemp-based animal chews and extracts.
Many of the products available for purchase include colorful packaging and strategic marketing language with words such as “natural” placed on many of the products. The animal hemp products, in particular, contain labeling such as “cognition” and “calming” to indicate the potential effect the product will have upon delivery to an animal, therefore allowing consumers to naturally remedy ailments for both human and animal (generally marketed toward canines).
The variety of products and large manufacturing capacity has poised Charlotte’s Web into a position of market growth and stability. With nearly 700,000 lbs. of hemp produced in 2018 and more than 7000 retail locations, Charlotte’s Web managed to net around $70 million dollars in revenue. In addition to millions of dollars in revenue, Charlotte’s Web’s stock price has risen more than 80%, according to the Toronto Stock Exchange from September 2018 to July 2019.
Formerly Publicly Traded Through the Canadian Securities Exchange
Charlotte’s Web was formerly traded publicly through the Canadian Securities Exchange, a market exchange platform that is commonly utilized by relatively small capital companies. The Canadian Securities Exchange is praised by participating companies for their easier regulatory reporting and relatively low amount of obstacles for entering in the exchange.
However, Charlotte’s Web’s uplisting into the Toronto Stock Exchange marks substantial recognition for the company’s growth. Uplisting is the practice of entering the market exchange of a larger capital market where members receive greater exposure, but often under tighter regulatory restrictions.
Other market leaders in the cbd space have already experienced significant growth and are also poised to take advantage of the bullish hemp and CBD market, projected to grow to over $20 billion in just a few short years. This prospect has left both private and institutional investors salivating at the prospect of a literal 20th-century gold rush. Few opportunities have garnered such attention since the dot com boom.
The Toronto Stock Exchange
The Toronto Stock Exchange, commonly referred to as TSX, is amongst the ten largest stock exchanges worldwide by market capitalization for its traded stocks. Even more, the Toronto Stock Exchange is one of the strongest market exchanges in the Americas, where the majority of hemp and cannabis legalization legislation has taken place in recent years, positioning Charlotte’s Web for increased exposure.
What This Means for Charlotte’s Web
More specifically, by uplisting to the Toronto Stock Exchange from the Canadian Securities Exchange, Charlotte’s Web will likely increase exposure to a larger audience in a larger capital market. The added exposure and increased capital will provide greater liquidity for Charlotte’s Web stock as well as increase the availability of international investors and even more capital.
Charlotte’s Web has been considered a market leader in the manufacturing and production of hemp products centered on health and wellness. And since the company’s creation, the founders, the Stanley Brothers, have continued to innovate how they manufacture and produce their hemp. Charlotte’s Web, while not currently certified organic, does implement organic practices, ensuring that all pesticides and herbicides are 100% organically derived. Charlotte’s Web’s vertically integrated business model claims to ensure high-quality processes setup at all stages of production.
Charlotte’s Web’s recent uplisting is one symbol of the company’s growth but not the only indicator of future success. Charlotte’s Web has a developed and dedicated website with the capabilities of processing millions of dollars’ worth of sales and deliveries; to this end, Charlotte’s Web claims that 50% of annual sales are conducted directly through their website to consumers. Other than online, Charlotte’s Web distributes to thousands of dedicated retailers and a few national chain stores. Future plans for distribution are focused around increasing Charlotte’s Web network of national retailers; increasing its flow of products through established grocery and retail companies throughout the United States and intends to give particular emphasis on increasing distribution through drug stores, animal products retailers, and specialty natural retailers.