Dixie Brands has joined a rising record of U.S. marijuana corporations turning to the Canadian capital markets to fund enlargement plans.
The Denver infused product maker is pursuing an inventory on the Canadian Securities Exchange by way of a reverse takeover of Toronto-based Academy Explorations – a former mining firm that has maintained its itemizing on the CSE.
The deal is topic to approval by Academy Explorations shareholders and is predicted to shut by the fourth quarter, the businesses introduced in a information launch.
Before finishing the reverse takeover, Dixie expects to full a personal placement of its shares that would yield gross proceeds of $12 million-$20 million, together with a conversion of $2 million in debt in change for Dixie widespread shares.
Reverse takeovers (RTO), which frequently embrace a takeover of a public shell firm, has turn into the go-to path for U.S. hashish companies wanting to faucet into Canada’s public markets.
Los Angeles-based MedMen and Chicago-based Green Thumb Industries just lately accomplished RTOs in Canada, whereas different corporations which have introduced plans to pursue the maneuver embrace LivWell Enlightened Health of Denver and 4Front Holdings of Phoenix.
Dixie says the strikes are a part of the corporate’s plans to increase its manufacturers in Canada and different worldwide markets.
The firm has three portfolio corporations beneath its umbrella: Dixie Elixirs & Edibles, Aceso Wellness, which provides hemp-derived merchandise, and Therabis, which offers pet dietary supplements.
Dixie additionally has a license settlement with Auxly Cannabis, which permits Auxly to solely produce and distribute Dixie branded merchandise throughout Canada.
Lisa Bernard-Kuhn might be reached at [email protected]