Dixie will take on the function of establishing, formulating and distributing the new AriZona-branded line of THC drinks.
On Wednesday (August 7), Colorado-primarily based Dixie Brands (CSE:DIXI.U,OTCQX:DXBRF) announced a partnership with drink-maker AriZona to operate towards developing a line of THC-infused beverages.
AriZona’s subsidiary Herbal Enterprises will direct brand and idea style. Dixie will take on the function of establishing, formulating and distributing the new AriZona-branded line of THC drinks.
Don Vultaggio, chairman of AriZona Beverages, stated in a press release that the cannabis marketplace is an “important emerging category” and that his business has “maintained (its) independence as a private business enterprise to be positioned to lead and seize generation-defining possibilities specifically like this one particular.”
The initial partnership will final 3 years with an choice to renew up to two extra terms of two years each and every. The deal also offers AriZona the capability to invest up to US$10 million into Dixie in subordinate voting shares at a price of US$.59 more than two years.
In the press release, Dixie CEO Chuck Smith stated that the move would make AriZona one particular of the most recognized brands to move into the cannabis marketplace.
“This partnership marks a watershed moment for the popularization and expansion of the cannabis sector all round, and is a further big step forward for Dixie Brands’ approach to develop a residence of well-known cannabis CPG brands,” Smith added.
The business has been generating strides in beverage technology research to boost its capability to develop cannabis-primarily based drinks. Final month, Dixie announced a breakthrough in the solubility and uptake for its upcoming cannabis FUSE drink lineup.
In a prior interview with the Investing News Network (INN), Smith stated that providers are seeking for a way to standardize the delivery time for cannabis-primarily based edibles and beverages to assistance develop trust with consumers.
“In the beverage space, if you drink alcohol you know what occurs when you have a couple of glasses of wine … and we want to be capable to mimic that practical experience as close as doable,” Smith told INN.
Dixie has established itself in the cannabis space in the US with a selection of items, which cover every little thing from THC-infused mints to topical cooling balms. The business also currently provides its brand of Elixir beverages in Colorado, California, Nevada and Maryland.
Dixie’s Q1 2019 final results reported US$two.two million in income, up 137 % from US$937,000 in Q1 2018. The Q1 2019 report attributed the development to a robust sales presence in California and Maryland, stating that the company’s current moves into new markets, such as Michigan, will yield even extra development in the coming quarters.
Dixie shares rose to C$.68 on Wednesday’s open immediately after closing at C$.59 on Tuesday (August six). Costs presently sit at C$.78 as of three:10 p.m. EDT.
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Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any business talked about in this write-up.