Charlotte's Web Holdings (CWBHF) shares were rising double digits after the cannabidiol distributor reached a distribution agreement with the country's largest grocery retailer, Kroger (KR) - Get Report .
Charlotte's Web shares were trading up 12% at $16.97.
The Boulder, Colorado company said in a statement that Kroger would begin distributing its products in a number of states, with the goal of putting them in 1,350 stores in 22 states.
The products will be available at a number of Kroger store brands, including its namesake as well as Dillons, Fry's, Mariano's and others.
Charlotte's Web Holdings, employing more than 230, cultivates hemp in northeast Colorado. It also has contracts with farms in Kentucky and Oregon, according to its website.
For the first quarter ended March 31, the company earned 2 cents a share compared with 4 cents in the year-earlier period. Revenue reached $21.7 million, up 66% from $13.1 million.
For all of fiscal 2020, the company expects sales of $120 million to $170 million.
The company's product lines include olive oils and topicals for people and extracts and other products for pets.
Cannabidiol is a key active ingredient within marijuana. It is derived from hemp, a related plant. CBD by itself creates no high from consumption.
Save 76% with our Summer Break Sale. Subscribe to our premium site Real Money and become a smarter investor! Click here today to sign up!