Charlotte’s Web Holdings (CWEB.T), Denver, Colorado-based company focused on creating hemp extract wellness products, announced today that it had signed a partnership agreement with Supplement Benefit Management, LLC (SBM), a Colorado-based company providing voluntary “bolt-on” benefit offering targeting specific health and wellness areas for humans and pets as part of employer sponsored employee benefit plans.
Starting in 2022, the deal enables employers to directly enroll in the SBM program and pick their desired level of coverage. Employees can then opt-in and gain access to the program via MySBM app. SBM anticipates up to 50,000 employees will tap into the program within 12 months.
SBM chief commercial officer, Bryan Perry, commented, “With almost 4,000 CBD brands for sale in the U.S., we are selecting Charlotte’s Web as our flagship full-spectrum hemp extract offering.”
Disability claims for mental illness are the fastest growing claim type in Canada, costing our economy $20.0 billion CAD a year due to workplace losses, which equates to almost $1,500 per year per employee.
With global lost productivity costing the world economy approximately $1.0 trillion due to anxiety and depression, employers are desperate to find effective methods in preventative measures and natural treatments that keep their workers at the wheel and happy.
Hemp oil and CBD extracts, provide an economical option for employers and potentially effective solutions for employees suffering from anxiety and depression.
According to a 2019 study, hemp oil has a calming effect on the central nervous system. Of the 72 subjects involved in the study who had anxiety or sleep disorder, researchers found that hemp oil reduced anxiety in 79.2% of the participants and improved sleep quality in 66.7%.
CBD oil is known to treat pain and inflammation, reduce symptoms of anxiety, reduce cancer-related symptoms, help alleviate neurological disorder symptoms such as seizures and improve heart health.
Rodney Nuss, SBM chief operating officer, added, “Through this program, product experience data reveals where natural care and cost choices produce better results for both employers and employees. Employee engagement can be some employers’ best-practice solution for controlling costs and improving health outcomes. Now employers have the option to add hemp-based wellness coverage with a built-in employee engagement platform to support a healthy workforce and healthy company.”
The global hemp oil market is expected to reach $1.25 billion USD by 2026 at a CAGR of 37.3% from 2021. The CBD oil global market is expected to grow at a CAGR of 16.8% to reach $17.94 billion in 2030.
CWEB currently has five patented hemp cultivars in its portfolio and more than 23,000 unique retail outlets.
The company announced at the beginning of July that its full spectrum “Original Formula” CBD had passed validation in CWEB’s Novel Food applications from the Food Standards Agency in the United Kingdom.
CWEB reported $14.50 million CAD in cash and cash equivalents as of March 31, 2022. During the three months leading up to March 31, 2022, the company brought in revenues of $19.36 million with a net loss totalling $8.63 million or ($0.06) per share.
The company currently trades at $0.59 per share, 56.62% down YTD, for a market cap of $85.64 million.
CWEB’s next earnings report is estimated to be August 16, 2022 with a consensus EPS forecast of ($0.04) compared to ($0.03) last year for the same period.
–Gaalen Engen
