Exclusive Agreement to support Chinese interest in hemp extracts

Charlotte's Web Holdings, Inc. ("Charlotte's Web," "CW" or the "Company"), America's market leader in full-spectrum hemp extract CBD products, has signed an exclusive distribution agreement (the "Agreement") with Energy Hemp Biotechnology Ltd., ("Energy Hemp") in Hong Kong, China.

Under the terms of the Agreement, Energy Hemp will have exclusive distribution rights for Charlotte's Web line of THC-free broad-spectrum CBD products within the Greater China territory with initial availability planned for Hong Kong, Taiwan and Macao. Product SKUs will include gummies, capsules and oil tinctures, with plans to extend offerings over time. A flagship Charlotte's Web retail store, owned and operated by Energy Hemp is planned for Hong Kong in 2023. 

China has a large aging population and CBD hemp extracts are often sought to help alleviate some of the discomforts of old age.  In addition, hemp extract products may help support sleep and daily stress among the younger generations of Chinese that are managing high-pressure lives. In the coming months, Energy Hemp plans to launch a direct-to-consumer e-commerce web store to service the territories of Hong Kong, Taiwan and Macau, providing much of the Chinese population with access to the wellness benefits of Charlotte's Web market-leading products.

"We have been developing this opportunity with Energy Hemp for some time and are proud to announce this new partnership to launch into Greater China," said Jacques Tortoroli, Chief Executive Officer of Charlotte's Web. "This agreement is another significant example of Charlotte's Web's international expansion through an asset-light model with strategic local and regional partners - particularly in Greater China where hemp has been a vital part of its ancient cultural and medicinal history. It's critical to have a trusted regional partner that can bridge the plant's legacy with Charlotte's Web's commitment to innovation and quality for consumers, partners, and the Chinese business environment. I look forward to a long-term relationship, including working together on efforts to support hemp policy reform in mainland China to enable market access there."

Energy Hemp management is the same team that pioneered China's cigar and luxury goods market with Davidoff brand of Switzerland; one of the most welcomed cigar brands in China.  Energy Hemp management includes executives from stem cell, neuron cells R&D and products; skincare, supplement, food R&D and products; FMCG market channel.

"We are always seeking category brand leaders to introduce to the Chinese markets and are excited to bring Charlotte's Web CBD wellness to the Chinese populations," said Eric SZE Li Ping, president of Energy Hemp Biotechnology Ltd. "We have a strong track record of introducing and establishing markets in China for leading international brands. As the leading global CBD brand, Charlotte's Web is an excellent fit with its extract reputation and consumer trust."

In addition to the pending eCommerce web store presence, plans are underway for future retail presence for consumers in Hong Kong, Taiwan and Macau.

Energy Hemp Biotechnology Limited is a Hong Kong-based private limited company established in 2016. The company was one of the earliest hemp platforms in Asia to focus on the development and application of hemp products.  Its product line covers hemp-based dietary food, skincare, beverages, leisure products and other aspects of life. The company is the agency for a variety of hemp products from the United States of America and also has self-developed product series, such as health series, skincare series, and beverage series.  Energy Hemp is also a member of the China Narcotic Drug Association, a State-level policy-making entity, guiding the future of the hemp market in China.

Energy Hemp Biotechnology Limited is the only designated Asia partner of Charlotte's Web.

Charlotte's Web Holdings, Inc., a Certified B Corporation headquartered in Denver, is the market leader in innovative hemp extract wellness products under a family of brands which includes Charlotte's Web™, CBD Medic™, CBD Clinic™, and Harmony Hemp™. Charlotte's Web branded premium quality products start with proprietary hemp genetics that are 100-percent American farm -grown using organic and regenerative cultivation practices. The Company's hemp extracts have naturally occurring botanical compounds including cannabidiol ("CBD"), CBC, CBG, terpenes, flavonoids, and other beneficial compounds. The Company's CW Labs R&D division advances hemp science at two centers of excellence in Louisville, Colorado, and the Hauptmann Woodward Research Institute at the University at Buffalo, part of the State University of New York (SUNY) network. Web product categories include full-spectrum hemp CBD oil tinctures (liquid products), CBD gummies (sleep, stress, exercise recovery), CBD capsules, CBD topical creams and lotions, as well as CBD pet products for dogs.  Through its vertically integrated business model, Charlotte's Web maintains stringent control over product quality and consistency with 20+ product lot testing for quality assurance. Charlotte's Web products are distributed to more than 15,000 retail, over 8,000 health care practitioners, and online through the Company's website at www.CharlottesWeb.com. Charlotte's Web's mission is "To unleash the healing powers of botanicals with compassion and science, benefitting the planet and all who live upon it."

Certain information in this news release constitutes forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively, ‎‎"forward-looking information"). In some cases, but not necessarily in all cases, forward looking information can be identified by the ‎use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", ‎‎"is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and ‎phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be ‎achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or ‎circumstances contain forward-looking information. ‎Specifically, this news release contains forward-looking information relating to, among others: the future of Charlotte's Web and the impacts of management changes.

Statements containing forward-looking information are not historical facts but instead represent management's current ‎expectations, estimates and projections regarding the future of our business, future plans, strategies, projections, anticipated events ‎and trends, the economy and other future conditions. Forward-looking information is necessarily based on a number of opinions, ‎assumptions and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to ‎known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, ‎performance or achievements to be materially different from those expressed or implied by such forward-looking information. The material factors and assumptions used to develop the forward-looking information herein include, but are not limited to, the following: the impact of the COVID-19 pandemic; the regulatory climate in which the Company currently operates and may in the future operate; consumer interest in CBD; successful sales of the Company's products; and the success of sales and marketing activities. Important factors that could cause actual results and financial condition to differ materially from those indicated in the forward-looking information include, among others, the factors discussed throughout the "Risk Factors" section of the Company's most recently filed Annual Report on Form 10-K for the year ended December 31, 2021 available on www.SEDAR.com and www.sec.gov , and other risk factors contained in other filings with the Securities and Exchange Commission available on www.sec.gov and filings with Canadian securities regulatory authorities available on www.sedar.com. Except as required by applicable securities laws, the Company undertakes no obligation to publicly update any forward-looking information, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.