Charlotte's Web Holdings, Inc. Chief Executive Officer William J. Morachnick reported converting 294,662 restricted stock units into 294,662 common shares on October 1, 2026. He also reported 71,751 shares delivered or withheld for payment of exercise price or tax liability, at a reported price of 0.2803 per share. The RSUs were granted April 1, 2026 and vest in equal quarterly installments over one year beginning July 1, 2026. The reported post-transaction balance was 589,324 RSUs. No Rule 10b5-1 plan is reported.
William J. Morachnick, chief executive officer of Charlotte's Web Holdings, Inc. (CWBHF), converted 375,000 restricted stock units into 375,000 common shares on September 30, 2026. On that date, 91,313 common shares were delivered or withheld for payment of exercise price or tax liability, at $0.2705 per share. The reported restricted stock unit position following the transaction was 0. No Rule 10b5-1 plan is reported.
Charlotte's Web Holdings, Inc. (CWBHF) reported that its Chief Operating Officer, Raymond J. Kunkel, purchased 137,935 Common Shares on September 3, 2026 at $0.285 per share in an open-market or private transaction. Following this transaction, he directly owns 920,208 Common Shares. No Rule 10b5-1 trading plan is reported for this purchase.
Charlotte's Web Holdings, Inc. (CWBHF), through its wholly owned subsidiary Charlotte’s Web, Inc., entered into a new Convertible Promissory Note with DeFloria, Inc., a joint venture among Charlotte’s Web, AJNA BioSciences and a British American Tobacco subsidiary. The Note has an aggregate principal of $1,582,500, rolling up a prior note of $750,000 plus $82,500 of accrued interest. It is unsecured and governed by Delaware law.
The Note bears interest at 8.0% plus the Bank of England Base Rate, initially 11.25% per annum, resetting quarterly and capped at 14%. Prepayment is not allowed without consent of Majority Holders. Maturity occurs 90 days after demand by Majority Holders (only after a 24‑month anniversary trigger) or upon default. The Note automatically converts in a DeFloria qualified financing of at least $10,000,000 into preferred stock at the lower of an 80% discount to the financing price or a $146,000,000 Valuation Cap formula, and may also convert at CW’s option in other financings. On maturity, Majority Holders can require conversion into a new senior preferred series. A deemed liquidation event triggers accelerated repayment of principal, accrued interest, plus a 20% premium, unless CW elects conversion into senior preferred stock.
Charlotte’s Web Holdings, Inc. reported lower revenue but a much stronger balance sheet for the quarter ended June 30, 2026. Revenue was $10.9 million, down 15.2% year over year, with product revenue of $10.8 million as the company shifted retail sales toward a margin-focused distributor model. Gross margin improved slightly to 47.5%, helped by better product and channel mix despite higher depreciation.
The company recorded an operating loss of $4.4 million and a net loss of $4.1 million for the quarter, and a six‑month net loss of $17.2 million versus $12.5 million a year earlier. A key event was the May 28, 2026 conversion of a C$75.3 million convertible debenture and accrued interest into 95.3 million common shares plus a $10 million private placement from BAT, eliminating the debenture and related derivatives, adding $65.0 million to additional paid‑in capital, and producing a $4.2 million loss on extinguishment.
Following this transaction, total liabilities fell to $20.3 million from $77.3 million at year‑end 2025, and shareholders’ equity moved from a $(2.0) million deficit to $56.1 million. Cash and cash equivalents increased to $14.0 million, aided by the private placement and reduced operating cash burn, and management states it expects existing liquidity to fund operations for at least the next 12 months.
Charlotte’s Web Holdings reported second-quarter 2026 revenue of $10.9 million, down 15.2% from a year earlier, as it continued shifting away from lower-margin retail channels. Gross margin improved to 47.5%, and SG&A declined 5.4%, producing an operating loss of $4.4 million and a net loss of $4.1 million, versus $6.3 million a year ago. Adjusted EBITDA was a loss of $3.0 million, improving from a $3.6 million loss.
A recapitalization with British American Tobacco converted a large debenture into equity and added $10 million of new capital, cutting total liabilities by $57.0 million to $20.3 million and restoring shareholders’ equity to $56.1 million. Cash rose to $14.0 million, and net cash used in operations for the first half fell about 45% to $3.7 million. The company highlights advancing U.S. hemp policy debates, new healthcare pilot initiatives, and DeFloria’s planned Phase 2 trial, while noting regulatory risks, including new California restrictions affecting roughly 10% of revenue.
Charlotte's Web Holdings, Inc. chief executive officer William J. Morachnick reported equity compensation-related transactions involving common shares and restricted stock units. He exercised derivative awards to acquire 294,661 common shares and the company withheld 71,750 shares to cover tax obligations, a non-market disposition.
After these transactions, he directly held 3,517,612 common shares. His restricted stock unit holdings were 883,986 units, each representing a right to receive one common share. The RSU agreement provides for vesting in equal quarterly installments over 1 year beginning on July 1, 2026, from a grant made on April 1, 2026.
Charlotte's Web Holdings, Inc. director Matthew Evan McCarthy exercised restricted stock units into common shares. On July 1, 2026, 75,000 restricted stock units converted into 75,000 common shares at a stated price of $0.00 per share. Following this equity award vesting and conversion, he now directly holds 150,000 common shares of the company, and the reported restricted stock unit position was reduced to zero.
Charlotte's Web Holdings director Angela May McElwee exercised 85,000 Restricted Stock Units into Common Shares on July 1, 2026. This was a derivative exercise, not an open-market buy or sell. Following the conversion, she directly holds 170,000 Common Shares. Each RSU represented a contingent right to receive one common share, vesting in a single installment on July 1, 2026.
Charlotte's Web Holdings, Inc. director Maureen K. Usifer exercised restricted stock units into 75,000 Common Shares. The Form 4 shows a derivative exercise on July 1, 2026, converting 75,000 restricted stock units into 75,000 Common Shares at a stated price of $0.00 per share, with no sale reported.
Following the transaction, Usifer directly holds 150,000 Common Shares. The derivative line shows 75,000 restricted stock units exercised into an equal number of Common Shares, leaving no remaining units from that grant. Footnotes explain that each unit represented a contingent right to receive one Common Share and that the units vested in a single installment on July 1, 2026.