Charlottes Web Holdings Inc (CWBHF) Exchange: OTCQX

Charlotte's Web Holdings, Inc., a Certified B Corporation headquartered in Boulder, Colorado, is the  market leader in the production and distribution of innovative hemp derived cannabidiol ("CBD")  wellness products under a family of brands which includes Charlotte's Web™, CBD Medic™, CBD Clinic™, and Harmony Hemp. The Company's premium quality products start with proprietary hemp genetics that are 100-percent American farm grown and manufactured into whole-plant hemp extracts containing a full spectrum of naturally occurring phytocannabinoids including CBD, CBC, CBG, terpenes, flavonoids and other beneficial hemp compounds. Charlotte's Web product categories include  CBD oil tinctures (liquid products), CBD gummies (sleep, stress, inflammation recovery), CBD capsules, CBD topical creams and lotions, as well as CBD pet products for dogs. Charlotte's Web is the number one CBD brand in the USA and is distributed through more than 22,000 retail locations, select distributors and online through the Company's website at www.CharlottesWeb.com. Charlotte's Web was founded by the Stanley Brothers with a mission to unleash the healing powers of botanicals through compassion and science, benefiting the planet and all who live upon it. Charlotte's Web is a socially and environmentally conscious company and is committed to using business as a force for good and a catalyst for innovation. The Company weighs sound business decisions with consideration for how its efforts affect its employees, customers, the environment, and diverse communities. The rate the Company pays for agricultural products reflects a fair and sustainable rate driving higher quality yield, encouraging regenerative farming practices, and supporting U.S. farming communities. Management believes that its socially oriented and environmentally responsible actions have a positive impact on its customers, suppliers, employees and stakeholders. Charlotte's Web donates a portion of its pre-tax earnings to charitable organizations. Subscribe to Charlotte's Web investor news. Shares of Charlotte's Web trade on the Toronto Stock Exchange (TSX) under the symbol "CWEB" and are quoted in U.S. Dollars in the United States on the OTCQX under the symbol "CWBHF." As of March 22, 2021 Charlotte's Web had 108,912,326 Common Shares outstanding and 77,243.34 Proportional Voting Shares convertible at 400:1 into Common Shares, for an effective equivalent totaling 139,809,661 Common Shares outstanding. Non-IFRS Measures Adjusted  earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is not a recognized performance measure under International Financial Reporting Standards ("IFRS"). Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to ‎similar measures presented by other issuers. ‎ The term EBITDA consists of net loss and excludes interest ("financing costs"), taxes, depreciation and amortization. Adjusted EBITDA also excludes share-based compensation, impairment of assets, acquisition costs, legal settlement costs, restructuring charges, and adjustments for fair value of biological assets, warrant liabilities, and stock appreciation rights. Adjusted EBITDA is included as a supplemental disclosure because Management believes that such measurement provides a better assessment of the Company's operations on a continuing basis by eliminating certain non-cash charges and charges or gains that are nonrecurring. The most directly comparable measure to Adjusted EBITDA calculated in accordance with IFRS is net loss. See "Adjusted EBITDA" in the MD&A for a reconciliation of Adjusted EBITDA to net loss. Three months ended Year ended December 31, December 31, U.S. $ millions 2020 2019 2020 2019 Net loss and comprehensive loss $ (14.7) $ (18.8) $ (47.2) $ (15.6) Depreciation of property and equipment and amortization of intangibles 3.0 1.4 9.8 4.0 Financing costs 0.3 0.1 1.3 0.3 Interest income — (0.1) (0.2) (1.0) Income tax expense (benefit) — (6.7) 6.3 (5.6) EBITDA $ (11.4) $ (24.1) $ (30.0) $ (17.9) Mark-to-market fair value of warrants and stock appreciation rights 1.9 (2.1) (11.4) (2.1) Fair value changes of biological assets, net (0.4) 0.4 — (0.2) Share-based compensation 1.6 1.7 5.9 3.0 Impairment of assets 5.8 13.9 8.0 15.5 Acquisition costs 0.2 — 3.9 — Legal settlement — — 2.1 — Restructuring charges 0.2 0.1 1.3 0.4 Adjusted EBITDA 1 $ (2.1) $ (10.1) $ (20.2) $ (1.3) 1 Adjusted EBITDA presented in prior periods has been reclassified to conform with the current period presentation to include Interest income as a reduction of EBITDA and Adjusted EBITDA.