Add Dixie Elixirs to the list of Colorado cannabis companies continuing to expand north of the border. The pot-infused-products company just announced plans to go public on the Canadian Securities Exchange pending approval from the CSE.
Instead of jumping into the Canadian stock exchange headfirst and going through the lengthy process of going public itself, the private Dixie wants to purchase a company that is already public in Canada. In an October 1 announcement, Dixie laid out plans for a reverse takeover of Academy Explorations Limited, a Canadian company that "does not have significant operations" and "intends to invest in, merge with, or [undergo] a reverse take-over by another corporation," according to Academy's Bloomberg profile.
If the purchase is approved by the CSE, Dixie plans to change the name of Academy Explorations Limited to Dixie Brands (USA) Inc. According to Dixie, the move would make it the largest infused-products brand in legal cannabis; this all comes fresh off a Series C fundraising round of approximately $25 million.
"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,” Dixie CEO Chuck Smith says in a statement. "The financing round we have just closed will provide resources for Dixie to expand our brand throughout the U.S. and into Canada."
The two sides had been discussing the deal since as early as July, according to Marijuana Business Daily, but didn't sign the definitive merger agreement until September 28, after receiving board and shareholder approval.
Dixie already had licensing agreements in Canada and Australia, but this move makes its footprint even larger up north, and possibly beyond: Thanks to federal reciprocity, Canadian cannabis companies could ship medical marijuana products to up to fifteen countries where the plant is legal — not including America, where MMJ is still federally prohibited.
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