Mr. Cory Pala reports

CHARLOTTE'S WEB ANNOUNCES BOARD TRANSITION AS CO-FOUNDER JARED STANLEY DEEPENS FOCUS ON DEFLORIA

Charlotte's Web Holdings Inc. co-founder Jared Stanley has stepped down from the company's board of directors, effective June 3, 2026, to dedicate his full attention to his role as chief executive officer of DeFloria Inc., the clinical-stage botanical pharmaceutical company co-founded by Charlotte's Web. Mr. Stanley's decision is supported by management and the board.

A member of the founding family that created Charlotte's Web, Mr. Stanley has helped shape the company since its earliest days and has been instrumental in advancing its cultivation, genetics and regulatory initiatives. He will remain closely connected to Charlotte's Web and available to support and advise the company where its cultivation and regulatory work intersect with DeFloria's drug development. As a co-founder and shareholder in DeFloria, Charlotte's Web continues to participate directly in the progress of DeFloria's clinical-stage pipeline.

Mr. Stanley is also a representative on One Hemp, co-founded by Charlotte's Web, the national industry coalition advancing responsible federal hemp regulation and consumer protection, and will continue in that role.

"On behalf of the entire board and management team, we thank Jared for his vision and his many contributions as a founder of Charlotte's Web. Charlotte's Web and DeFloria are intertwined, and we fully support Jared as he turns his focus to advancing and financing DeFloria's clinical mission. We look forward to seeing both companies continue to grow and to serve the patients, families and shareholders who depend on them," said Angela McElwee, chair of the board of Charlotte's Web.

DeFloria: the opportunity

DeFloria is a Food and Drug Administration phase 2 clinical-stage botanical pharmaceutical company developing AJA001 oral solution, an investigational botanical drug being developed for irritability associated with autism spectrum disorder, a condition that currently lacks adequate approved treatment options. Formed in 2023 by Charlotte's Web and AJNA BioSciences PBC, with a subsidiary of British American Tobacco PLC as lead investor, DeFloria is advancing AJA001 through the U.S. Food and Drug Administration's botanical drug pathway using Charlotte's Web's proprietary full-spectrum hemp genetics.

The 2025 U.S. executive actions are expected to further support cannabinoid drug development by expanding research access, encouraging institutional investment and reducing barriers to pharmaceutical partnerships. As a co-founder and shareholder in DeFloria, Charlotte's Web is positioned to participate in this opportunity alongside its core botanical wellness business.

"Stepping back from the board allows me to put my full energy into DeFloria at a pivotal moment as we advance AJA001 through phase 2 and federal policy increasingly recognizes the therapeutic potential of cannabinoids. Charlotte's Web and DeFloria are deeply connected, and the progress we make at DeFloria is progress for Charlotte's Web and its shareholders," said Mr. Stanley, chief executive officer of DeFloria and co-founder of Charlotte's Web.

Following Mr. Stanley's resignation, the board will have six directors.

About Charlotte's Web Holdings Inc.

Charlotte's Web, a Certified B corporation headquartered in Louisville, Colo., is a botanical wellness innovation company and a market leader in hemp extract wellness that includes Charlotte's Web whole-plant full-spectrum cannabidiol extracts as well as broad-spectrum CBD and cannabinoid isolates. The company's hemp extracts have naturally occurring botanical compounds including cannabidiol, cannabinol, cannabichromenic acid, cannabigerol, tetrahydrocannabinol, terpenes, flavonoids and other beneficial compounds. Charlotte's Web product categories include CBD oil tinctures (liquid products), CBD gummies (sleep, calming, exercise recovery and immunity), CBN gummies, hemp-derived THC microdose gummies, functional mushroom gummies, CBD capsules, and CBD topical creams and lotions, as well as CBD pet products for dogs. Through its substantially vertically integrated business model, Charlotte's Web maintains stringent control over product quality and consistency with analytic testing from soil to shelf for quality assurance. Charlotte's Web products are distributed to retailers and health care practitioners throughout the United States and are available on-line through the company's website.

Shares of Charlotte's Web trade on the Toronto Stock Exchange under the symbol CWEB and are quoted in U.S. dollars in the United States on the OTCQX under the symbol CWBHF.

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