What happened
Charlotte's Web Holdings (OTC: CWBHF) stock ended the week on a positive note. The company, which has been making a recent push into the U.K. market, had some good news to deliver about its operations in that country. As a result, its shares closed the day nearly 4% higher.
So what
Friday morning, Charlotte's Web announced that its full-spectrum cannabidiol (CBD) products have been granted Novel Food status by the U.K. Food Standards Agency (FSA). This allows the company to sell those goods throughout the country, at a distinct competitive advantage -- it didn't hesitate to mention that it's one of only a handful of full-spectrum CBD producers to receive the status out of over 800 applications.
Image source: Getty Images.
With the Novel Food designation on its wall, Charlotte's Web can "now expand in the U.K. and commence discussions with large retailers who have been waiting for access to full-spectrum products from our patented hemp cultivars," CEO Jacques Tortoroli said in a statement.
The U.K. presence of Charlotte's Web is developing fast. Only last week, the company announced that it had signed an exclusive U.K. distribution agreement with British CBD specialist Savage Cabbage. This deepens the existing cooperation between the two companies, which have been partners since 2016. Savage Cabbage also exports the company's products to 31 other European countries.
Now what
Charlotte's Web hasn't provided any estimates for how the Savage Cabbage deal and the Novel Food stamp will affect its business. But any progress in a big market abroad is cause for optimism, especially for a struggling producer like the company, so investors were right to cheer the move on Friday.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Charlotte's Web Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
