Louisville, Colorado--(Newsfile Corp. - June 26, 2026) - Charlotte's Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) ("Charlotte's Web" or the "Company"), a botanical wellness innovation company and a market leader in hemp wellness, today provided an update on developments pulling federal and state hemp policy in opposite directions.

California restriction effective July 1, 2026

New California requirements under SB 378 and related state regulations will significantly restrict the sale and distribution of ingestible full-spectrum and broad-spectrum hemp-derived products to consumers in the state. California's approach will be among the most restrictive in the nation, specifically limiting direct-to-consumer and online sales, whereas most other states have primarily focused on retail channels.

As a result, beginning July 1, Charlotte's Web must cease direct shipments of affected products to California consumers.

"This bill is a tragedy for many California families who have come to rely on these products to live fuller lives," said Bill Morachnick, Chief Executive Officer of Charlotte's Web. "We hear every day from parents, veterans, and individuals who have found meaningful support in therapeutic hemp products and the thought of losing access is deeply personal to them, and to us. Without thoughtful alternative access, this becomes a public health crisis in the making; one that risks taking away safe, trusted options that so many people depend on. Our purpose has always been rooted in helping people thrive, and we will continue to stand with Californians, working tirelessly to ensure their voices are heard and their needs are not overlooked."

Certain product categories are expected to remain available, including topical products that meet the established 0.3% THC dry-weight definition of hemp, as well as cannabinoid isolates and mushroom-based products, subject to final regulatory confirmation.

The Company remains focused first on supporting its California customers, many of whom rely on these products as part of their health. Charlotte's Web has maintained a longstanding presence in California and has consistently advocated and lobbied alongside families at the state capitol and will continue to do so.

Charlotte's Web is actively notifying affected customers and encouraging them to share their perspectives with policymakers, while continuing to advocate for responsible hemp regulation and consumer access at both the state and federal levels.

Federal call to protect access

California's action comes at a time when the federal Administration and policymakers are moving forward in a markedly different direction. On June 24, 2026, the White House called on Congress to revise federal hemp regulations to preserve consumer access to appropriate full-spectrum hemp-derived CBD products, or, at a minimum, to delay separate federal changes currently scheduled to take effect on November 12, 2026. The Administration emphasized that any path forward should "allow Americans to benefit from access to appropriate full-spectrum CBD products while preserving Congress's intent to restrict the sale of products that pose serious health risks," and pointed to bipartisan legislation introduced by Representative Andy Barr (R-KY) as a potential model.

As a member of the ONE HEMP coalition, working alongside industry leaders and consumer advocates, Charlotte's Web supports a policy framework, at both the federal and state levels, that clearly distinguishes non-intoxicating, full-spectrum hemp wellness products, from intoxicating beverages and recreational products. The Company believes these categories warrant distinct regulatory approaches grounded in science and consumer safety.

"This is exactly why federal leadership matters," added Kelly Fair, General Counsel at Charlotte's Web. "Consumers deserve consistent, science-based rules that preserve access to trusted products, regardless of where they live."

The Administration's request is expected to be taken up by Congress in the coming months. However, there can be no assurance as to the timing or outcome of any legislative action. Charlotte's Web will continue to monitor developments closely and will provide updates, including potential options to support California consumers, as information becomes available.

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 a market leader in hemp extract wellness that includes Charlotte's Web whole-plant full-spectrum CBD extracts as well as broad-spectrum CBD and cannabinoid isolates. The Company's hemp extracts have naturally occurring botanical compounds including cannabidiol ("CBD"), CBN, CBC, CBG, THC, terpenes, flavonoids, and other beneficial compounds. Charlotte's Web product categories include CBD oil tinctures (liquid products), CBD gummies (sleep, calming, exercise recovery, immunity), CBN 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 from soil to shelf 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.

Shares of Charlotte's Web trade on the TSX under the symbol "CWEB" and are quoted in U.S. Dollars in the United States on the OTCQX under the symbol "CWBHF". Subscribe to Charlotte's Web investor news.

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.

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 forward-looking statements contained in this press release are based on certain assumptions and analysis by management of the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors that management believes are appropriate and reasonable.

The material factors and assumptions used to develop the forward-looking statements herein include, but are not limited to: the impact of state-level laws and regulations, including new California restrictions on direct-to-consumer sales of hemp-derived products, on product availability, customer demand, and the Company's sales and results of operations; changes to, or the timing, scope and outcome of, legislative and regulatory proposals affecting hemp and hemp-derived cannabinoid products, including the matters described above; regulatory regime changes; anticipated product development and sales; the success of sales and marketing activities; product development and production expectations; outcomes from R&D activities; the Company's ability to deal with adverse growing conditions in a timely and cost-effective manner; the availability of qualified and cost-effective human resources; compliance with contractual and regulatory obligations and requirements; availability of adequate liquidity and capital to support operations and business plans; and expectations around consumer product demand. In addition, the forward-looking statements are subject to risks and uncertainties pertaining to, among other things: the legislative and regulatory environment for hemp-derived products at the federal and state levels; supply and distribution chains; the market for the Company's products; revenue fluctuations; regulatory changes; loss of customers and retail partners; retention and availability of talent; competing products; share price volatility; loss of proprietary information; product acceptance; internet and system infrastructure functionality; information technology security; available capital to fund operations and business plans; crop risk; economic and political considerations; and including but not limited to those 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, 2025, and other risk factors contained in other filings with the Securities and Exchange Commission available at http://www.sec.gov and filings with Canadian securities regulatory authorities available at 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.