Shares of Charlotte's Web Holdings (CWBHF 3.51%) surged more than 20% on Friday, furthering the CBD stock's ascent since the company announced a patent win on May 20.
Charlotte's Web is a leading producer and seller of hemp-derived cannabidiol (CBD) wellness products. Unlike marijuana, which can make people high, CBD is non-intoxicating. Instead, a growing number of people are using CBD for its perceived health benefits.
Charlotte's Web said on Wednesday that it earned a U.S. utility patent for a new hemp variety, called CW1AS1, which was created by its co-founder, Joel Stanley. and Senior Director of Cultivation R&D Bear Reel. "The patent takes Charlotte's Web's premier proprietary genetics to the next generation and builds a strong wall of protection around it and the products made from it," the company said in a press release.
Investors cheered to the news, and their optimism surrounding Charlotte's Web's patent grant appears to have fueled its stock's rise again on Friday.
Cannabidiol products are one of the fastest-growing segments of the cannabis industry, with retail CBD sales projected to exceed $24 billion in the U.S. alone by 2025, according to the Brightfield Group. As a leader in this rapidly expanding and potentially massive market -- and now, with patents helping to protect its popular products -- Charlotte's Web Holdings could continue to reward investors in the years ahead.