Charlotte’s Web, Tilray sign Canadian manufacturing, distribution deal for CBD

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Canadian cannabis producer Tilray Brands and Charlotte’s Web Holdings entered a “strategic alliance” to license, manufacture and distribute the Colorado-based manufacturer’s hemp-derived CBD products in Canada.

According to a Wednesday news release, Tilray will manufacture Charlotte’s Web products in Canada using the company’s “proprietary hemp biomass, harvested from Canadian-grown hemp cultivars,” then make those products available through Tilray’s distribution network.

“Previously, Charlotte’s Web hemp extract had only been available to Canadian families that qualified for a special access medical exemption through Health Canada for specific need-state,” Charlotte’s Web said in a statement.

The products will be available in Canada starting in early 2023.

Charlotte’s Web’s hemp oil tinctures will be available through Tilray’s medical cannabis distribution channel in the spring, followed by adult-use distribution, a company spokesperson told MJBizDaily.

“Gummies and topicals will come to adult-use channels around summertime,” the spokesperson said via email.

“Establishing Charlotte’s Web’s supply chain and distribution in Canada also prepares for the contemplated introduction of new natural health products regulations and potential ability to sell CBD products through traditional pharmacies in Canada,” according to the release.

Canadian cannabis regulator Health Canada is weighing a new regulatory approach to CBD that could lead to nonprescription CBD products being sold in pharmacies or other retailers.

In a statement, Charlotte’s Web co-founder and Chief Operating Officer Jared Stanley said the company’s proprietary hemp varieties are registered on Health Canada’s list of approved hemp cultivars in 2021.

Charlotte’s Web and Tilray did not disclose the value of their agreement.

Charlotte’s Web recently signed a sponsorship deal with Major League Baseball, making the company the league’s “official CBD” partner.

Charlotte’s Web shares trade as CWEB on the Toronto Stock Exchange and as CWBHF on the U.S. over-the-counter markets.

Tilray shares trade as TLRY on the Nasdaq and the TSX.