DENVER, Oct. 1, 2018 — Another U.S. cannabis company is listing on the CSE in a reverse-takeover (RTO) transaction. Dixie Brands, Inc. (Dixie) signed a definitive merger agreement on September 28, 2018 in connection with its proposed public listing on the Canadian Securities Exchange (CSE). Pending approval from the CSE, Dixie will complete a reverse takeover (RTO) of a Canadian public company, Academy Explorations Limited (Academy) and will be subsequently renamed Dixie Brands (USA) Inc. Both Academy and Dixie have received board and shareholder approval for the RTO.
“The Federal legalization of marijuana in Canada is further proof that cannabis is no longer a fringe conversation or product. By going public on the CSE, we’re investing in Dixie’s future for continued growth with a focus on quality, product innovation and scale,” says Dixie CEO Chuck Smith.
Simultaneously with the finalization of the documents in connection with the RTO, Dixie closed its Series C fundraising round of approximately $25 million. The Series C round was originally offered as a non-brokered private placement for $20 million, however, due to positive investor demand, Dixie increased the maximum offering amount to $25 million with board and shareholder approval.
Dixie currently operatesg in four states (Colorado, California, Nevada, and Maryland) and has international distribution and manufacturing partners in Australia and Canada. Dixie plans to expand into four to six additional states in 2019 through partnerships with licensed and regulated producers in each state. In 2018, Dixie entered into a Canadian license agreement with Auxly Cannabis Group Inc. (Auxly). Under the agreement, Auxly will work closely with the Dixie team to co-develop innovative products for the adult-use recreational Canadian market.
Dixie products will be developed and manufactured at Auxly’s wholly-owned Canadian-licensed dealer, Dosecann Inc., a company led by a world-class team of food scientists, extraction specialists and product innovators. Dosecann operates out of a 42,000 square foot facility, purpose-built for extraction and the research, development and manufacturing of cannabis products. Dosecann is located in the BioCommons Research Park in Charlottetown, PEI where it benefits from the thriving biotech community that PEI has attracted over the past decade. Dosecann will serve as Dixie’s hub of cannabis research and innovation.
Dixie started with a single product, the Dixie Elixir, a THC-infused soda, and now offers more than 30 different categories across more than 100 individual products