British American Tobacco ( BAT ) has agreed to a restructuring agreement with Charlotte’s Web Holdings ( CW), which significantly increases the tobacco giant’s ownership stake while removing the CBD manufacturer’s biggest liability.
The action comes as publicly traded CW reported losses of about$ 30 million in 2025 compared to about$ 50 million in overall revenue. The numbers remain fundamentally the same as they were in 2024.
By turning the$ 65 million in debt into stocks, Charlotte’s Web Holdings avoids any long-term responsibilities while significantly reducing existing shareholders while adding$ 10 million in new income. With the combined transaction, about 110 million new shares are issued.
Priorities
The additional liquidity, according to Charlotte’s Web, may support near-term goals like expanding the company’s clinical pipeline and participating in a pilot program for the United States Centers for Medicare & Medicaid Services.
Pitcher will become the largest shareholder in Charlotte’s Web after the deal is finalized, holding about 40 % of Charlotte’s Web on a non-diluted schedule. Prior to the purchase in 2022, BAT had 20 %.
The equity change strengthens BAT’s position as a long-term corporate sponsor with the authority to nominate managers in percentage to its play, CW emphasized.
undergoing clinical care
CEO Bill Morachnick referred to CW’s involvement in the Medicare program as” a landmark discovery, taking physician-authorized CBD access to the healthcare system for seniors” in a press release outlining the agency’s 2025 economic performance.
We see this as a preliminary step toward expanding the scope of Medicare’s 67 million recipients ‘ possible inclusion into other categories. Our economy is at α crucial tμrning poinƫ, he said, along with thȩ Natiσnal Executive Order αnd growing bipartisan support for α moral national platform.
With operations in more than 180 countries and a market value of between$ 80 and$ 100 billion, BAT is one of the largest consumer goods companies in the world. It is also looking into thc while being injected into tobacco and moving toward “reduced-risk” products like vapes, heated tobacco, and dental nicotine.
