Charlotte's Web Holdings, Inc. (OTCQX: CWBHF) (TSX:CWEB) announced a $56.8 million investment from a subsidiary of BAT (NYSE: BTI) (LSE:BATS), which provides the company with incremental capital to fund growth initiatives, including the company's expanding portfolio of botanical wellness products.

BAT's investment has been made via a convertible debenture in the amount of $56.8 million. The debenture is currently convertible into a non-controlling equity stake in Charlotte's Web of approximately 19.9% and is convertible at BAT's discretion.

The investment provides substantial liquidity at an attractive cost of capital for Charlotte's Web. Upon closing of this investment, Charlotte's Web will have pro-forma cash and short-term investments of approximately $65 million.

Debenture Terms

The investment was made by BAT's subscription for an unsecured …

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