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Cannabis firm Dixie Brands outlines plans to go public in Canada

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Dixie Brands has joined a growing list of U.S. marijuana companies turning to the Canadian capital markets to fund expansion plans.

The Denver infused product maker is pursuing a listing on the Canadian Securities Exchange via a reverse takeover of Toronto-based Academy Explorations – a former mining firm that has maintained its listing on the CSE.

The deal is subject to approval by Academy Explorations shareholders and is expected to close by the fourth quarter, the companies announced in a news release.

Before completing the reverse takeover, Dixie expects to complete a private placement of its shares that could yield gross proceeds of $12 million-$20 million, including a conversion of $2 million in debt in exchange for Dixie common shares.

Reverse takeovers (RTO), which often include a takeover of a public shell company, has become the go-to path for U.S. cannabis firms looking to tap into Canada’s public markets.

Los Angeles-based MedMen and Chicago-based Green Thumb Industriesrecently completed RTOs in Canada, while other companies that have announced plans to pursue the maneuver include LivWell Enlightened Health of Denver and 4Front Holdings of Phoenix.

Dixie says the moves are part of the company’s plans to expand its brands in Canada and other international markets.

The company has three portfolio companies under its umbrella: Dixie Elixirs & Edibles, Aceso Wellness, which offers hemp-derived products, and Therabis, which provides pet supplements.

Dixie also has a license agreement with Auxly Cannabis, which allows Auxly to exclusively produce and distribute Dixie branded products across Canada.

 

Source: Cannabis firm Dixie Brands outlines plans to go public in Canada

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