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. As a result, Dixie will boast the largest global footprint of infused product manufacturing and distribution facilities of any brand in the cannabis space.
“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.
“The financing round we have just closed will provide resources for Dixie to expand our brand throughout the U.S. and into Canada,” Smith states. “Dixie has been a leader in the cannabis industry since its inception. We have nine years of experience developing intellectual property and building a brand that creates an incredible platform for our company and shareholders. We look forward to providing the same safe, high quality, and consistent product to patients and adult-use consumers throughout the U.S. and Canada.”
Dixie is currently operating 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. Already the owner of the largest award-winning, THC-infused product line in the industry, Dixie has recently expanded its hemp-based offerings by introducing Aceso Wellness, a human dietary supplement line, and Therabis, a pet food supplement portfolio, at the end of 2016. These highly regarded products are available through brick-and-mortar locations and e-commerce in all 50 states, and internationally.
As a result of the additional capital recognized by the Series C raise and future access to capital in the public markets, Dixie will expand its controlled manufacturing and distribution footprint throughout the U.S., and invest in automated production to increase manufacturing scale and efficiency. Additionally, Dixie will invest in continued product innovation and development in line with mainstream consumer trends and ever-increasing demand from wide ranging demographics.