Charlotte’s Web gets investment from British American Tobacco

CBD medicine specialist Charlotte’s Web Holdings Inc. shares rose 2.3% on Tuesday after it agreed to issue $56.8 million in convertible debentures to British American Tobacco Plc (BAT). The debenture is currently convertible into a non-controlling equity stake in Charlotte’s Web of about 19.9% and is convertible at the discretion of British American Tobacco, the company said. Kingsley Wheaton, chief growth officer at BAT, said, the appeal of Charlotte’s Web incudes a “wide portfolio of high-quality products, strong brand equity, an extensive retail presence and robust business to consumer e-commerce platform serving a loyal U.S. consumer base, and a track record of in-depth scientific research.” U.S.-listed shares of BAM rose 0.3%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.