Shortly after discussing the appeal in owning Charlotte’s Web Holdings (CWBHF), the company announced a secondary offering from selling shareholders. The offering is concerning since the company is still in the early stages of development, but the stock price is a better deal now after taking the hit from this secondary.
After disclosing that the company has an interesting position in the CBD pet market forecast to surge to a market size of $1.16 billion by 2022, Charlotte’s Web announced that selling shareholders were unloading 7 million shares at a price of C$20.00. The deal is ~$15 or about $10 below the recent highs.
The selling shareholders have another 15% allotted to the deal that will in total raise C$161 million for early investors. The diluted share count is around 106 million.
The stock now has a market valuation down at