Charlotte’s Web Holdings Inc. is the latest U.S. cannabis firm to launch an IPO on the Canadian Securities Exchange. The CBD company, known formerly as Stanley Brothers Inc., began trading Aug. 30 at C$7. The stock price has nearly doubled in its first two weeks on the market. (Charlotte’s Web Holdings is trading under ticker symbol CWEB.)
The IPO generated more than C$93 million.
The move comes at a critical time in the CBD segment of the cannabis industry. As more U.S. states legalize medical cannabis, and as scientific research becomes more widely accepted and more regulated by governments, CBD product sales are expected to eclipse $20 billion by 2022, according to a new Brightfield Group report.
Charlotte’s Web is poised to capitalize on that growth. Data from New Frontier shows that the company’s quarterly revenue has increased from $3.6 million (Q3 2016) to a projected $22 million (Q4 2018).
Charlotte’s Web and the Stanley brothers gained national acclaim for their role in Sanjay Gupta’s CNN documentary, Weed, largely credited with spurring a more open conversation about the medical benefits of cannabis.
“Completing this IPO milestone is tremendously rewarding for the company, our family, and for the people that we serve,” Charlotte’s Web co-founder Joel Stanley told Forbes. “The founding principle of Charlotte’s Web was to do our greatest good in the world by helping people live better lives. Now, with the successful completion of our IPO, we have added valuable financial capital. This gives us the ability to further invest in research and product development, expand our geographical reach, build the valuable infrastructure needed for ever increasing production requirements and ultimately to share our Charlotte’s Web products and vision worldwide.”