Charlotte’s web Holdings (CA:CWEB) said on Oct. 12 that it was partnering with Major League Baseball (MLB). As part of its groundbreaking sponsorship deal, the company is now the Official CBD of Major League Baseball.

“As a leader in the CBD category, with products that provide health and wellness benefits, Charlotte’s web is a welcome addition to the MLB family, representing a landmark partnership in baseball and sports,” said Noah Garden, MLB Chief Revenue Officer.

The CBD sponsorship is the first for a major professional sports league. Charlotte’s Web’s shares closed on Oct. 12, trading up more than 43% on the news.

The multiyear agreement is also the first leaguewide partnership for the company. With MLB as a strategic partner, Charlotte’s Web’s NSF Certified for Sport portfolio of CBD products will help it secure a larger piece of the U.S. CBD market, an estimated US$4.7 billion in 2021.

As part of its partnership, Charlotte’s web launched an e-commerce platform in time for MLB’s Division Series playoff games. In 2023, the company will roll out an expanded line of CBD products in retail sports and health and wellness channels.

“Nature is the most intelligent and advanced technology system in our world, and when we work with nature for health and innovate through the lens of community care, we can truly redefine what it means to be well as an athlete,” stated Jared Stanley, Co-founder, and COO of Charlotte’s web. “This is game-changing, and I am excited by what we can accomplish with the MLB partnership.”

The promotional rights agreement with MLB for its NSF Certified for Sport product line is good through Dec. 31, 2025. It will pay the professional sports league a rights fee of $30.5 million over the three-year term, pay a 10% royalty on all gross sales from MLB co-branded products exceeding $18 million, and issue 6.12 million shares of its stock.

Charlotte’s web has been busy laying out a U.S. expansion strategy this fall.

In September, the company announced that it had signed a multiyear distribution agreement with Southern Glazer’s Wine & Spirits, one of the world’s leading distributors of wine and spirits. It operates in 44 U.S. states, the District of Columbia, and Canada.

Southern Glazer’s distributes Charlotte’s Web’s CBD gummies, capsules, and oil tinctures to its entire retail customer network, including all retail stores licensed to sell alcohol.

“This exciting relationship is another step in delivering on our promise to shift our model to key multistate distributor relationships in new industry verticals,” Jacques Tortoroli, Charlotte’s Web’s CEO, stated in September. “Southern Glazer’s large-scale distribution within food and beverage, specialty beer, wine and spirits retail, hospitality, and big box retail addresses consumer demand for wellness options in this category. I look forward to working closely to grow our respective businesses.”

In the company’s most recent Q2 2022 results, Charlotte’s web reported a 22% decline in its revenue, to US$18.9 million, with an adjusted EBITDA loss of $5.4 million, 6.0% higher than a year earlier.

Despite the big jump in its share price, CWEB is still down nearly 29% in 2022 and more than 60% over the past year.

This article originally appeared on Fintel

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