Charlotte’s Web Holdings (TSX:CWEB) (OTCQX:CWBHF) has today announced that it is extending its research initiative with The Center of Discovery in New York. The announcement has been positively greeted by investors, with Charlotte's Web stock up 3.3%.
Superior Hemp Varieties
The initiative aims to further develop research into improving hemp farming technologies in the area, by determining which hemp strains are best suited to the region's climate, so that Charlotte's Web can deliver the highest quality hemp product to its customers. Now in its third year, the research project has been instrumental in helping hemp farmers in the Eastern Appalachian Region cultivate superior hemp varieties and produce a greater yield.
Deanie Elsner, CEO of Charlotte's Web Holdings, expressed the company's commitment to producing superior hemp genetics for its cultivation operations in New York and the surrounding regions. As evidenced by Charlotte's Web stock performance, this initiative is very important to solidifying future success for the company in New York and the surrounding states with similar cultivation conditions.
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A Strong July
The announcement comes following a strong close to July for Charlotte's Web stock, which jumped as much as 67% in the five days of trading up to August 5 off the back of the company announcing a new deal with US grocery chain Kroger (NYSE:KR) to distribute hemp-derived CBD products throughout 1,350 stores in 22 states. Kroger becomes the fifth major retailer to carry Charlotte's Web products.
How Does This Compare with the Rest of the Market?
Despite a slumping cannabis market over the summer months, Charlotte's Web stock has mostly been bucking the trend set by its larger counterparts. While shares in CannTrust Holdings (TSX:TRST) (NYSE:CTST) continued to slide another 26% this morning following the discovery of a second regulatory infringement, Charlotte's Web shares have been performing admirably since the initial CannTrust scandal in June dragged the market down. This strong performance could be attributed to a significant rise in demand for CBD products, a series of positive retail partnerships and research collaborations, or most likely a culmination of these factors.
According to MarketRealist:
“Two analysts gave Charlotte’s Web Holdings a “strong-buy” rating, while five analysts polled by Thomson Reuters gave it a “buy” or equivalent rating. Charlotte’s Web Holdings received a mean consensus target price of 32.27 Canadian dollars, which represents a potential upside of 14.4%.”
Whether you're a keen speculator, first-time investor, or CBD enthusiast, one thing is for sure: Charlotte's Web stock is one to watch.
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