---
schema_version: "secwatch.filing_event.v1"
accession: "0001750155-26-000119"
form_type: "8-K"
ticker: "CWBHF"
cik: "0001750155"
company_name: "Charlotte's Web Holdings, Inc."
filed_at: "2026-08-20T20:21:06+00:00"
generated_at: "2026-08-20T20:22:14.304945+00:00"
event_type: "debt"
sentiment: "neutral"
materiality_score: 0.5
calibrated_materiality_score: 0.5
confidence: "high"
source: SEC EDGAR
---

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

## Summary
- 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.

## SEC filing metadata
- accession: 0001750155-26-000119
- form_type: 8-K
- ticker: CWBHF
- cik: 0001750155
- company_name: Charlotte's Web Holdings, Inc.
- filed_at: 2026-08-20T20:21:06+00:00
- event_type: debt
- sentiment: neutral
- materiality_score: 0.5
- calibrated_materiality_score: 0.5
- confidence: high
- sec_items: 1.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1750155/000175015526000119/0001750155-26-000119-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1750155/000175015526000119/cweb-20260814.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001750155-26-000119
- JSON: https://secwatch.observer/filing/0001750155-26-000119.json
- Plain text: https://secwatch.observer/filing/0001750155-26-000119.txt

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