Please ensure Javascript is enabled for purposes of website accessibility

Why Charlotte's Web Holdings Stock Rose Then Fell Today

By Eric Volkman - Jun 29, 2021 at 5:40PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company signed a distribution and marketing deal with a fitness company.

What happened

Shares of cannabidiol (CBD) products specialist Charlotte's Web Holdings (CWBHF -3.57%) had an up-and-down Tuesday, inching up by 2.2% before closing down by 2.5%. Investors were reacting to a distribution and marketing deal announced by the company.

So what

Charlotte's Web said that it has signed a multiyear exclusive contract with privately held fitness company Life Time to put its products on the latter company's shelves. The agreement covers over 140 of the Lifecares stores located within Life Time's fitness centers throughout the U.S. Charlotte's Web CBD products will also be available in its new partner's online store.

A field of hemp plants.

Image source: Getty Images.

Additionally, the CBD company is to receive marketing support with in-club signage featuring its products. Charlotte's Web goods will also be displayed in Life Time's Experience Life magazine and on its website, and several are to be featured at selected Life Time athletic contests, including the Miami Marathon.

Charlotte's Web quoted its CEO Deanie Elsner as saying that the Life Time deal "aligns well with our expansion strategy to reach consumers in new environments across the U.S."

Now what

Charlotte's Web didn't specify the financial details of the arrangement, which is perhaps why investors traded down the stock slightly after that earlier burst of optimism. While it's always good for a brand to expand its reach (particularly in the challenging cannabis industry), without knowing the dollar amounts of this arrangement, it's hard to judge how advantageous it'll be for the company.


Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Charlotte's Web Holdings. The Motley Fool recommends Charlotte's Web. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Charlotte's Web Holdings, Inc. Stock Quote
Charlotte's Web Holdings, Inc.
$0.65 (-3.57%) $0.02

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/08/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.