Charlotte's Web Confirms Emerging Growth Company Status in 8-K

TL;DR

**Charlotte's Web is an emerging growth company, meaning less SEC scrutiny.**

AI Summary

Charlotte's Web Holdings, Inc. filed an 8-K on January 2, 2024, reporting an 'Other Event' that occurred on December 28, 2023. This filing indicates that the company is an 'emerging growth company' as defined by the SEC. For investors, this means Charlotte's Web may have fewer reporting requirements, which could impact the transparency and frequency of financial information available, potentially increasing investment risk due to less public disclosure.

Why It Matters

This filing confirms Charlotte's Web Holdings, Inc. operates with reduced regulatory burdens as an emerging growth company, which can affect the depth of information available to investors.

Risk Assessment

Risk Level: medium — The 'emerging growth company' status allows for fewer disclosures, potentially increasing information asymmetry and risk for investors.

Analyst Insight

Investors should be aware that Charlotte's Web Holdings, Inc.'s 'emerging growth company' status means they might receive less detailed financial and operational information compared to larger, more established companies, and should factor this into their due diligence.

Key Players & Entities

• Charlotte's Web Holdings, Inc. (company) — the registrant filing the 8-K
• December 28, 2023 (date) — date of earliest event reported
• January 2, 2024 (date) — date the 8-K was filed
• 700 Tech Court Louisville, Colorado 80027 (address) — principal executive offices of Charlotte's Web Holdings, Inc.

FAQ

Key Financial Figures

• $1,000,000 — "), as lender, where the Company loaned $1,000,000 to one of the founders of the Company.

Filing Documents

• charlotte8k.htm (8-K) — 26KB
• 0001279569-24-000004.txt ( ) — 190KB
• cwbhf-20231228.xsd (EX-101.SCH) — 3KB
• cwbhf-20231228_lab.xml (EX-101.LAB) — 33KB
• cwbhf-20231228_pre.xml (EX-101.PRE) — 22KB
• charlotte8k_htm.xml (XML) — 3KB

01. Other Events

Item 8.01. Other Events. On November 13, 2020, Charlotte's Web Holdings, Inc. (the "Company") entered into a secured promissory note ("Note"), as lender, where the Company loaned $1,000,000 to one of the founders of the Company. The note receivable is secured by equity instruments with such founder of the Company. On March 22, 2022, the maturity date of the Note was extended, as allowed under the terms of the Note, resulting in an extension of the maturity date to November 13, 2023 ("First Amendment"). Effective December 28, 2023, the Company entered into a second amendment of the Note ("Second Amendment") to extend the maturity date of the Note until November 13, 2024.

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits: Exhibit No. Description 104 Cover Page Interactive Data File (embedded within the Inline XBRL document

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CHARLOTTE'S WEB HOLDINGS, INC. Date: January 2, 2024 By: /s/ Stephen Rogers Stephen Rogers Senior Vice President - General Counsel and Corporate Secretary

View Full Filing

View this 8-K filing on SEC EDGAR