secwatch.observer — SEC 8-K summary
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Issuer:     Charlotte's Web Holdings, Inc. (CWBHF)
CIK:        0001750155
Form:       8-K
Filed at:   2026-08-20T20:21:06+00:00
Accession:  0001750155-26-000119
Event type: debt
Sentiment:  neutral
Materiality: 0.50
Item codes: 1.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1750155/000175015526000119/0001750155-26-000119-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1750155/000175015526000119/cweb-20260814.htm
  HTML page:      https://secwatch.observer/filing/0001750155-26-000119

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