What happened
Cannabidiol (CBD) specialist Charlotte's Web Holdings (CWBHF 1.30%) wasn't a special stock on Monday. It closed nearly 5% lower on the day, despite announcing a new product targeted at frontline healthcare workers.
So what
The new product is a CBD oil tincture (a tincture is the result of infusing something in a liquid). It is available in 10- or 30-millimeter sizes, each containing 25 milligrams of CBD. Suggested retail prices are $24.99 and $59.99, respectively.
CBD purportedly has medicinal and restorative properties. In contrast to tetrahydrocannabinol (THC) from marijuana, it does not get a user high.
Image source: Getty Images.
"As the CBD industry pioneer of full spectrum hemp CBD wellness products, the Company is expanding its product offerings for consumers seeking a THC-Free option," Charlotte's Web wrote in the press release trumpeting the new line.
"For example, the hundreds of thousands of daily heroes -- healthcare workers, fire fighters, police officers, civil service employees and many others -- who want the benefits of hemp CBD extracts without THC," it added.
Charlotte's Web cited a 1,119-respondent survey conducted by Mental Health America indicating that 86% of healthcare workers are coping with anxiety, while 76% are exhausted and burned out from their work.
Now what
It's indisputable that frontline workers need help dealing with the current stresses of their jobs. Yet CBD isn't a sufficiently mainstream product to capture a big part of this customer demographic, in my view. Going by Charlotte's Web's slide on Monday, investors might feel the same.
