British American Tobacco invests in CBD specialist Charlotte’s WebPosted by On

British American Tobacco PLC (LSE:BATS) revealed late on Monday that invested £48mln (US$58.6mln) in US cannabidiol (CBD) specialist, Charlotte’s Web Holdings, which analysts said was “interesting” and potentially “significant”.

The investment was made via a convertible debenture which could result in FTSE 100-listed BAT holding a 20% stake.

Based in Boulder, Colorado, Charlotte’s Web is a market leader in hemp-derived CBD wellness products, such as a range of oils, gummies, skincare and healthcare items. 

It also has an option to acquire US THC cannabis company, Stanley Brothers USA, upon federal legalisation of cannabis in the US or such earlier time when otherwise permitted by stock exchange rules.

For BAT this follows its other moves into cannabis and CBD in the past couple of years, including paying £129mln for a 20% stake in Canadian THC company Organigram in March 2021, the establishment last year of a ‘centre of excellence’ to focus on “developing the next generation of cannabis products, with an initial focus on CBD”, and funding provided by its venture arm to a number of cannabis related companies, including most recently US$37.6mln to German cannabis company Sanity as Germany prepares for a legal recreational market roll-out in 2024.

BAT said it made the deal as Charlotte’s Web has a “clear” appeal, according to chief growth officer Kingsley Wheaton, who pointed to “a wide portfolio of high-quality products, strong brand equity, an…

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