This is a routine JV financing with no direct cash impact on Charlotte's Web. Monitor DeFloria's progress toward a $10M+ qualified financing — that would trigger conversion and potentially dilute CW's stake. No immediate trading catalyst.
Price Chart
Executive Summary
Charlotte's Web subsidiary CW issued a $1.58M convertible promissory note to DeFloria, a joint venture with AJNA BioSciences and British American Tobacco. The note consolidates prior debt and carries an 11.25% initial interest rate with conversion rights tied to a $146M valuation cap. This is a routine intercompany financing for a JV entity — no material financial impact on Charlotte's Web standalone.
Key Financial Metrics
Key Facts
- CW issued a $1,582,500 convertible promissory note to DeFloria, consolidating a prior $750,000 note plus $82,500 accrued interest.
- The note carries an initial 11.25% interest rate (8% + Bank of England Base Rate), capped at 14% per annum.
- Conversion triggers on a qualified financing of at least $10M at the lower of 80% of the investor price or a $146M valuation cap.
- DeFloria is a JV among CW, AJNA BioSciences, and a British American Tobacco subsidiary.
- The note is unsecured and matures 90 days after majority holder demand (minimum 24 months from last note issuance) or upon an event of default.
Financial Impact
$1.58M principal note issued to a JV entity, consolidating $750K prior principal and $82.5K accrued interest. No cash impact on Charlotte's Web — this is a funding vehicle for DeFloria.
Risk Factors
- DeFloria may fail to achieve a qualified financing, leaving CW with an unsecured note that could default.
- Conversion at the $146M valuation cap could dilute CW's ownership in DeFloria if the JV raises at a lower valuation.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001750155-26-000119 |
| Document: 0001750155-26-000119-index-headers.html | 0001750155-26-000119 |
| Document: 0001750155-26-000119-index.html | 0001750155-26-000119 |
| Document: 0001750155-26-000119.txt | 0001750155-26-000119 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 20, 2026 9w ago | 8-K | $0.3320 | awaiting T+60 | — | $0.2400 (−27.71%) |
Jun 5, 2026 20w ago | 8-K | $0.4200 $0.3110 | ▼ −25.95% | ▼ −29.27% | $0.2400 (−42.86%) |
Jun 3, 2026 20w ago | 8-K | $0.4170 $0.3052 | ▼ −26.81% | ▼ −28.69% | $0.2400 (−42.45%) |
Jun 1, 2026 20w ago | 8-K | $0.4910 $0.3310 | ▼ −32.59% | ▼ −33.70% | $0.2400 (−51.12%) |
May 13, 2026 23w ago | 8-K | $0.4860 $0.2520 | ▲ +48.15% | ▲ +52.59% | $0.2400 (+50.62%) |
Apr 16, 2026 27w ago | DEFA14A | $0.6080 $0.2681 | ▼ −55.90% | ▼ −62.95% | $0.2400 (−60.53%) |
Mar 31, 2026 29w ago | 8-K | $0.7350 $0.3300 | ▼ −55.10% | ▼ −67.48% | $0.2400 (−67.35%) |
Mar 31, 2026 29w ago | DEFA14A | $0.7350 $0.3300 | ▼ −55.10% | ▼ −67.48% | $0.2400 (−67.35%) |
US Market Status
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