British American Tobacco Converts C$75.3M Debenture, Invests US$10M in Charlotte’s Web
BTI•British American Tobacco’s unit converted C$75.3 million principal plus C$14.2 million accrued interest of a Charlotte’s Web debenture into 95.28 million shares at C$0.94 per share. It also subscribed US$10 million for 14.66 million additional shares at the same price to fund participation in a CMMI Medicare CBD pilot program pending TSX approval.
1. Transaction Structure
BAT’s subsidiary amended and converted C$75.3 million principal plus C$14.2 million accrued interest of a convertible debenture into 95.28 million Charlotte’s Web common shares at C$0.94 per share and completed a concurrent US$10 million private placement at the same price for 14.66 million additional shares, subject to TSX approval.
2. Debenture Conversion Details
The original C$75.34 million debenture issued in November 2022 and accrued C$14.22 million interest were fully converted to equity, totaling C$89.56 million (approximately US$65 million) and resulting in the issuance of 95,281,277 common shares to BAT.
3. Private Placement Summary
BAT’s additional US$10 million subscription raised C$13.8 million through 14,662,765 shares at C$0.94 per share, with net proceeds designated to support Charlotte’s Web’s participation in the CMMI Medicare CBD pilot program and other medical channel initiatives.
4. Strategic and Operational Implications
The transaction strengthens Charlotte’s Web’s balance sheet, enhances financial flexibility for growth in the medical channel, and increases BAT’s strategic exposure to the hemp-derived CBD market pending regulatory approvals.
