Charlotte’s Web CBD founders move to block board nominees

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In the wake of revenue and stock price declines, the founders of Colorado-based CBD and hemp company Charlotte’s Web Holdings want to rejoin its board of directors and block the appointment of four nominees.

The company’s founders, brothers Jesse and Joel Stanley, urged fellow shareholders in a news release to join a group of “concerned shareholders,” which includes Major League Baseball, in withholding votes for four of six new director nominees ahead of Charlotte’s Web’s annual general meeting scheduled for June 15.

The concerned shareholders own 24.66% of the company’s shares, according to the release.

Charlotte’s Web was chosen as the first CBD sponsor of Major League Baseball last October.

The Stanley brothers chose to go public with their concerns after they said the company’s board didn’t respond to their request that the current four nominees not stand for election.

The Stanley brothers also asked that they and two other nominees stand for election instead.

“This has forced the Concerned Shareholders to make their concerns public,” the release noted.

Joel Stanley departed the board of Charlotte’s Web in March 2021.

Since then, the founders said, the company’s stock price (Toronto Stock Exchange: CWEB; U.S. over-the-counter markets: CWBHF) has declined by 95% and revenue by 22.8%.

“The significant cash burn rate with decreasing revenues must end immediately,” Jesse Stanley said in a statement.

“The current leadership blames general industry decline and regulatory headwinds to avoid taking responsibility for their actions.

“The truth is that the actions of this Board have clearly contributed to the destruction of shareholder value.’