Cigarette giant British American Tobacco (BAT) said it will invest $10 million for a 20% stake in a new joint venture between two Colorado hemp companies.
London-based BAT said it is working with AJNA BioSciences PBC and Charlotte’s Web (CW), related entities, and will seek U.S. Food and Drug Administration (FDA) approval for a hemp-derived novel botanical drug to treat an unidentified neurological condition.
Boulder-based Charlotte’s Web, one of the biggest CBD companies in the U.S., makes a range of hemp extract wellness products. AJNA, Littleton, is a botanical drug development startup focused on neurological disorders which was co-founded by Joel Stanley, former CEO and board chairman at CW.
Closer ties
The deal expands ties between BAT and Charlotte’s Web following the British company’s roughly $60 million direct investment in CW last November which gave it a 20% equity stake in the CBD maker.
Charlotte’s Web and AJNA each hold 40% in the new joint venture, which the partners said will file an Investigational New Drug application with the FDA and start Phase I clinical development this year. The drug will contain Charlotte’s Web hemp genetics, and AJNA will provide lab, regulatory services and clinical expertise for the initiative.
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BAT invests $10 million in U.S. venture to develop hemp drug
