Marijuana companies are jumping on the opportunity to be listed on major stock exchanges, operating under the premise that increased visibility to potential investors will help secure future funding.
While it’s questionable to what extent Canadian markets are still enthusiastic about their domestic cannabis companies (as seen by this bearish month and a half since legalization), that hasn’t dissuaded companies from striving to get listed anyway.
Denver-based Dixie Brands, Inc announced today that they have completed a reverse takeover transaction of Academy Explorations Limited and are going to be listed on the Canadian Stock Exchange (CSE) effective November 29, 2018.
“The acceptance of cannabis across the world now is increasing in the United States, Canada, and many other countries are legalizing. But access to capital is still a little restrictive in the U.S., so we chose the Canadian markets to begin our trading so we can raise money and really fuel our growth and expansion in the foreseeable future,” said Chuck Smith, Co-Founder and CEO of Dixie Brands in an interview.
Dixie Brands, despite having existed in one form or another for close to nine years, only decided this month that it was time to go public. Listing under the DIXI.U symbol, the company largely operates in four states across the U.S. – California, Nevada, Maryland, and Colorado, while also owning international distribution partners in Canada and Australia. The company also plans to expand into a few more states in 2019, an endeavor that will require additional funding in one form or another.
“The great thing is Dixie’s been around for nine years, so that’s nine years of building a broad portfolio and a really strong foundation for us to expand upon. That’s nine years of building I would argue one of the largest consumer branded product portfolios in the industry, whether it’s in the regulated THT market or the CBD wellness platform market,” added Smith when asked about where new funding will be allocated towards. “We have over 100 products and 13 delivery vehicles currently in our portfolio, so unlike other companies, we don’t have to put this money to develop products…most of the money goes to revenue-generating activities.”
Time will tell how Dixie Brands will fair on the public markets. Most likely, however, share prices will stumble as the Canadian cannabis market in general deals with its post-legalization logistical hurdles. At the same time, today’s surges in stock prices could signal a much needed turnaround in the markets – only time will tell whether it lasts.
Dixie Brands Company Profile
Dixie Brands Inc., which has been formulating award-winning THC and CBD-infused products since 2009, is expecting to double its manufacturing and distribution capabilities in 2019 in the US as well as expand internationally, including Canada.
They lead the global industry in the development, packaging design, product innovation and quality control for the commercial production of cannabis infused products. While the company started with a single flagship product, the Dixie Elixir (a THC-infused soda), it is now one of the industry’s most recognized consumer brands, expanding to over 100 products across more than 13 different product categories representing the industry’s finest edibles, tinctures, topicals and connoisseur grade extractions, as well as world-class CBD-infused wellness products and pet dietary supplements.
Dixie’s executive team has been instrumental in the formation of the marijuana industry for recreational and medicinal use, serving as founding members on several national regulatory and business-oriented industry organizations. –Globe News Wire
