Charlotte’s Web forms joint venture with BAT, AJNA BioSciences

Charlotte’s Web Holdings (CWBHF) announced it has formed a joint venture with AJNA BioSciences, a subsidiary of British American Tobacco (BTI), which is contributing $10M as the JV’s initial investor. AJNA is partially owned and was co-founded by its president, Joel Stanley, the former CEO and Chairman of the board of Charlotte’s Web, together with certain other founding members of CW. The JV was established to pursue FDA-approval for a novel botanical drug to target a neurological condition identified by the JV leadership team, which will be comprised of CW, AJNA and BAT representatives. This novel botanical drug will be developed from certain proprietary hemp genetics of CW. The JV plans to engage with the FDA to file an Investigational New Drug application and commence Phase I clinical development in 2023. BAT holds a 20% equity interest in the form of preferred units following its $10M investment and has the right to participate in future equity issuances to maintain its pro rata equity position. Charlotte’s Web and AJNA each hold 40% of the JV’s voting common units. This is in consideration of contribution by CW of a license permitting the JV to use certain proprietary hemp intellectual properties, including clinical and consumer data, and by AJNA of laboratory and regulatory services, clinical expertise and the provision of clinical services. The JV plans to use the initial $10M investment for the clinical development of a novel hemp botanical IND.