CWBHF Charlottes Web Holdings Inc (QX)

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The setting of the number of directors at six;‎

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The election of directors for the forthcoming year from the nominees proposed by the board of directors of the Company (the “Board” or the “board of directors”);‎

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The appointment of Ernst & Young LLP, as auditors for the Company and the authorization of the Board to fix the auditors’ remuneration and terms of ‎engagement; and

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The transaction of such other business as may properly come before the Meeting or any adjournment(s) or postponement(s) ‎thereof.‎

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receive a form of proxy executed by the Intermediary but otherwise uncompleted. The Non-registered ‎Shareholder may complete the proxy and return it directly to Broadridge Financial Solutions, Inc. (“Broadridge”); or

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be provided with a request for voting instructions. The Intermediary is required to send the Company an ‎executed form of proxy completed in accordance with any voting instructions received by the ‎Intermediary.‎

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our Notice of Meeting;‎

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our proxy statement for the Meeting (including a copy of our Annual Benefit Report for the year ended December 31, 2022);‎

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a Proxy Instrument or voting instruction card;

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our 2022 Annual Report on Form 10-K (including the audited annual ‎consolidated financial statements of the Company for the fiscal year ended December 31, 2022, together with ‎the notes thereto, and the independent auditor’s report thereon and the related management’s discussion and ‎analysis); and

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a request for financial statement form for the fiscal year ended December 31, 2023.

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The setting of the number of directors at six;‎

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The election of directors for the forthcoming year from the nominees proposed by the Board;‎

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The appointment of Ernst & Young LLP, as auditors for the Company and the authorization of the Board to ‎fix the auditors’ remuneration and terms of engagement; and

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The transaction of such other business as may properly come before the Meeting or any adjournment(s) or postponement(s) ‎thereof.‎

*

The Board has adopted a “majority voting” policy (the “Majority Voting Policy”). Pursuant to the Majority Voting Policy, if a nominee for election as director receives “for” votes fewer than a majority of the votes ‎‎(50% + 1 vote) cast with respect to his or her election by shareholders, he or she must immediately tender his or ‎her resignation to the Board following the meeting of shareholders at which the election is held. Upon receiving ‎such resignation, the Corporate Governance and Nominating Committee (the “CG&N Committee”) will consider it ‎and make a recommendation to the Board on whether or not to accept the resignation. The Board shall accept ‎the resignation unless it determines that the applicable director shall continue and announce its decision in a ‎press release promptly within 90 days following the meeting of shareholders. If the Board determines not to ‎accept a resignation, the press release must fully state the reasons for that decision. The resignation will be ‎effective when accepted by the Board. The director who tendered his or her resignation is not permitted to be a ‎part of any deliberations of the CG&N Committee or of the Board pertaining to the resignation offer. The policy ‎only applies in circumstances involving an uncontested election of directors.‎

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at any time up to and including ‎the last business day preceding the day of the Meeting or any adjournment(s) or postponement(s) thereof at which the proxy is to ‎be used by an instrument in writing executed by the shareholder or by his, her or its attorney authorized in writing or, if the shareholder is a corporation, under its corporate seal by an officer or attorney thereof duly authorized, ‎and deposited with Broadridge by mail using the enclosed envelope to Attention: Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717; or

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by delivering written notice of such revocation to the chairman of the Meeting prior to the ‎commencement of the Meeting on the day of the Meeting or any adjournment(s) or postponement(s) thereof.

(1)

Compensation Committee member.‎ The chair is John Held.

(2)

Audit Committee member. The chair is Thomas Lardieri.

(3)

Corporate Governance and Nominating Committee Member. The chair is John Held.‎

(a)

was subject to: (i) a cease trade order, (ii) an order similar to a cease trade order, or (iii) an order that denied the relevant company access to any exemption under securities legislation, that was in effect for a period of more than 30 consecutive days (collectively, an “Order”), that was issued while the proposed director was acting in the capacity as director, chief executive officer or chief financial officer; or

(b)

was subject to an Order that was issued after the proposed director ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer.

*

Represents less than 1%.

(1)

For purposes of this table, beneficial ownership has been determined in accordance with the provisions of Rule 13d-3 of the Exchange Act, under which, in general, a person is deemed to be the beneficial owner of a security if he or she has or shares the power to vote or direct the voting of the security or the power to dispose of or direct the disposition of the security, or if he or she has the right to acquire beneficial ownership of the security within 60 days of April 21, 2023 (“presently exercisable”). Except as otherwise indicated, each director or executive officer has sole voting and investment power with respect to the shares shown, and none of such shares are pledged. Unless otherwise indicated, the address of each of the named individuals is c/o Charlotte’s Web Holdings, Inc., 700 Tech Court, Louisville, Colorado 80027.

(2)

Mr. Atwood was appointed as a director effective as of March 14, 2023 as the designee to the board of directors by BT DE Investments Inc. pursuant to the terms of the Investor Rights Agreement, which was entered into in connection with the issuance of an approximately $56.8 million ("Canadian Dollar" C$75.3 million) convertible debenture (the “debenture”) convertible into 19.9% ownership of the Company’s Common Shares at a conversion price of C$2.00 per Common Share of the Company on the Toronto Stock Exchange (TSX) on the terms of a subscription agreement between the Company and BT DE Investments Inc. Mr. Atwood’s address is Globe House, 4 Temple Place, London, England WCR2 2PG.

(3)

Includes 17,420 Common Shares underlying options presently exercisable.

(4)

Includes 482,145 Common Shares underlying options.

(5)

Based on information available at the time of the individual’s departure as an executive officer of the Company.

(6)

Includes 600,000 Common Shares underlying options presently exercisable.

(7)

Includes 113,868 Common Shares underlying options presently exercisable.

(8)

Includes 37,500 Common Shares underlying options presently exercisable.

(9)

Includes 1,250,933 Common Shares underlying options presently exercisable.

(10)

Based solely on the Statement on Schedule 13D filed by BT DE Investments Inc. with the U.S. Securities and Exchange Commission on November 23, 2022. BT DE Investments Inc. is a wholly owned subsidiary of BATUS Holdings Inc., which is a wholly owned subsidiary of Louisville Securities Limited, which is a wholly owned subsidiary of British-American Tobacco (Holdings) Limited, which is a wholly owned subsidiary of B.A.T. Industries p.l.c., which is a wholly owned subsidiary of Weston (2009) Limited, which is a wholly owned subsidiary of British American Tobacco (2009) Limited, which is a wholly owned subsidiary of British American Tobacco (2012) Limited, which is a wholly owned subsidiary of British American Tobacco (1998) Limited, which is a wholly owned subsidiary of British American Tobacco p.l.c. The shares represent the Common Shares issuable upon conversion of an approximately $56.8 million (C$75.3 million) debenture, which comprise approximately 19.9% of the outstanding Common Shares assuming full conversion of the debenture. In connection with the issuance of the debenture on the terms of a subscription agreement between the Company and BT DE Investments Inc., the Company and BT DE Investments Inc. entered into the Investor Rights Agreement. Under the terms of the Investor Rights Agreement, the Company’s director, Mr. Jonathan Atwood, was appointed as the designee to the board of directors by BT DE Investments Inc. The Investor Rights Agreement provides BT DE Investments, Inc. with certain rights, including the right to nominate 20% of the members of the Company’s board of directors for so long as BT DE Investments, Inc. and its affiliates’ partially diluted ownership of the Company’s common shares is at least 15% (with a stepdown in its nomination rights to 10% of the members of the board of directors). BT DE Investments, Inc. nomination rights terminate upon its and its affiliates’ partially diluted ownership of the Company’s common shares declining below 10% for, subject to certain exceptions in the investor rights agreement, a 30-day period. The conversion of the debenture in whole in accordance with its terms could result in a change of control of the Company.

(1)

A member of the Audit Committee is independent if he or she has no direct or indirect ‘material relationship’ with the Company in accordance with NI 52-110 and the Nasdaq rules. A material relationship is a relationship which could, in the view of the Company’s Board, reasonably interfere with the exercise of a member’s independent judgment. Any executive officer of the Company is deemed to have a material relationship with the Company.

(2)

A member of the Audit Committee is financially literate if he or she has the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by the Company’s financial statements.

*

Qualifies as an audit committee financial expert in accordance with SEC rules.

(1)

A member of the Corporate Governance and Nominating Committee is independent if he or she has no direct or indirect ‘material relationship’ with the Company. A material relationship is a relationship which could, in the view of the Company’s Board, reasonably interfere with the exercise of a member’s independent judgment. Any executive officer of the Company is deemed to have a material relationship with the Company.

(1)

A member of the Compensation Committee is independent if he or she has no direct or indirect ‘material relationship’ with the Company. A material relationship is a relationship which could, in the view of the Company’s Board, reasonably interfere with the exercise of a member’s independent judgment. Any executive officer of the Company is deemed to have a material relationship with the Company.

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Previous history on the Company’s Board of Directors.

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Knowledge of past and current business strategies.

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Extensive business and legal experience in various executive and board level roles.

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Extensive business experience in various executive and board level roles.

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International business experience.

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Significant accounting and financial expertise.

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Extensive business experience in various executive and board level roles

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Knowledge of the industry

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Mr. Atwood was designated for service on the Board by BT DE Investments Inc. under the terms of the Investor Rights Agreement

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Extensive business experience in various executive and board level roles.

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Significant accounting and financial expertise (qualifying her to serve on the Company’s Audit Committee).

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Extensive business experience in various executive and board level roles.

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Significant accounting and financial expertise (qualifying him to serve on the Company’s Audit Committee).

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Significant accounting and financial expertise (qualifying her to serve on the Company’s Audit Committee).

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Expertise in strategic planning, business expansion, merchandising, marketing, financing and corporate governance.

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align executive compensation with corporate performance and appropriate peer group comparisons;

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produce long-term, positive results for shareholders and other key stakeholders;

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provide market competitive compensation and benefits to attract and retain highly qualified management; and

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provide incentives that encourage superior corporate performance to support the Company’s overall business strategy and objectives.

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Options: The exercise price of any options is determined by the Board, subject to Toronto Stock Exchange (“TSX”) approval (if required), at the time such options are granted. In no event shall such exercise price be lower than the greater of the closing market prices of the underlying securities on: (a) the trading day prior to the date of grant of the options, and (b) the date of grant of the options. Subject to any vesting restrictions imposed by the TSX, the Board may, in its sole discretion, determine the time during which options shall vest and the method of vesting, or that no vesting restriction shall exist. The terms of an option may not be amended once issued. If an option is cancelled prior to its expiry date, the Company must post notice of the cancellation and shall not grant new options to the same person until 30 days have elapsed from the date of cancellation. Generally, options granted under the LTIP vest evenly over three years on an annual basis from the grant date.

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Restricted Stock Units: Each restricted stock unit granted under the LTIP entitles the participant to receive, subject to the provisions of the LTIP and the award agreement, Common Shares, subject to certain transferability and other restrictions. The specific terms of any restricted stock unit grants will be subject to determination by the Compensation Committee, including the consideration payable, if any, vesting terms and any performance criteria to be satisfied. Generally, restricted stock units granted under the LTIP vest evenly over three years on an annual basis from the grant date.

(1)

Calculated using the basic weighted average number of Common Shares outstanding during the year ended December 31, 2020. Using the fully diluted weighted average number of Common Shares outstanding during the year ended December 31, 2020, the burn rate for the LTIP is 1.14% and for the Legacy Option Plan is 0.0%.

(2)

Calculated using the basic weighted average number of Common Shares outstanding during the year ended December 31, 2021. Using the fully diluted weighted average number of Common Shares outstanding during the year ended December 31, 2021, the burn rate for the LTIP is 2.45% and for the Legacy Option Plan is 0.0%.

(3)

Calculated using the basic weighted average number of Common Shares outstanding during the year ended December 31, 2022. Using the fully diluted weighted average number of Common Shares outstanding during the year ended December 31, 2022, the burn rate for the LTIP is 5.02% and for the Legacy Option Plan is 0.0%.

(1)

The amounts reported in the Stock Awards and Option Awards columns reflect aggregate grant date fair value computed in accordance with ASC Topic 718, Compensation—Stock Compensation. These amounts reflect the Company’s calculation of the value of these awards at the grant date and do not necessarily correspond to the actual value that may ultimately be realized by the named executive officer. Assumptions used in the calculation of these amounts for 2022 are as follows: expected volatility – 83.0%-86.0%; expected term – 5.5-7.5 years; risk-free interest rate – 1.8%-3.3%; value of underlying shares - $0.44-$1.56; dividend yield – 0%. Assumptions used in the calculation of these amounts for 2021 are included in Note 14 to the Company’s audited consolidated financial statements for the fiscal year ended December 31, 2021, which were included in the Annual Report on Form 10-K.

(2)

The amounts shown in the Non-Equity Incentive Plan Compensation column represent payouts under the Company’s cash bonus program for 2022. In the case of Mr. Gould, consists of $100,000 in guaranteed short-term incentive for fiscal year ending December 31, 2022.

(3)

For 2022, in the case of Mr. Tortoroli, consists of $60,620 in lease payments for housing and vehicle, $250 in employer contributions to his health savings account and $6,485 in employer paid insurance premiums; in the case of Mr. Stanley, consists of $9,150 in employer matching contributions under the Company’s 401(k) plan and $8,484 in employer paid insurance premiums; in the case of Mr. Rogers, consists of $9,000 in employer matching contributions under the Company’s 401(k) plan, $8,526 in employer paid insurance premiums and $25,000 in relocation expenses; in the case of Mr. Booysen, consists of $5,556 in employer matching contributions under the Company’s 401(k) plan, $2,837 in employer paid insurance premiums, $250 in employer contributions to his health savings account and $250,000 in severance; and in the case of Mr. Gould, consists of $3,750 in employer matching contributions under the Company’s 401(k) plan and $3,607 in employer paid insurance premiums. For 2021, in the case of Mr. Tortoroli, consists of director fees; and in the case of Mr. Booysen, consists of $3,704 in employer matching contributions under the Company’s 401(k) plan, $7,149 in employer paid insurance premiums and $250 in employer contributions to his health savings account.

(4)

For 2022, in the case of Mr. Gould, consists of $100,000 in signing bonus.

(5)

Messrs. Stanley, Rogers and Gould were not named executive officers prior to the fiscal year ended December 31, 2022.

(1)

The Company’s only share-based awards are awards (other than options) that have been granted under the LTIP.

(2)

The value of the unvested share-based awards was calculated based on the closing price of the Company’s Common Shares on the TSX on December 30, 2022, which was C$0.73 (US$0.54). The Bank of Canada exchange rate as of December 30, 2022 was US$1.00 to C$1.3544.

(3)

The option was granted on June 14, 2021 with an exercise price in Canadian dollars, C$5.28. The option vests in three annual increments beginning June 14, 2022.

(4)

The option was granted on December 16, 2021 with an exercise price in Canadian dollars, C$1.30. The option vests equally in four quarterly increments beginning March 16, 2022.

(5)

Includes 97,500 shares remaining subject to an initial grant of 97,500 RSUs granted on February 11, 2022. These shares vest equally in three annual increments beginning on February 11, 2023.

(6)

Includes 425,000 remaining subject to an initial grant of 850,000 RSUs granted on August 2, 2022. These shares vest equally in two annual installments beginning on December 31, 2022. These shares vest in full on December 31, 2023.

(7)

The option was granted on February 11, 2022 with an exercise price in Canadian dollars, C$1.98. The option vests in three annual increments beginning February 11, 2023.

(8)

The option was granted on June 17, 2022 with an exercise price in Canadian dollars, C$0.59. The first tranche of the option vests on June 18, 2023. The remaining 600,000 shares are cancelled as of December 30, 2022.

(9)

The option was granted on March 26, 2020 with an exercise price in Canadian dollars, C$6.76. The option vests equally in four annual increments beginning on March 26, 2021.

(10)

The option was granted on March 26, 2021 with an exercise price in Canadian dollars, C$5.91. The option vests equally in four annual increments beginning on March 26, 2022.

(11)

The option was granted on February 11, 2022 with an exercise price in Canadian dollars, C$1.98. The option vests equally in three annual increments beginning February 11, 2023.

(12)

Includes 6,375 remaining subject to an initial grant of 12,751 RSUs granted on March 26, 2020. These shares vest equally in four annual increments beginning March 26, 2021.

(13)

Includes 19,448 remaining subject to an initial grant of 25,931 RSUs granted on March 26, 2021. These shares vest equally in four annual increments beginning March 26, 2022.

(14)

Includes 56,250 remaining subject to an initial grant of 56,250 RSUs granted February 11, 2022. These shares vest equally in three annual increments beginning February 11, 2023.

(15)

The option was granted on February 11, 2022 with an exercise price in Canadian dollars, C$1.98. The option vests in three annual increments beginning February 11, 2023.

(16)

Includes 33,113 remaining subject to an initial grant of 49,669 RSUs granted on November 19, 2021. These shares vest equally in three annual increments beginning on November 19, 2022.

(17)

Includes 37,500 remaining subject to an initial grant of 37,500 RSUs granted on February 11, 2022. These shares vest equally in three annual increments beginning on February 11, 2023.

(1)

On April 25, 2022, Mr. Booysen ceased serving as an executive officer of the Company and the terms of his employment agreement are no longer in effect.

(2)

On December 30, 2022, Mr. Gould ceased serving as an executive officer of the Company and the terms of his employment agreement are no longer in effect

(3)

Options and awards granted under the Legacy Option Plan and LTIP contain provisions allowing for the exercise, in certain circumstances, of options following termination (other than by reason of death, disability, retirement or for cause). Under the LTIP, in the event that any transaction resulting in a change in control occurs, outstanding awards will terminate upon the effective time of such change in control unless provision is made in connection with the transaction for the continuation or assumption of such awards by, or for the issuance therefor of substitute awards of, the surviving or successor entity or a parent thereof. Subject to the provisions of the LTIP, certain awards that terminate at the effective time of the change of control shall become fully vested and exercisable immediately before such effective time.

*

Ms. Birch resigned as director effective December 6, 2022, and Mr. Saunders resigned as director effective August 10, 2022.

(1)

Cash fees earned by non-employee directors. Includes director payments earned for the fiscal year ended December 31, 2022. Payments made in 2023 for services rendered in 2022 are also included.

(2)

The amounts reported in the Stock Awards and Option Awards columns reflect aggregate grant date fair value computed in accordance with ASC Topic 718, Compensation—Stock Compensation. These amounts reflect the Company’s calculation of the value of these awards at the grant date and do not necessarily correspond to the actual value that may ultimately be realized by the director. Assumptions used in the calculation of these amounts for 2022 are as follows: expected volatility – 83.0%-86.0%; expected term – 5.5-7.5 years; risk-free interest rate – 1.8%-3.3%; value of underlying shares - $0.44-$1.56; dividend yield – 0%. Assumptions used in the calculation of these amounts for 2021 are included in Note 14 to the Company’s audited consolidated financial statements for the fiscal year ended December 31, 2021, which were included in the Annual Report on Form 10-K.

(3)

Please see “Executive Compensation - Summary Compensation Table for 2022” above.

(1)

As at December 31, 2022, securities remained reserved for issuance under the Legacy Option Plan and LTIP.

(2)

The LTIP provides that the total number of Common Shares reserved and available for issuance pursuant to Awards granted ‎under the LTIP shall not exceed the number of Common Shares equal to ten percent (10%) of the total issued ‎and outstanding Common Shares from time to time (assuming the conversion of the outstanding PVS into Common ‎Shares) less any Common Shares that are issuable pursuant to the Legacy Option Plan (previously defined as the “Share Pool”).

(3)

Percentages based on 151,847,904 Common Shares and nil PVS issued and outstanding as of December 31, 2022.

(4)

The exercise price of certain awards are in Canadian dollars and have been converted to United States dollars as of the applicable grant date.

(5)

On close of the Company’s acquisition of Abacus Health Products, Inc., the Company issued replacement stock options (“Replacement Options”) that were exercisable to purchase an aggregate of ‎1,437,953 Common Shares (in lieu of shares of Abacus Health Products, Inc.). As of December 31, 2022, there are Replacement Options outstanding exercisable to purchase an aggregate of ‎69,843 Common Shares. The weighted average exercise price of the Replacement Options outstanding as at December 31, 2022 was $3.64.

1.

Independence

2.

Leadership in Corporate Strategy

3.

Management of Risk

4.

Approach to Corporate Governance

5.

Oversight of Management

6.

Succession Planning

7.

Expectations and Responsibilities of Board Members

(a)

Commitment and Attendance

(b)

Participation in Meetings

(c)

Financial Knowledge

(d)

Other Directorships

(e)

Contact with Management

(f)

Confidentiality

(g)

Preparation for Meetings

8.

Shareholder Communications and Disclosure

9.

Integrity of Corporate Control and Management Information Systems

10.

Legal Requirements

11.

Board Delegation to Committees

12.

Limitation

13.

Assessments

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At our company, authenticity is at the core of everything we do. The products we create and our impact on the world should align with our values and purpose. That’s why we decided to become a B Corp.

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B Corp certification allows us to cultivate a business ecosystem that prioritizes social and environmental responsibility just as much as financial success. By joining this community of like-minded companies, we can measure and manage our impact and hold ourselves accountable to the highest transparency and performance standards.

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Becoming a B Corp reflects our commitment to building a better world through business. We are proud to be part of an ecosystem that drives positive change and makes a tangible difference in communities and the environment.

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Charlotte’s Web is on track to significantly increase our original certification score of 92.8. Charlotte’s Web remains as the largest certified CBD B Corp with the highest score among our peers.

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The B Corp movement has gained significant momentum since our certification date on August 2020, when we became the 3,500 company to certify. Today, there are over 6,500 certified B Corp companies globally.

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As part of our continuous improvement plan, Charlotte’s Web is developing a Climate Action plan to ensure continuous improvement across the supply chain and all areas of Environmental Impact.

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Along with the Climate Action plan, Charlotte’s Web is working on an environmental strategy pursuant to circularity and environmental stewardship. Over time, Charlotte’s Web will capitalize on opportunities to ensure that the company operates in an environmentally sound manner.

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In addition, we are developing a more robust supplier engagement framework to support our environmental objectives and traceability in our supply chain.

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Supporting our ongoing continuous improvement process is Charlotte’s Web’s B Team, a cross-functional team reporting to the CEO, COO, and Board of Directors.

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Charlotte’s Web recertifies August 28th, 2023.

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In 2022, all Charlotte’s Web tinctures that shipped to consumers were certified organic. Currently, 14% of Charlotte’s Web product portfolio is certified organic. We are on track toward many more of our products being certified organic by the end of 2023.

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In 2023, we are transitioning our legacy sleep, calm, and recovery gummies from conventional to organic, expanding our offering of organic certified products.

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Taking a Stand - HR 841 + Coalition for Access Now

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Charlotte’s Web pays time off for community service. Employees can take two days (sixteen hours) of paid time off to volunteer individually every year. In addition, we also host a company-wide day of service. Charlotte’s Web uses an app called KyndHub to track volunteer hours as well as charitable giving, gratitude, and acts of kindness done by our employees. In 2022, Charlotte’s Web employees donated over 1228 volunteer hours into our local communities.

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We raised hourly compensation to reflect a $20-hour minimum wage. Most employees make more than this.

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Starting January 1, 2023, Charlotte’s Web began offering a match of 100% of employee deferrals up to 3% of compensation plus 50% of employee deferrals between 3% –5% of compensation, for a maximum match of 4% of eligible compensation. Employer Safe Harbor Matching is 100% vested immediately. In conjunction, we established the Employee Emergency Assistance Fund for employees experiencing hardship

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Healthcare costs across the nation skyrocketed in 2022. Charlotte’s Web picked up the 13% increase in Health/Life/Dental/Vision benefits for employees. Employees experienced no increase.

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In 2022, Charlotte’s Web leadership implemented managerial training for all people leaders.

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We also implemented medical care and travel reimbursement for employees who must travel to another state to seek healthcare treatment if the proper healthcare is unavailable in their state.

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In addition, we implemented three additional holidays: Martin Luther King, Juneteenth, and a flex holiday of the employee’s choosing.

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Volunteer Committee – Compassion in Action

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Company employees volunteered 1223+hours in 2022

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On July 19, 2022, the Company declared a Corporate Day of Giving where employees participated in a pre-organized volunteer activity designed to benefit the surrounding community

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Employees are allotted 16 hours of volunteer time each calendar year.

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Veteran’s Committee – Team Calvary

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Key 2022 partnerships include:

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STEM & Women in Leadership:

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a cross-functional, roundtable team that generates, develops, and communicates new ideas and outreach programs for Empowering Women & Girls and fosters diversity and Inclusion at CW and within our communities.

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Key Partner: STEM Generation

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Employee Assistance Fund - Continued support for employees in need.

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Employee Policy Committee

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Allyship – supporting colleagues from historically marginalized communities to advance opportunities, build partnerships, raise awareness, offer mentoring, and advocate on behalf of marginalized coworkers.

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Equity - policies, processes, and programs that appreciate differences and create a fair, safe, and just working environment for staff.

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Diversity - age, race, ethnicity, gender identity, sexual orientation, physical or mental ability, neurocognition, and lived experience

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Inclusion - a culture where everyone feels their perspectives are valued.

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For 2023, Focus on: Equity and Allyship

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Ex. Conscious Alliance – 24,000 units donated to “serve the increased demand of food insecurity we are seeing due to the pandemic. With your support, we are able to bring healthy food and critical resources into underserved areas across the U.S., feeding kids and families who need it most.” - Conscious A.

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Adaptive Training Give-Away – In February 2022, we partnered with Adaptive Training Foundation to donate 5,414 products directly to veterans and the adaptive athlete community.

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Angle City Football Club + L.A. LGBTQ Center

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STEM Generation – focus on kids in Title 1 Schools ▪ Women’s Bean Project

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Women’s Bean Project

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The Great Rise

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Realm of Caring

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Hemp Research and Development at Charlotte’s Web

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Full List of Charlotte’s Web sponsored research.

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Adaptive Training Foundation

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High Fives Foundation

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Revital Colorado

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Irreverent Warriors

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Hero Grown

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Garden to Table, Boulder – Focus on Title 1 Schools

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From 2021 to 2022, we went from 510,180 lbs. of waste to 167,920 lbs. – a 67% decrease.

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Other programs

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Recycle/Compost/Efficiencies

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Realm of Caring – 10 years of support for the Realm of Caring community while furthering cannabinoid research

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Adaptive Training Foundation – 2022 marks our fifth year of support for this powerful and agile organization.

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High Fives Foundation – 2022 marks our fifth year of support for professional adaptive athletes

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Freedom Service Dogs – 2022 marks our fourth year of support for this far reaching

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Our company is dedicated to delivering the highest quality products to our customers. We have a rigorous research, testing, and product development approach to ensure our products are safe, effective, and meet the highest quality standards. We work with leading experts in the industry and conduct extensive testing and analysis at every stage of the product development process.

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Our quality assurance program is designed to ensure that every product we sell meets our strict quality standards. We have a team of dedicated quality assurance professionals who monitor every aspect of our production process, from sourcing raw materials to packaging and shipping. In addition, we use state-of-the-art testing equipment and techniques to verify our products’ purity, potency, and safety. We continuously evaluate and improve our processes to meet or exceed industry standards.

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Our commitment to our customers’ health and well-being drives our focus on quality. By delivering the highest quality products, we can positively impact our customers’ lives and contribute to the broader mission of promoting health and wellness.

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In 2022, Charlotte’s Web passed the annual ISO 17025 assessment to maintain accreditation. This accreditation gives our customers assurance that results from our in-house lab can be trusted.

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In 2022, we saved an estimated $393,000 by testing samples in-house instead of at third-party labs. This accounts for lab costs and salaries; meaning, if the QC lab did not exist, the company would have spent an additional $393,000 last year.

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In 2022, four new methods were developed: in-process potency, residual solvents, UPLC potency, and olive oil ID. These methods allow us to perform more testing in-house, which saves more money and time.

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Initiated 70 in-house stability studies. Stability studies provide the data used to support product expiration dates. The company saves money by storing samples in temperature and humidity-controlled chambers at our facilities instead of paying for storage space at a third-party lab.

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We attained NSF Sport certification for our products to be used by MLB. This is in addition to the NSF certification we received and maintained for GMP.

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We maintain Organic and Kosher certifications through stringent quality control processes.

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We also maintain our US Hemp Authority Certification (The seal of stringent self-regulatory standards for the Hemp industry)