Shares of cannabidiol (CBD) products specialist Charlotte's Web Holdings (OTC:CWBHF) 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.
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.
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."
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.