Charlotte's Web Takes Steps Towards Scientific Legitimacy

Debra Borchardt profile picture
Debra Borchardt
1.01K Followers

Summary

  • Creates CW Labs for R&D credibility.
  • Cuts hemp production costs.
  • Hemp prices may have finally bottomed.
  • Seals of approval will be needed to win over consumers.

Charlotte’s Web Holdings, Inc. (TSX:CWEB, OTCQX:OTCQX:CWBHF) is moving past the stage of anecdotal results and moving more towards real research and development. The company is a market leader in the world of hemp-based CBD products but has been limited with the claims it can make since its products are essentially untested by any study trials.

The company announced it has created the Charlotte’s Web Labs (CW Labs) which will be an internal division for research & development. The R&D team will be under the leadership of recently hired Senior Vice President of Innovation, Tim Orr, who will lead CW Labs’ expanded team of a dozen external and internal research specialists based in Buffalo, New York, and Boulder, Colorado. Orr was previously at Johnson & Johnson and Abbott Laboratories, which brings a huge level of credibility to the work.

It's a big boost to upstate New York as the R&D team will be headquartered on the Buffalo Niagara Medical Campus and CW Labs will be located in the Hauptmann Woodward Research Institute on the campus of the University at Buffalo’s Jacobs School of Medicine and The Center for Integrated Global Biomedical Sciences.

The company said that it would report its 2019 fourth quarter and year-end results via press release pre-market March 24, 2020.

CW Labs said it is currently engaged in double-blinded, placebo-controlled human clinical trials addressing hemp-based solutions for several need states. “The launch of CW Labs formalizes our reach into the science, efficacy and safety of hemp plant compounds,” said Deanie Elsner, CEO of Charlotte's Web.

2019 Hemp Production

Charlotte's Web recently reported the results of the 2019 harvest versus 2018:

  • 245% increase in total dried biomass to 2.34 million lbs.
  • 22% increase in CBD potency.
  • 10% increase in yield per acre.
  • Estimated 36 thousand kg CBD harvested, with a

This article was written by

Debra Borchardt profile picture
1.01K Followers
Debra Borchardt is a former Vice President of Bear Stearns where she worked for 15 years before its demise. She held a Series 7 and RIA license. She left Wall Street after getting her Masters degree in Business Journalism from New York University to become a financial reporter. Since then, Debra worked at TheStreet.com for eight years and recently launched the financial cannabis news website Green Market Report. She has covered the cannabis industry for over 5 years and is in demand as a moderator at many cannabis conferences due to her knowledge about the sector.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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