Charlotte's Web Holdings Inc Q3 2018 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Derek Dley - Canaccord Genuity - Analyst : Okay, just a couple questions on the revenue in the quarter. Appreciate some of your commentary just around what looks like to be some delays with the new packaging and the orders from the rebranding. Can you quantify what those delays were during the quarter?

Question: Derek Dley - Canaccord Genuity - Analyst : Okay. And then just moving on to the incremental marketing investment or your advertising, promotions, and selling costs, we had quite a big increase year-over-year. And I suspect the majority of that was related to the new brand rollout. Is this a good run rate, the absolute dollar level that we saw in Q3, to forecast going forward? Or how should we think about that?

Question: Derek Dley - Canaccord Genuity - Analyst : Right, but is the -- like, the percentage in the quarter -- I think it's around 15% on that advertising, promo, and selling. Is that the right number to use in terms of matching it with the revenue? Or should we expect (multiple speakers)?

Question: Derek Dley - Canaccord Genuity - Analyst : Okay, that's helpful. On the split between e-commerce and brick-and-mortar, we have here your sales numbers, or your year-over-year growth numbers. Can you give us just an update on the overall split? Was it still roughly in that 60%/40%, or are we starting to see that narrow a little bit?

Question: Derek Dley - Canaccord Genuity - Analyst : Okay. And then just a last one for me, and this is a bit more regulatory as it relates to the Farm Bill. We've been hearing all sorts of different things in terms of timing, and I appreciate your commentary that it's likely going to get passed in the next couple months. Can you try and help me understand what would happen in a scenario if it didn't pass by the end of the year?

Question: Derek Dley - Canaccord Genuity - Analyst : Okay, terrific. Thank you very much. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. NOVEMBER 27, 2018 / 9:30PM, CWEB.TO - Q3 2018 Charlotte's Web Holdings Inc Earnings Call

Question: Faya Haqna - PI Financial Corp. - Analyst : My first question is: what is your retail distribution strategy and e-commerce strategy moving forward?

Question: Faya Haqna - PI Financial Corp. - Analyst : Perfect. And next question is: do you expect to hire additional hemp farmer contractors, or will you expand your existing farm in Colorado for 2019?

Question: Faya Haqna - PI Financial Corp. - Analyst : Perfect. My last question is: what is the -- how many kilograms of hemp that you expect to be harvested this year? I know you mentioned a number between 250,000 to 350,000 pounds. But do you have an exact estimation for the numbers?

Question: Faya Haqna - PI Financial Corp. - Analyst : Perfect, thank you. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. NOVEMBER 27, 2018 / 9:30PM, CWEB.TO - Q3 2018 Charlotte's Web Holdings Inc Earnings Call

Question: Davis Sehlke - Corriente Advisors - Analyst : Just a quick question. Do you have any future plans to possibly list on the NASDAQ if the Farm Bill passes?

Question: Davis Sehlke - Corriente Advisors - Analyst : Okay, thank you.

Question: Damian Karp - M Partners Inc. - Analyst : I was wondering if you could speak to the new infrastructure and warehouse, if you've got a budget put together, and where it might be situated.

Question: Damian Karp - M Partners Inc. - Analyst : Awesome. I was wondering if you guys could speak to any other international plans, maybe entering South America? Or if you have looked into anything like that?

Question: Damian Karp - M Partners Inc. - Analyst : Interesting. And one last question regarding Mexico. I guess, last week, seven different companies got licenses in Mexico regarding CBD. Have you guys made any plans with regards to entering that market, or have any applications in lieu? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. NOVEMBER 27, 2018 / 9:30PM, CWEB.TO - Q3 2018 Charlotte's Web Holdings Inc Earnings Call

Question: Damian Karp - M Partners Inc. - Analyst : Okay, great. Thanks, guys.

Question: Hunter Hammond - Height Capital Markets - Analyst : Congrats on the quarter. My question is focused on the banking aspect. There were some reports that cannabis-related firms just in general were having trouble accessing financial markets, that maybe accounts were being shuttered. How are you guys handling the banking situation at large?

Question: Hunter Hammond - Height Capital Markets - Analyst : Awesome. Thank you, guys.

Question: Joel Reboh - TD Wealth Private Investment Advice - Analyst : With the Farm Act possibly going through here pretty soon, have any of the Canadian LPs, the cannabis LPs, shown any interest in your company?

Question: Joel Reboh - TD Wealth Private Investment Advice - Analyst : Thank you. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. NOVEMBER 27, 2018 / 9:30PM, CWEB.TO - Q3 2018 Charlotte's Web Holdings Inc Earnings Call