Charlotte's Web enters strategic alliance with Tilray for CBD product distribution in Canada

Charlotte's Web Holdings, Inc.

Tilray gets exclusive rights to license, manufacture, market, and distribute Charlotte's Web CBD products in Canada.
Tilray to pay Charlotte's Web a monthly royalty of 10% of net sales revenue from third-party sales.
Tilray commits to minimum annual marketing spend of 5% of net sales, plus C$250,000 launch marketing in first contract year.
Products expected to launch in Canada in early 2023, starting with hemp extract oil tinctures, then gummies and topicals.
Agreement expires Oct 31, 2026; either party can terminate for convenience after Oct 31, 2024 with 6 months' notice.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Charlotte's Web Holdings, Inc. entered into Manufacturing and Sales License Agreement with Aphria, Inc., an Ontario corporation, an affiliate of Tilray Brands, Inc. valued at $250,000 (Canadian dollars) (effective 2022-11-01).

Action: entry
Agreement: license
Counterparty: Aphria, Inc., an Ontario corporation, an affiliate of Tilray Brands, Inc.
Value: $250,000 (Canadian dollars)
Effective: 2022-11-01

Exact text from the filing

Effective as of November 1, 2022, Charlotte’s Web Holdings, Inc. (the “Company”) entered into a Manufacturing and Sales License Agreement (the “Agreement”) with Aphria, Inc., an Ontario corporation, an affiliate of Tilray Brands, Inc. (“Tilray”), pursuant to which the parties entered into a strategic alliance by which Tilray will have the rights to licensing, manufacturing, quality, marketing and distribution of Charlotte’s Web TM CBD hemp extract products in Canada.

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Source: SEC EDGAR

accession 0001279569-22-001819

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