Charlotte’s Web Holdings, Inc. (PNK:CWBHF) Q4 2022 Earnings Call Transcript

Scott Fortune : I appreciate the color on the detail, Jacques. And then last one for me, for Jared. Just to touch base, it’s nice to see the momentum starting to move forward. Obviously, THC and CBD needs a lot more lobbying and Congress for them to push forward. The pressure Delta-8 THC out there, it seems like the legislators are willing to act now. Can you just kind of step us through with the new congressional measures and that leading towards the ’23 Farm Bill, you didn’t mention that, but kind of some of the priorities that you think can really open up the opportunity for the CB industry with the Farm Bill as they kind of address the shortcomings of the 2018 Farm Bill just a little bit of color on kind of what you see kind of on addressing in the Farm Bill going forward here?

Jared Stanley : Sure. Scott, first, we are optimistic in the Farm Bill, but I want to first say it’s not the only way. We’ve been — the most engagement that we’ve had in Congress has been with Griffith staff. This is the staff that requested our safety and tox studies. And when the FDA made their position, it was — obviously, this is the co-author of what was H.R. 841, which has now reintroduced as H.R. 1629, which is the Dietary Supplement Bill and Griffith staff is also behind H.R. 1628, the Food and Beverage Bill. What’s really kind of been clear to us in this engagement is that Griffith staff has confirmed that energy and commerce will not be jurisdiction on FDA regulation to the agricultural committee. So when you zoom out, this is the same reason why the 2018 Farm Bill really focused on the definitions of CBD and hemp, but didn’t go on to regulate the category.

There is a way, and the only way this goes through the Farm Bill in the house is that the energy and commerce support a bill and it’s made in order to the rules committee. So that’s the house side of the Farm Bill and then the Senate, it could be added as a floor and then to the Farm Bill. But in either case, if it’s not in both chambers, bills, it’s not going into conference and it could be dropped. What we’re seeing is actually the more likely path is either attaching to another energy and commerce or help committee bill, possibly a dietary supplement legislation or any end of the year spending bill. But regardless, we’re looking at all avenues and trying to push all options.

Operator: And we have no further questions from our analysts. I will turn the call back over to Cory for closing remarks.

Cory Pala: Well, thank you, Julie, and thank you, everyone, for taking the time to listen to our earnings call today, and we will look forward to speaking to you again in mid-May following the publishing of our first quarter results of 2023. Thank you.

Operator: Ladies and gentlemen, this concludes the conference call for today. We thank you for joining and ask that you may disconnect your lines. Thank you.