secwatch.observer — SEC 8-K summary
======================================

Issuer:     Charlotte's Web Holdings, Inc. (CWBHF)
CIK:        0001750155
Form:       8-K
Filed at:   2026-06-03T21:14:48+00:00
Accession:  0001750155-26-000094
Event type: other_material
Sentiment:  neutral
Materiality: 0.85
Item codes: 1.01, 1.02, 3.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

- 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.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1750155/000175015526000094/0001750155-26-000094-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1750155/000175015526000094/cweb-20260528.htm
  HTML page:      https://secwatch.observer/filing/0001750155-26-000094

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer