Charlotte's Web Welcomes New CMS Guidance, Advancing Access to Eligible Full‑Spectrum Hemp Products

LOUISVILLE, Colo., March 20, 2026 /PRNewswire/ - (TSX: CWEB) (OTCQB: CWBHF) Charlotte's Web Holdings, Inc. (the "Company" or "Charlotte's Web"), a botanical wellness innovation company and the market leader in cannabidiol ("CBD") hemp extract wellness products, extends its sincere appreciation to the Centers for Medicare & Medicaid Services (CMS) and the Administration for their leadership in advancing structured access to eligible full‑spectrum hemp products through current CMS Innovation Center models, as reflected in CMS's new Substance Access Beneficiary Engagement Incentive (BEI) guidance pages. Under the BEI, CMS has defined eligible hemp products to include orally administered products containing up to 3 mg per serving of tetrahydrocannabinols, a threshold that accommodates non-intoxicating full-spectrum hemp-derived CBD products. This forward‑looking framework supports patient‑provider discussions around eligible hemp products, reinforcing science‑driven policymaking that prioritizes consumer safety and product quality.

"We are grateful for CMS's thoughtful approach in expanding access and creating space for responsible, evidence‑based hemp wellness conversations in clinical settings," said Bill Morachnick, CEO of Charlotte's Web. "This program aligns with our mission to advance safe, high‑quality, science‑backed hemp options for consumers, and we remain committed to supporting sensible legislation that protects patients and strengthens the integrity of our industry."

Charlotte's Web will continue to champion policy solutions that uphold safety, transparency, and the availability of trusted full‑spectrum hemp products.

About Charlotte's Web Holdings, Inc.
Charlotte's Web Holdings, Inc., a Certified B Corporation headquartered in Louisville, Colorado, is a botanical wellness innovation company and market leader in hemp extract wellness. The Company's product categories include CBD oil tinctures (liquid products), CBD gummies (sleep, calming, exercise recovery), CBN gummies, CBG gummies, hemp-derived THC microdose gummies, functional mushroom gummies, CBD capsules, 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 for quality assurance. Charlotte's Web products are distributed to retailers and healthcare practitioners throughout the U.S.A. and are available online through the Company's website at www.charlottesweb.com.

Forward-Looking Information

Certain information provided herein constitutes forward-looking statements or information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Forward-looking statements are typically identified by words such as "may," "will," "should," "could," "anticipate," "expect," "project," "estimate," "forecast," "plan," "intend," "target," "believe" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. This press release includes forward-looking statements pertaining to, among other things, the Company's beliefs regarding product eligibility under CMS programs, the potential scope and impact of federal healthcare frameworks for hemp-derived products, the Company's competitive positioning, and its ability to participate in federal healthcare programs. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties, and other factors which may cause actual results, levels of activity, and achievements to differ materially from those expressed or implied by such statements. The material factors and assumptions used to develop the forward-looking statements herein include material risk factors that could cause actual results to differ materially from the forward-looking statements including, among others, general economic and market risks, regulatory and policy risks, the risk that CMS may modify or discontinue the referenced programs, the risk that the Company's products may not ultimately meet all eligibility requirements. These and other risks and uncertainties discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ending December 31, 2024, and other risk factors contained in other filings with the Securities and Exchange Commission available on www.sec.gov and filings with Canadian securities regulatory authorities available on www.sedarplus.ca. The impact of any one risk, uncertainty, or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent, and the Company's future course of action depends on management's assessment of all information available at the relevant time. Any forward-looking statement in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. Except as required by applicable law, the Company assumes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. All forward-looking statements, whether written or oral, attributable to the Company or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.

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SOURCE Charlotte's Web Holdings, Inc.