Charlotte's Web Holdings, Inc., the market leader in hemp-derived CBD products, today jointly announced with Major League Baseball ("MLB"), a first-of-its-kind exclusive multi-year strategic partnership that opens increased CBD visibility to their professional athletes, millions of fans, and communities. The rigorous approval process that brought the two legacy brands together fills a major gap in the sports channel for an NSF Certified for Sport^® portfolio of CBD products for players and consumers demanding safe, natural options to support recovery, help keep calm under pressure, and help sleep cycles and focus.

Major League Baseball is now the first professional sports league to form a sponsorship agreement with a CBD company.  Charlotte's Web is now the first "Official CBD of Major League Baseball."  In June 2022, MLB officially opened the CBD category for the league and its Clubs, allowing sponsorships with CBD companies that are NSF Certified for Sport^®.

"As a leader in the CBD category, with products that provide health and wellness benefits, Charlotte's Web is a welcome addition to the MLB family, representing a landmark partnership in baseball and sports," said Noah Garden, MLB Chief Revenue Officer.  "Charlotte's Web products which receive the NSF Certified for Sport^® designation have met the highest safety standards and can be promoted across MLB events and media platforms.  We are excited about the possibilities this partnership offers as CBD becomes a more widely adopted part of the health and wellness regimen of our players and fans."

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The partnership celebrates the much-anticipated launch of Charlotte's Web SPORT – Daily Edge, the first broad-spectrum hemp-derived tincture to be Certified for Sport^® by NSF, the highly respected global third-party organization that establishes standards for safety, quality, sustainability, and performance and certifies manufacturers and products against them. Leveraging Charlotte's Web's scientific research, Current Good Manufacturing Practices (cGMP), and Certified B Corp principles, Daily Edge underwent strict independent testing to meet MLB's scientific benchmarks and no-banned substances policy uniquely. Daily Edge will feature the MLB silhouetted batter logo on its bottle and is the first product launch from the new Charlotte's Web^TM SPORT line, which will also include gummies, topicals, and oral sprays.

"NSF is proud to play a role in this historic next chapter of America's favorite pastime," said John Travis, Principal Technical Manager, NSF. "MLB showed great trust in the NSF mark earlier this year when it named NSF Certified for Sport^® as the standard CBD brands must meet in order to sponsor MLB and its teams. The Charlotte's Web and MLB partnership promotes clean sport and closely aligns with NSF's mission to improve human health worldwide."

The partnership makes MLB a strategic partner in Charlotte's Web's NSF-Certified for Sport^® line. It underscores the long-term value opportunity of entering the U.S. CBD market, which topped US$4.7 billion in total sales in 2021*. The inaugural Daily Edge tincture will launch via Charlotte's Web's eCommerce platform on Oct. 12, 2022, during the October 2022 Division Series with an exclusive run for the MLB Postseason. In 2023, the expanded product line will debut in retail sports and health and wellness channels. Through the partnership, Charlotte's Web will have a premiere brand presence at MLB's Jewel Events, including All-Star Week, Postseason, and the World Series presented by Capital One through marketing, media, and ballpark activations that connect to the league's fan base of over 180 million Americans.

This historic multi-year agreement is the first league-wide partnership for Charlotte's Web.

"We applaud MLB for being the first-mover in professional sports CBD and are thrilled to welcome their league as a respected strategic partner," said Jacques Tortoroli, CEO Charlotte's Web. "Bridging our industry-leading brands with science, innovation, and education, this pioneering partnership validates Charlotte's Web's core business principle and founding mission to open access to safe, quality and consistent CBD through our proprietary hemp genetics and industry-forging vision."

Both organizations share a purpose-focused mission and a passion for supporting their communities. They have committed to serving as Corporate Social Responsibility partners and advancing causes that promote quality of life for athletes and fans.

"Nature is the most intelligent and advanced technology system in our world, and when we work with nature for health and innovate through the lens of community care, we can truly redefine what it means to be well as an athlete. This is game-changing, and I am excited by what we can accomplish with the MLB partnership," said Jared Stanley, Co-Founder, and COO of Charlotte's Web.

In consideration for the exclusive marketing and ancillary rights provided to Charlotte's Web by MLB, Charlotte's Web (i) will issue 6,119,121 common shares of the Company to MLB, which represents approximately 4% of the outstanding common shares of the Company (ii) has agreed to certain revenue sharing rights on MLB/Charlotte's Web co-branded products, and (iii) agreed to make certain rights fee payments to MLB through December 31, 2025