IMO once again this is why MJNA did not generate the growth many were expecting. This deal had to do with other states thus Tripp retained what he had plus a sweet deal for expansion with no monies on his part. I believe he did this because money was unavailable through the normal channels. Note what I highlighted. I believe he owns Colorada with no split with MJNA.
April 17, 2012
Going National: Dixie Elixirs Brand Expanding to Other States Via Deal With Medical Marijuana Inc.
Tags: cannabis edibles, dixie elixirs, medical marijuana inc., mips, mmj expansion, national medical marijuana brand
In a watershed development for the industry, Colorado-based Dixie Elixirs & Edibles has inked a deal to bring its popular brand of marijuana-infused sodas, goodies, capsules and oils to other states with MMJ laws, becoming one of the first businesses directly involved with medical cannabis to expand nationwide.
The company has partnered up with Medical Marijuana Inc. - a publicly traded firm that invests in and acquires cannabis and hemp businesses – to form a new entity called Red Dice Holdings to market and license Dixie’s products.
This is significant news for the medical marijuana industry, as it could help set up a framework for other companies that are looking to expand into new states and those hoping to create a national brand.
“While this is certainly an exciting development for us … it also gives great hope to all those medical marijuana entrepreneurs out there who want to grow, as it shows there are companies out there like Medical Marijuana Inc. that will make investments in the industry,” Tripp Keber, the president and chief executive officer of Dixie Elixirs and Red Dice Holdings, told MMJ Business Daily.
Creating national cannabis brands and companies is the next step in the industry’s evolution, and Dixie’s move could help usher in a new era of growth. Dispensaries and edibles businesses face difficulties expanding beyond their home markets given that each state has its own set of complex and confusing MMJ laws. Cannabis businesses also can’t transport medical marijuana across state lines per federal drug laws.
But the deal between Dixie and Medical Marijuana Inc. avoids those challenges. Under the agreement, Red Dice Holdings will cement deals with marijuana-infused product manufacturers (MIPS) in other states. Those MIPS will then gain access to Dixie’s formulas, recipes and packaging, allowing them to produce the branded beverages and marijuana-infused products themselves.
Red Dice Holdings – a name tied to the two red dice Keber keeps in his pocket as a reminder that “life is a gamble” – hopes to strike deals with MIPS in states like Arizona, Rhode Island and possibly even California.
“There is no shortage of opportunities,”Keber said.
As part of the deal, Medical Marijuana Inc. acquired all intellectual property, research and development, formulas and recipes associated with Dixie Elixirs from its parent company Dixie Holdings. Medical Marijuana Inc. owns 60% of Red Dice, while Dixie Holdings controls 40% of the new company.