BAT Invests $10 Million in Venture for CBD Brain Drug
- Partner is Charlotte’s Web, a CBD firm that BAT invested in
- Deal is part of BAT’s plan to diversify away from cigarettes
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British American Tobacco has made another investment in cannabis as part of its push to diversify away from cigarettes, this time partnering with CBD firm Charlotte’s Web to develop a drug for an undisclosed neurological condition.
A joint venture of AJNA BioSciences PBC, Charlotte’s Web and a BAT subsidiary plans to seek approval from the US Food and Drug Administration for a treatment made from hemp extract. BAT invested $10 million in the deal. Charlotte’s Web, which BAT invested in last year, and AJNA each own 40% of the entity, while BAT controls the remaining stake, according to a statement.