Charlotte's Web Holdings Reports Q 1-2021 Results.

BOULDER, Colo: (TSX: CWEB) (OTCQX: CWBHF), Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company") the market share leader in full spectrum cannabidiol (CBD) hemp extract wellness products, today reported financial results for the first quarter ended March 31, 2021. All amounts are expressed in United States' dollars, unless otherwise noted. Certain metrics, including those expressed on an adjusted basis, are non-IFRS measures.

Q1-2021 Financial Highlights

Consolidated revenue increased 9.1% to $23.4 million vs. $21.5 million in Q1-2020

DTC eCommerce sales increased 14.5% year-over-year and contributed 68.9% of Q1 revenue

B2B net revenue decreased 1.4% year-over-year. Excluding non-retail B2B hemp drying services, comparable B2B retail sales increased 11.0% and expanded market share

Gross profit of $13.7 million, or 58.4% of consolidated revenue

Operating expenses were 2.9% higher year-over-year and 15.2% lower from Q3-2020 in line with the cost reduction plan implemented Q4-2020

Adjusted EBITDA loss of $4.7 million vs. loss of $5.7 million in Q1-2020

$35.0 million cash (plus $10.8 million pending IRS tax receivable) and $95.6 million working capital on March 31, 2021

$10 million unused line of credit with JPMorgan extendable to $20 million

Business Highlights

Expanded its number one market share position across major retail channels including total food/drug/mass retail ("F/D/M") and US natural specialty retail

Completed clinical study reaffirming the liver health safety of Charlotte's Web hemp derived CBD extracts and shared quantitative data study's results with the U.S. FDA

Secured future optionality to enter the US cannabis wellness category through a purchase option agreement to acquire Stanley Brothers cannabis business pending US federal legalization of cannabis

Three proprietary hemp cultivars approved for cultivation in Canada in 2021

Secured three U.S. Patents for proprietary hemp cultivars bringing total patents to five

Successfully enforced its Charlotte's Web trademark

CW Labs announced a scientific collaboration researching hemp CBD efficacy with Harvard Medical School's Dr. Staci Gruber, Ph.D.

Invested $1.6 million capex to substantially complete phase III expansion of new 137,000 sq. ft. facility with extraction infrastructure and R&D expansion

Launched Charlotte's Web first THC-free broad spectrum extract tinctures and topicals

Supported federal and state legislative actions to help develop comprehensive regulatory framework with Federal Bill H.R. 841 and proposed regulations in CA and NY

"Despite reduced...