June 11, 2019 - Dixie Brands Announces Plan to Enter Oklahoma Cannabis Market
- Dixie's portfolio includes more than 100 cannabis-infused products spanning 15 product categories
- Agreement with Globus Holdings will see products manufactured and distributed in Oklahoma beginning in Fall 2019
- Approximately 130,000 medical marijuana patients in Oklahoma
- Second new U.S. state Dixie has entered in 2019 out of target of four-to-six
DENVER, June 11, 2019 /CNW/ - Dixie Brands Inc. ("Dixie" or "the Company") (CSE: DIXI.U), (OTC: DXBRF), (Frankfurt: 0QV), one of the cannabis industry's leading consumer packaged goods ("CPG") companies, today announced that it is entering the Oklahoma medical-use cannabis market through a manufacturing, distribution and licensing agreement the Company has signed with Globus Holdings ("Globus"). Oklahoma will become the sixth state in Dixie's growing U.S. footprint.
Pursuant to the agreements, Dixie will work in conjunction with Globus to use Dixie's intellectual property, including its proprietary formulations and preparation methods as well as the associated trademarks, in the State of Oklahoma. Globus' manufacturing facility in Tulsa will make use of Dixie's proprietary formulations and proven "GMP" (good manufacturing practices) and quality control procedures. Initial products including gummies, mints, pills, vaporizers, and drinks are expected to be available beginning in the Fall of this year.
"We continue to execute on our stated priorities for 2019, and expanding into new U.S. states is at the top of that list," said Chuck Smith, President and CEO, Dixie Brands. "We are very excited to introduce Dixie products to Oklahoma. The state has embraced legal cannabis over the past year and we anticipate that our relatively early entry into the market will help establish Dixie as one of the top-selling brands."
Oklahoma has proceeded quickly to license medical marijuana patients and industry participants since voters approved medical use through a June 2018 ballot question. According to the Oklahoma Medical Marijuana Authority, the state has approved 129,000 patients, as well as growers, processors and nearly 1,500 dispensaries. Based on recent reports from the Oklahoma Tax Commission, cannabis sales in Oklahoma exceeded $23 million in May 2019, and have been growing significantly from month to month as industry participants continue to ramp their operations.
A highly competitive environment is well suited to Dixie's strengths as an experienced cannabis CPG company with one of the industry's broadest product portfolios. A key success factor will be the ability to secure shelf space in dispensaries across the state. The Company expects that its proven approach to distribution, as well as Globus' roots and relationships in Oklahoma, will be instrumental in building statewide awareness and selling products at the dispensary level.
"Our team is extremely selective about who we partner with, and we are excited to bring quality Dixie products to Oklahoma's medical marijuana patients," said Heather Fry, Oklahoma spokesperson for Globus Holdings. "Globus is building a presence in multiple markets and we look forward to expanding our relationship with Dixie as additional states introduce medical and recreational marijuana sales."
ABOUT GLOBUS HOLDINGS
Globus Holdings is a multistate organization and is building a portfolio of cannabis licenses in Oklahoma and Nevada. Globus will be expanding to other states as they introduce medical and recreational marijuana sales. The ownership group has long-established relationships in the states where they do business. Globus is expanding its portfolio of cannabis products by bringing leading national brands to Oklahoma and Nevada. Globus is also focused on building distribution relationships with a statewide network of successful dispensaries in each state.
ABOUT DIXIE BRANDS, INC
Dixie Brands Inc., through its licensed partners, has been formulating award-winning THC and CBD-infused products since 2009. Currently operating in five U.S. states, the Company is expecting to double its manufacturing and distribution capabilities in 2019 in the U.S. as well as expand internationally, including Canada and Latin America. Dixie leads 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 15 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. To find out more about Dixie's innovative products, or about how Dixie is building the future of cannabis, visit www.dixiebrands.com.
SOURCE Dixie Brands, Inc.