Charlotte’s Web stock is down this week despite the CBD firm announcing the figures for its 2019 harvest, which saw an increase in yield per acre, total dried biomass, and CBD potency.
Strong Harvest Yield
Charlotte’s Web Holdings (TSX:CWEB) (OTCQX:CWBHF), one of the leading CBD companies in the US, reported the results of its 2019 hemp harvest, the sole source of its full-spectrum extracts, which are high in naturally occurring cannabidiol, on March 4. Compared with the 2018 harvest, the company saw a 245% increase in total dried biomass to 2.34 million lbs, while yield per acre was up 10% and potency up 22%. The total harvest is estimated at 36 thousand kg, with a 33% reduction in cost per milligram. Charlotte’s Web stock is currently trading for $6.75.
“We are very pleased with the results of the 2019 harvest, achieving yield and potency levels that surpassed our expectations. This reflects the tremendous expertise we have gained in hemp cultivation over the last six years,” said Deanie Elsner, CEO of Charlotte’s Web Holdings.
“More than half of our harvest was certified organic in 2019 with the remaining acres in transition. We are well on our way to becoming one of the largest providers of certified organic hemp CBD extract in the country.” The 2019 harvest was large enough that it is expected to last the company through to 2022; however, Charlotte’s Web stock is actually down around 1.75% today.
Charlotte’s Web Stock Awaits Regulatory Clarity
The stock has been very prone to volatility as a result of regulatory uncertainty. The company has said that it was heartened by recent comments from FDA Commissioner Dr. Stephen Hahn, who said that it has become clear that American people are increasing their CBD usage and that, “we’re not going to be able to say, ‘you can’t use these products.'”
Charlotte’s Web stock saw double-digit gains back in January after a bipartisan coalition of lawmakers introduced a new bill that would allow for CBD to be legally marketed as a dietary supplement. The bill will now be referred to the Agriculture and Energy and Commerce Committees, and it may be some months before it comes into force.
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