---
schema_version: "secwatch.filing_event.v1"
accession: "0001279569-22-001892"
form_type: "8-K"
ticker: "CWBHF"
cik: "0001750155"
company_name: "Charlotte's Web Holdings, Inc."
filed_at: "2022-11-15T23:59:59+00:00"
generated_at: "2026-06-21T18:41:14.720547+00:00"
event_type: "debt"
sentiment: "positive"
materiality_score: 0.9
calibrated_materiality_score: 0.9
confidence: "high"
source: SEC EDGAR
---

# Charlotte's Web receives US$56.8M investment from BAT via convertible debenture

## Summary
- Convertible debenture principal C$75.3M (~US$56.8M), conversion price C$2.00/share, representing ~19.9% equity.
- Interest rate 5% p.a., steps down to 1.5% upon U.S. federal regulation of CBD; maturity November 2029.
- Proceeds to fund growth initiatives and R&D; pro-forma cash and short-term investments ~US$65M.
- BAT gets board nomination rights: 20% of seats while ownership >=15%, stepping down to 10%.
- BAT subject to 18-month lock-up on share dispositions after conversion of the debenture.

## SEC filing metadata
- accession: 0001279569-22-001892
- form_type: 8-K
- ticker: CWBHF
- cik: 0001750155
- company_name: Charlotte's Web Holdings, Inc.
- filed_at: 2022-11-15T23:59:59+00:00
- event_type: debt
- sentiment: positive
- materiality_score: 0.9
- calibrated_materiality_score: 0.9
- confidence: high
- sec_items: 1.01, 2.03, 3.02, 8.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1750155/000127956922001892/0001279569-22-001892-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1750155/000127956922001892/form8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001279569-22-001892
- JSON: https://secwatch.observer/filing/0001279569-22-001892.json
- Plain text: https://secwatch.observer/filing/0001279569-22-001892.txt

## Key facts
- Material Agreements
  Charlotte's Web Holdings, Inc. entered into Subscription Agreement with BT DE Investments, Inc. valued at approximately US$56.8 million (C$75.3 million) (effective 2022-11-14).
  - Action: entry
  - Agreement: notes offering
  - Counterparty: BT DE Investments, Inc.
  - Value: approximately US$56.8 million (C$75.3 million)
  - Effective: 2022-11-14
  source text: Effective as of November 14, 2022, Charlotte’s Web Holdings, Inc. (the “Company”) entered into a subscription agreement (the “Subscription Agreement”) with BT DE Investments, Inc. a wholly-owned subsidiary of BAT Group (LSE: BATS and NYSE: BTI), providing for the issuance of an approximately US$56.8 million (C$75.3 million) convertible debenture (the “Debenture”) that is convertible into 19.9% ownership of Charlotte’s Web common shares at a conversion price of C$2.00 per common share of the Company on the Toronto Stock Exchange (TSX).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1750155/000127956922001892/0001279569-22-001892-index.htm
- Material Agreements
  Charlotte's Web Holdings, Inc. entered into Investor Rights Agreement with BT DE Investments, Inc. (effective 2022-11-14).
  - Action: entry
  - Agreement: notes offering
  - Counterparty: BT DE Investments, Inc.
  - Effective: 2022-11-14
  source text: greement”) with BT DE Investments, Inc. a wholly-owned subsidiary of BAT Group (LSE: BATS and NYSE: BTI), providing for the issuance
  evidence_url: https://www.sec.gov/Archives/edgar/data/1750155/000127956922001892/0001279569-22-001892-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.