Charlotte's Web subsidiary issues $1.58M convertible note to DeFloria JV

Charlotte's Web Holdings, Inc.

CW issued $1,582,500 convertible promissory note to DeFloria, replacing prior $750K note plus $82.5K accrued interest.
Interest at 11.25% initially (8% + Bank of England Base Rate), capped at 14%, payable quarterly, matures on demand after 24 months.
Automatic conversion on qualified financing ≥$10M at 80% of price or $146M valuation cap.
At maturity may convert to senior preferred; 20% repayment premium on deemed liquidation unless CW elects conversion.
Note is unsecured, governed by Delaware law; events of default trigger acceleration.

This headline and bullets were generated automatically by deepseek-v4-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.