What happened
Cannabidiol (CBD) products specialist Charlotte's Web Holdings (CWBHF -0.32%) delivered some good news from across the ocean today, and investors are impressed. After announcing Monday that it had signed a new distribution deal overseas, the company saw its stock price rise by over 4%, on an otherwise down day for the equity markets.
So what
With obvious delight, Charlotte's Web announced that it has signed an exclusive product distribution agreement in the U.K. with a British peer, the wonderfully named Savage Cabbage. The two companies have been partners for years, as Savage Cabbage has been the official distributor of Charlotte's Web products since 2016.
Image source: Getty Images.
Under the terms of the new deal, this relationship will continue on a formal basis. Savage Cabbage will keep offering its very wide range of Charlotte's Web goods, which it can also ship to 31 European countries both within and outside the European Union.
Charlotte's Web did not disclose the time period, if any, or the financial particulars of the new arrangement.
The company did quote its CEO, Jacques Tortoroli, as saying, "We are pleased to extend our relationship with exclusivity for one of our long-standing international partners."
Now what
Several years ago, CBD products were trendy, with numerous celebrities going public about their use of such goods. As the trend has faded, CBD makers have struggled, so any positive news is greeted very warmly by the market.
Locking in a solid distribution deal in a big market is always a good development, and investors were fully justified in pushing Charlotte's Web's stock price up on Monday.
