---
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"
generated_at: "2026-06-03T21:17:33.732231+00:00"
event_type: "other_material"
sentiment: "neutral"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# BAT converts C$75M debenture at C$0.94, invests US$10M, now owns 40.6% of Charlotte's Web

## Summary
- 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.

## SEC filing metadata
- 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
- event_type: other_material
- sentiment: neutral
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 1.01, 1.02, 3.02, 9.01
- 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

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001750155-26-000094
- JSON: https://secwatch.observer/filing/0001750155-26-000094.json
- Plain text: https://secwatch.observer/filing/0001750155-26-000094.txt

## Key facts
- Equity Issuances
  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.
  - Security: common stock
  - Shares: 14,662,765 Common Shares
  - Purchaser: BT DE Investments Inc. (BAT)
  - Consideration: C$0.94 per Purchased Share, aggregate US$10,000,000
  source text: 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_url: https://www.sec.gov/Archives/edgar/data/1750155/000175015526000094/0001750155-26-000094-index.htm
- Equity Issuances
  Charlotte's Web Holdings, Inc. issued convertible note to BT DE Investments Inc. (BAT).
  - Security: convertible note
  - Purchaser: BT DE Investments Inc. (BAT)
  source text: 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_url: https://www.sec.gov/Archives/edgar/data/1750155/000175015526000094/0001750155-26-000094-index.htm
- Equity Issuances
  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.
  - Security: common stock
  - Shares: 95,281,277 Common Shares
  - Purchaser: BT DE Investments Inc. (BAT)
  - Consideration: conversion of principal and accrued interest at C$0.94 per share
  source text: 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_url: https://www.sec.gov/Archives/edgar/data/1750155/000175015526000094/0001750155-26-000094-index.htm
- Material Agreements
  Charlotte's Web Holdings, Inc. amended "Amendment and Conversion Notice" with BT DE Investments Inc. ("BAT") (effective 2026-05-28).
  - Action: amendment
  - Agreement: credit facility
  - Counterparty: BT DE Investments Inc. ("BAT")
  - Effective: 2026-05-28
  source text: 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_url: https://www.sec.gov/Archives/edgar/data/1750155/000175015526000094/0001750155-26-000094-index.htm
- Material Agreements
  Charlotte's Web Holdings, Inc. amended "Amended & Restated IRA" with BT DE Investments Inc. ("BAT") (effective 2026-05-28).
  - Action: amendment
  - Counterparty: BT DE Investments Inc. ("BAT")
  - Effective: 2026-05-28
  source text: 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_url: https://www.sec.gov/Archives/edgar/data/1750155/000175015526000094/0001750155-26-000094-index.htm

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