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Charlotte's Web issued the following statement regarding the FDA's January 26th press announcement: "Charlotte's Web is encouraged that the Administration has agreed that it is necessary for Congress to act for the regulation of hemp-derived cannabidiol, or 'CBD.' The FDA position has taken four years to come together, while the CBD industry has matured without a clear regulatory pathway for CBD products that are already available for sale in all 50 states and consumed safely by millions of Americans. This includes professional athletes, veterans, and everyday wellness seekers. The company looks forward to continuing its work in Washington DC to forward this process. The company also agrees with the FDA on the importance of testing to ensure the quality and safety of CBD products and has already provided studies to support this position. As the CBD pioneer and market leader, Charlotte's Web has engaged in safety studies and compiled toxicology data including liver safety. These studies have been conducted under an Institutional Review Board and Good Laboratory Practices, following guidelines of the Organization for Economic Co-operation and Development. They have been subjected to an unbiased peer review and published in journals and have been vetted and accepted for indexing in the PubMed central database. These studies support the efforts of a legislative regulatory framework. During this four-year period of regulatory absence, Charlotte's Web has set the standard in responsible self-regulation in product manufacturing, safety, and labeling. In addition to safety and toxicology studies the Company utilizes cGMP-compliant manufacturing facilities, seed-to-shelf testing, and certificate of analysis transparency for all products. Recently, Charlotte's Web became the first and only broad-spectrum CBD hemp extract to be NSF Certified for Sport, the gold standard to ensure safe and consistent products for professional athletes and consumers alike."

Curaleaf announced the proactive closure of the majority of its operations in California, Colorado and Oregon, beginning this month, as part of its continued effort to streamline its business. Additionally, in an effort to further optimize operations and reduce costs, the company will consolidate cultivation and processing operations in Massachusetts to a single facility in Webster, resulting in the closure of its Amesbury facility. Curaleaf expects to record non-cash restructuring and impairment charges that it will detail on its fourth quarter earnings call in March. Concurrent with these actions, the company has reduced its payroll by 10% which, when coupled with other cost savings initiatives, it expects to realize $60M in gross run-rate expense savings in 2023, exceeding its initial savings target by 50%. The company will exit production and cultivation facilities in California, Colorado and Oregon. While these states have contributed to the growth of Select and other Curaleaf wholesale brands, the company acknowledges the difficult operating environment in these investment states and will instead place a laser focus on cash generation in its core revenue-driving markets moving forward. Curaleaf began aggressive cost-cutting measures in these states in 2022 through facility closures and reductions in workforce. These adjustments were necessary for the future success and profitability of the business and were made as a result of recent legislative decisions, price compression, and lack of enforcement of the illicit market. For context, these markets contributed less than $50M in revenue to Curaleaf last year. Curaleaf expects these market closures will be immediately accretive to its adjusted EBITDA margins and positions it for robust positive free cash flow generation in excess of $125M this year as management executes on its strategic priorities.

Curaleaf announced the expansion of its Grassroots brand in New Jersey with the launch of premium cannabis flower and pre-rolls. Available now at all Curaleaf locations across the state, New Jersey is the eighth market to offer Grassroots' carefully cultivated products following its strategic national rebrand in November 2022.