Infused cannabis products maker Dixie Brands closed a $25 million funding round as it works to go public in Canada before year’s end.
The Series C capital raise was originally offered as a non-brokered private placement for up to $20 million, but heavy investor demand led Dixie to boost the offering to $25 million, the Denver company announced.
“The financing round we have just closed will provide resources for Dixie to expand our brand throughout the U.S. and into Canada,” Dixie CEO Chuck Smith said in a news release.
The capital raise coincides with the edibles company’s proposed public listing on the Canadian Securities Exchange (CSE).
The company is moving forward on a previously announced reverse takeover of Academy Explorations. The definitive merger agreement is awaiting approval by the CSE.
Reverse takeovers (RTOs), which often include an acquisition of a publicly traded shell company, have 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 Industries recently 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 has three portfolio companies under its umbrella:
- Dixie Elixirs & Edibles.
- Aceso Wellness, which offers hemp-derived products.
- Therabis, which provides pet supplements.
The company currently has operations in Colorado, California, Nevada and Maryland and international distribution partners in Australia and Canada. Dixie is eyeing expansion into six more U.S. states in 2019, according the release.