{"schema_version":"secwatch.filing_event.v1","accession":"0001750155-26-000094","form_type":"8-K","ticker":"CWBHF","cik":"0001750155","company_name":"Charlotte's Web Holdings, Inc.","filed_at":"2026-06-03T21:14:48+00:00","discovered_at":"2026-06-03T21:16:00.208694+00:00","generated_at":"2026-06-03T21:17:33.732231+00:00","sec_items":["1.01","1.02","3.02","9.01"],"event_type":"other_material","sentiment":"neutral","materiality_score":0.85,"calibrated_materiality_score":0.85,"confidence":"high","headline":"BAT converts C$75M debenture at C$0.94, invests US$10M, now owns 40.6% of Charlotte's Web","bullets":["BAT invested US$10M (C$13.9M) for 14.66M common shares at C$0.94 each via private placement.","Convertible debenture amended: conversion price cut from C$2.00 to C$0.94, cap raised to 40.8%.","BAT converted all principal (C$75.3M) and accrued interest into 95.28M shares; total holding = 109.9M shares (40.6%).","New investor rights agreement grants BAT at least 2 board seats, pre-emptive rights, and standstill until May 2028.","Debenture terminated; shares subject to lock-up until Nov 2027 and BAT gets demand & piggyback registration rights."],"urls":{"canonical":"https://secwatch.observer/filing/0001750155-26-000094","json":"https://secwatch.observer/filing/0001750155-26-000094.json","markdown":"https://secwatch.observer/filing/0001750155-26-000094.md","text":"https://secwatch.observer/filing/0001750155-26-000094.txt","edgar_index":"https://www.sec.gov/Archives/edgar/data/1750155/000175015526000094/0001750155-26-000094-index.htm","edgar_primary_document":"https://www.sec.gov/Archives/edgar/data/1750155/000175015526000094/cweb-20260528.htm"},"model":{"generated_by":"deepseek-v4-flash:cloud@v2","generated_at":"2026-06-03T21:17:33.732231+00:00"},"review":{"review_status":"machine_generated","human_reviewed":false,"corrected":false,"correction_note":null,"correction_timestamp":null,"superseded_by":null,"related_filings":[]},"source_grounded_claims":[{"claim_id":"80273cb636eb7d8d23ae46bdf3bb88b34a88a5a2","claim":"Charlotte's Web Holdings, Inc. issued 14,662,765 Common Shares of common stock to BT DE Investments Inc. (BAT) for C$0.94 per Purchased Share, aggregate US$10,000,000.","evidence_excerpt":"on May 28, 2026, the Company issued the Purchased Shares to BAT at C$0.94 per share for an aggregate of US$10,000,000, or C$13,873,000.","evidence_source":"SEC 8-K Item 3.02/3.03","evidence_url":"https://www.sec.gov/Archives/edgar/data/1750155/000175015526000094/0001750155-26-000094-index.htm","confidence":0.9,"family_label":"Equity Issuances","details":[{"label":"Security","value":"common stock"},{"label":"Shares","value":"14,662,765 Common Shares"},{"label":"Purchaser","value":"BT DE Investments Inc. (BAT)"},{"label":"Consideration","value":"C$0.94 per Purchased Share, aggregate US$10,000,000"}],"fact_type":"equity_issuance"},{"claim_id":"8395a87b6ede3122f6315a497983e9e577687838","claim":"Charlotte's Web Holdings, Inc. issued convertible note to BT DE Investments Inc. (BAT).","evidence_excerpt":"the Initial Conversion Price of the Convertible Debenture was reduced from C$2.00 to C$0.94 per share; (ii) the Interest Conversion Price of the Convertible Debenture was amended to C$0.94 per share; and (iii) the applicable threshold for purposes of the Conversion Cap was increased from 19.9% to 40.8%","evidence_source":"SEC 8-K Item 3.02/3.03","evidence_url":"https://www.sec.gov/Archives/edgar/data/1750155/000175015526000094/0001750155-26-000094-index.htm","confidence":0.9,"family_label":"Equity Issuances","details":[{"label":"Security","value":"convertible note"},{"label":"Purchaser","value":"BT DE Investments Inc. (BAT)"}],"fact_type":"equity_issuance"},{"claim_id":"87a503a3d0410ae6b9145e63accceabd88637e04","claim":"Charlotte's Web Holdings, Inc. issued 95,281,277 Common Shares of common stock to BT DE Investments Inc. (BAT) for conversion of principal and accrued interest at C$0.94 per share.","evidence_excerpt":"on May 28, 2026, the Company issued 95,281,277 Common Shares in conversion of the principal amount of, and all accrued but unpaid interest on, the Convertible Debenture at C$0.94 per share.","evidence_source":"SEC 8-K Item 3.02/3.03","evidence_url":"https://www.sec.gov/Archives/edgar/data/1750155/000175015526000094/0001750155-26-000094-index.htm","confidence":0.9,"family_label":"Equity Issuances","details":[{"label":"Security","value":"common stock"},{"label":"Shares","value":"95,281,277 Common Shares"},{"label":"Purchaser","value":"BT DE Investments Inc. (BAT)"},{"label":"Consideration","value":"conversion of principal and accrued interest at C$0.94 per share"}],"fact_type":"equity_issuance"},{"claim_id":"111ad45ebf1b19678d76af9ea7aa462302c70d43","claim":"Charlotte's Web Holdings, Inc. amended \"Amendment and Conversion Notice\" with BT DE Investments Inc. (\"BAT\") (effective 2026-05-28).","evidence_excerpt":"on May 28, 2026, the Company and BAT entered into an amendment and conversion notice (the “Amendment and Conversion Notice”) for the Convertible Debenture","evidence_source":"SEC 8-K Item 1.01/1.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/1750155/000175015526000094/0001750155-26-000094-index.htm","confidence":0.9,"family_label":"Material Agreements","details":[{"label":"Action","value":"amendment"},{"label":"Agreement","value":"credit facility"},{"label":"Counterparty","value":"BT DE Investments Inc. (\"BAT\")"},{"label":"Effective","value":"2026-05-28"}],"fact_type":"material_agreement"},{"claim_id":"b7ec62404a53dab10939c92fc644686cc7b811f1","claim":"Charlotte's Web Holdings, Inc. amended \"Amended & Restated IRA\" with BT DE Investments Inc. (\"BAT\") (effective 2026-05-28).","evidence_excerpt":"on May 28, 2026, the Company and BAT amended and restated the Restated Investor Rights Agreement (as amended and restated, the “Amended & Restated IRA”)","evidence_source":"SEC 8-K Item 1.01/1.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/1750155/000175015526000094/0001750155-26-000094-index.htm","confidence":0.9,"family_label":"Material Agreements","details":[{"label":"Action","value":"amendment"},{"label":"Counterparty","value":"BT DE Investments Inc. (\"BAT\")"},{"label":"Effective","value":"2026-05-28"}],"fact_type":"material_agreement"}],"license":"Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer"}