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I didn't ask but thanks for the article!
From what I read, the author stressed extraction efficiency not source just THC, which is what I alluded to(albeit not in such a well thought out technical essay). But what does this have to do with your implication that the 60% range carts won't sell? Also the author doesn't even mention cutting agents, adding terps or carrier oils. He's literally describing pure distillate which is what most extraction companies wholesale.
Source THC percentage does not equate to vape oil THC percentage. It's more to do with how much source material, what solvent, their extraction/blasting process and how much carrier oil in the carts. If it's a full spectrum extract then the cart will have THC,higher levels of CBD and other cannabinoids and terpenes. Doesn't matter anyway. Like I was trying to imply before, alotta daily users(myself included) like to be high all day and actually need to get shit done at the same time. It's not crack cocaine, not everybody's trying to "beam up" all the damn time lol. Can't read/do math/shop in a store etc and toke a 90% cart all the time. We're the users with disposable income that actually buy product often. I have different flower/carts for different times and effects. Kinda like how some people prefer a 12 pack of Coors thruout the day instead of sipping 90 proof scotch. Trailblazer carts may not sell because they're perceived as low quality/low end AND also low THC. But I don't think low THC is reason enough to write them off just yet, we'll see. Are the Edison carts low THC as well?
Same and I'll be buying again in the $2(USD) range.
I do disagree with your comments re the 60% THC oils tho.
I'm a daily user for many years so take my knowledge as someone with real world experience with this stuff lol. For flower, THC and CBD counts certainly matter. The higher the better!
For oils, not as much. There's lots more room here for differentiated products. Many of the super high(THC >85%) oils are distillate based. These are usually sourced with low grade trimmings and are more of a conveyor belt/factory process. The flavor profiles(terpenes) are added in afterward. They get you high but they can taste chemically and really don't mimic the real flower. Also because they're very strong, they're not something you'd want to toke on all day unless you have a high tolerance. They can quickly raise your tolerance making you need more product for the same desired effect.
The lower percentage oils meanwhile can be sourced from live resin or rosin which IMO is a superior product, has a full spectrum of cannabinoids, the flavor and terpene profile is left intact and closely mimics the experience of consuming regular flower. Many times these are like craft beers. This is my go to when I use vape pens. These also can demand a higher price even tho the product may contain a lower THC percentage.
Cannabis flower is well on its way to becoming a commodity but not all cannabis products are the same. Just like coffee products, there will be room for the super strong espresso type products and the weaker, sweeter not so coffee-like concoctions that we see Starbucks makes billions from. I also think consumers like myself are already noticing brands and following ones they like and trust over just the THC percentage.
Thanks for the link! Gonna read it now. I missed this.
I did notice the RSI. I don't see this taking off tomorrow but we'll see.
I figured OGI would retrace below $3.14 today, so yesterday I sold @ $3.20, the lot I bought on Friday @ $1.99. Made 61% profit.
IMO, the only reason OGI closed above $3.14 is because they played the wildcard and released news today. Shoppers Mart has been in the hunt for Cannabis exposure for a while so this is great news but I don't see this news release propping the stock up for long. Also this isn't an exclusive agreement and we may see another LP announce a Shoppers Mart agreement tomorrow. Then what?
They're diluting @ $3.14 so inevitably it'll fall below.
I'm still holding shares at different levels. But right now at these levels, this is a perfect undervalued/overvalued swing trade. Rinse/repeat.
Ross Gerber Twitter -
Somethings up with $cron AH moving around like something big is up. Moving higher. Up nicely AH. Not finding any news. #cannabis did get too cheap. #cronos @cronosgroup
Somethings up with $cron AH moving around like something big is up. Moving higher. Up nicely AH. Not finding any news. #cannabis did get too cheap. #cronos @cronosgroup
— Ross Gerber (@GerberKawasaki) October 16, 2019
Here's Jon Najarian on Twitter saying he had nothing to do with it...yeah right. Something's up.
https://twitter.com/jonnajarian/status/1184589286559158274
CRON was mentioned on CNBC's Fast Money today. I believe this is why it's up after hours. Benzinga mentioned CRON at 4:34pm, compare the AH chart.
https://www.benzinga.com/markets/options/19/10/14607266/najarian-brothers-highlight-unusual-activity-in-signet-jewelers-cronos-and-more
Sold off on Tuesday before the bell. Forgot I had an sell order saved. I'll be watching KSHB for day trades, it's not a long hold anymore IMO.
This is a good article written by Jim Crumley on June 30th to check out. obviously doesn't cover the vape issue or today's raise but points out issues in Kushco's business model:
https://www.fool.com/investing/2019/06/30/is-marijuana-stock-kushco-holdings-a-buy.aspx
LOL...Glad I sold Tuesday! Had a few hundred shares left from around a dollar. Hurt to get rid of them but had to do it. I used to think Kush Bottles had great management and was in this one long term but it's now a swing trade. Another raise lol wow and waay under the current pps wow. Bad accounting, bad China tariff situation, 50% of their sales comes from vaping related source material and now they just shat on shareholders.
Massachusetts banned all vaping products for 4 months. This is bad for the industry as a whole and why KSHB sold off all the sudden today.
https://www.bostonglobe.com/news/marijuana/2019/09/24/governor-baker-make-vaping-announcement-amid-spate-lung-illnesses/o8sO6mf3GOmX4mOpLLtcEL/story.html
Around 200k shares dumped in the last 10 minutes. Now officially oversold. Not sure what's going on with this. Trump spoke at the UN about an hour ago, maybe he said something to further deteriorate the US/China trade relations smh.
I still have shares from .88usd so it's always up for me!(check first couple pages of this board lol)...Maybe you should learn how to spot emerging markets sooner? Maybe you should learn how to do DD? And then maybe grow some balls and actually invest in speculative stocks instead of jumping in after a stock has run up to ALL Time Highs? The company has over 1.4bn to play with, the CEO is not lining his pockets with your share money. 14 negative posts all on the same shit, you sound pitifully dumb with no one to blame but yourself.
KushCo Makes a Strategic Move During the Vaping Crisis
https://nicinvestors.com/2019/09/20/kushco-makes-a-strategic-move-during-the-vaping-crisis/
Published September 20 2019
by Greg Miller Executive Director, NICI
With the vaping crisis spreading, one company is taking action…
Over the past few weeks, I’ve been providing updates about the vaping crisis.
In my first report, I talked about how there were possibly 150 cases across 16 states, with 30 of those occurring in Wisconsin.
Within a matter of weeks, there were more than 450 cases in 33 states. Unfortunately, five people had died as of September 11. Because of the news, I told members of Cannabis IPO Insider we were putting one of the companies in the model portfolio on hold.
Members can access that report here.
Now, I know regulators can often get in the way of the cannabis industry. In places like California, they have placed too many taxes on legitimate operators, which in turn has helped the black market thrive.
But regulations can be good.
If a company is running a legitimate business, they want regulations that are done right. The right laws run illicit operators out of town, allowing those playing by the rules to thrive.
And with even the President looking to regulate the vaping industry, KushCo Holdings Inc. is making exactly the right move at the right time…
KushCo’s Exclusive Agreement
On September 16, KushCo announced an exclusive Agreement with De La Rue.
De La Rue is a trusted partner of government, central banks, and commercial organizations. It provides products and services for anti-counterfeiting and authentication solutions.
It is about as mainstream as a company can get – it prints the banknotes for over 60% of the world’s governments.
In its new venture in the cannabis industry, De La Rule will offer custom branded anti-counterfeit security labels. KushCo will now also provide customers with enhanced packaging, unique serialization, e-verification, label tracking, and data capturing capabilities.
“Counterfeit products undermine the legitimate cannabis industry by hurting sales, cheating governments out of tax revenue, and eroding consumer confidence while putting their health at risk. KushCo wants to provide the tools for our clients to have greater transparency and accountability,” KushCo CEO Nick Kovacevich said in a statement.
As CBD grows in popularity, so do the number of legitimate and illegitimate CBD companies on the market. That’s why the NICI team has identified two breakout CBD companies that are worth looking in to. Learn more now.
This won’t be a huge business in its own right, but it will increase the “stickiness” of Kush customers as it goes after larger multi-state operators (MSOs) and the big producers in Canada.
The deal also gives a nod to regulators.
You can expect to see these anti-counterfeiting solutions (primarily hologram stickers like what you see on NBA and MLB authorized merchandise) become required over time.
So when someone goes to buy a vaporizer or cartridge from a dispensary down the road, they will know they are getting an authentic product.
I’ll have another report out to you shortly about other companies that are looking to battle against the vaping epidemic that hit our country.
The exact agent causing the illness has yet to be uncovered with certainty, but we can be fairly certain that it is something that illicit vape manufacturers are introducing into their products – not something that comes from legitimate vaping companies.
awhh you must've bought at $25 or near AH?...poor baby
As of 7/26, Mind Medicine is RTOing into Broadway Gold Mining. This is common in the cannabis sector.
http://www.broadwaymining.com/news/broadway-gold-mining-ltd-announces-proposed-acquisition-of-mind-medicine-inc-and-related-financing-transactions/
My ongoing Shroomstock DD has led me here.
I'll be looking at this company and the "shroomstocks sector" and posting whatever I find.
KushCO warns against black market vaping products
https://finance.yahoo.com/video/kushco-warns-against-black-market-172740790.html
Yahoo Finance Video September 10, 2019, 5:27 PM UTC
Federal and state agencies are investigating an outbreak of severe pulmonary diseases related to vaping. KushCo is the largest maker of vaporizer products, packaging, supplies and accessories. Nick Kovacevich, KushCo co-founder, chairman & CEO, joins from Los Angeles to discuss.
I guess this is my intro to Shroomstocks! The "sector" has been on my radar for about a year now and I'm finally starting to look into it. I'll be posting whatever I find.
https://www.reddit.com/r/shroomstocks/ is a great place to begin as well!
Cronos Group Inc. Enters into Credit Agreement with Cronos Growing Company Inc.
https://ir.thecronosgroup.com/news-releases/news-release-details/cronos-group-inc-enters-credit-agreement-cronos-growing-company
23 AUGUST 2019
TORONTO, Aug. 23, 2019 (GLOBE NEWSWIRE) -- Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos Group” or the “Company”) has entered into a credit agreement (the “Credit Agreement”), as administrative agent and lender, with Cronos Growing Company Inc. (“Cronos GrowCo” or “GrowCo”), as borrower, in respect of a $100 million secured non-revolving term loan credit facility (the “Credit Facility”).
Cronos GrowCo, a 50/50 joint venture owned by Cronos Group and a group of investors led by Bert Mucci (the “Greenhouse Partners”), intends to use the funds available under the Credit Facility to fund the construction of the previously announced custom-built greenhouse (the “Facility”) and for general operating purposes. Completion of construction of the Facility is subject to obtaining the relevant building and occupancy permits and other customary approvals. Commencement of operations at Cronos GrowCo will be subject to obtaining the appropriate licenses under applicable law.
The Credit Facility will mature on March 31, 2031 and will bear interest at varying rates based on the Canadian prime rate. Interest will begin to accrue as of the closing date and will be payable on a quarterly basis until maturity, except that any interest accrued prior to March 31, 2021 will be payable not later than December 31, 2021. The Credit Facility is secured by substantially all present and after acquired property of GrowCo and its subsidiaries. The Greenhouse Partners have also provided a limited recourse guarantee in favour of the Company, secured by the Greenhouse Partners’ shares in GrowCo.
The Credit Agreement contains customary representations and warranties and operating covenants. Advances under the Credit Facility are subject to customary conditions.
“We regularly evaluate our supply chain opportunities, including those within our asset footprint to ensure we are driving the greatest returns and best positioning Cronos Group for long-term success. As part of this work, we have decided to provide the debt funding for the GrowCo joint venture,” said Jerry Barbato, CFO of Cronos Group. “The management team at GrowCo have been great partners, and we value the expertise they continue to bring to this project.”
Dixie Brands' Aceso Hemp expands distribution footprint into California and Nevada with Power Distribution LLC
https://dixieelixirs.com/press-release-new/?id=122522
Aceso Hemp continues to open up new markets, building on its existing 1,000 brick and mortar locations
DENVER, Aug. 19, 2019 /CNW/ - Dixie Brands Inc. ("Dixie" or "the Company") (CSE: DIXI.U), (OTCQX: DXBRF), (Frankfurt: 0QV), one of the cannabis industry's leading consumer packaged goods ("CPG") companies, today announced that its Aceso Hemp subsidiary has signed a distribution agreement with Power Distribution LLC ("Power"). Beginning this week, Power is representing the Aceso Hemp line of cannabidiol (CBD)-infused powder sachets, tincture sprays and dissolvable tablets to retailers in California, expanding into Nevada beginning in September.
Power will target its efforts initially on more than 1,350 retail locations across the highly influential Los Angeles, San Diego and Las Vegas urban centers. The addition of Aceso Hemp to the Power portfolio compliments their existing natural and organic product lines from "better-for-you" and on-trend brands.
"Power is an ideal partner to help get our products on shelves in the trend-setting Southern California and Las Vegas markets," said Hilal Tabsh, Vice President of Marketing and Distribution at Aceso Hemp. "They have built their business around meeting the growing consumer demand for natural products that promote improved health, and these attributes are at the core of the Aceso Hemp brand."
"We are excited to partner with a progressive company like Aceso Hemp and take their products to our customers in the retail channel," said Craig Powers, Vice President of Power Distribution. "Their heritage, reputation, regulatory compliance expertise and extensive portfolio demonstrate a real vision for building a true leadership position in the hemp category."
Aceso Hemp has paired plant science with food science to develop highly targeted broad-spectrum hemp-infused formulations for people looking for natural alternatives in their wellness regimens. Its powders, sprays and tablets are each sold in three varieties called Calm, Soothe and Wellness.
Since the start of 2019, Aceso Hemp has reached agreements with regional distributors in California, Alaska and Vermont, as well as one national distributor. Its products are currently available in more than 1,000 brick and mortar locations. Aceso Hemp plans to continue to grow its network of distributors and retailers to complement its established online channel, www.acesohemp.com.
AriZona iced tea knows its audience, launches weed gummies and vapes
https://thetakeout.com/arizona-tea-weed-gummies-vape-thc-marijuana-dixie-1837273787
At long last, the gap between AriZona iced tea and those AriZona-styled stash tins in every head shop has been bridged. That’s right, folks: AriZona-branded cannabis products are headed for stores that may or may not be near you.
AriZona Beverages has announced an agreement with Dixie Brands, a Colorado-based cannabis company. BevNet reports that AriZona will begin production with its name attached to vape oils and gummies, while keeping an eye on expansion into other products in the future. If you’re wondering about the most obvious next step, Dixie CEO Chuck Smith suggests that THC-infused cans of AriZona could be in the works “down the road.”
The announcement also notes that “while AriZona looked at possible product launches for both CBD and THC products, the regulatory landscape for THC products is currently more defined with less gray space than CBD.” Dixie will develop the new line of products, while AriZona will promote them to any and every fan of its 99-cent tallboys of tea-flavored sugar. (To make it abundantly clear: this is not meant to disparage AriZona, or the valuable public service it provides, in any way whatsoever.)
Plus, if the initial releases go well, Dixie also has its hands in “drinkable elixirs, chocolates, mints, topicals, tablets and taffy.” The possibilities are endless when it comes to AriZona directly connecting with what we’d assume is a sizable chunk of its target audience: stoners who frequently crave one-dollar Arnold Palmers. Dixie’s upcoming AriZona line will likely debut in California and Colorado, ahead of a wider release
Right now the market cap's around 110mm. So AriZona's investment would be around 9 percent. Just wondering how much of the company AriZona is looking to control. If this volume stays constant and pps rises, we may hear AriZona wants to invest more.
Oversold now. Someone just massively dumped this stock.
Great start to the day! Looks like VALX is holding us back from getting over 1.00.
Cronos Stock Still Looks Like a Brilliant Investment for Altria
https://investorplace.com/2019/08/cronos-stock-brilliant-investment-altria/
Despite higher losses, Cronos is still a great long-term bet
By Will Ashworth, InvestorPlace Contributor Aug 12, 2019, 6:40 am EDT
Seven months after Altria (NYSE:MO) acquired 45% of Cronos Group (NASDAQ:CRON) for $1.8 billion, the cigarette company’s CEO, Howard Willard, has got to be tickled pink with his multi-billion-dollar investment in Cronos stock.
Forget Cronos’ losses for a second and consider how much money Altria’s made in just seven months owning Cronos stock.
Altria paid $1.8 billion for 45% of the company. On a per-share basis, that works out to $12.19 a share. As I write this, CRON stock is trading at $13.88, providing Altria with an unrealized gain on its 147.7 million shares of $250 million or 24% annualized.
As for the warrants to up its ownership position to 55%, those are in the money by 31 cents; it has the right to purchase approximately 73.7 million shares at $13.57 a share.
The 55% ownership stake is based on paying $2.8 billion for approximately 221.4 million shares.
However, it’s important to point out that the exchange rate between when the deal was made in December and the execution of the warrants at some point in the next four years will have a bearing on the number of shares Altria actually receives, and the number of shares issued by the company in the future will also affect the cigarette company’s ultimate ownership stake.
Regardless of the final numbers, CEO Howard Willard has got to be happy to date with the company’s investment.
The Future Looks Bright
Although investors didn’t like the news that Cronos expects to generate higher losses in the second half of the year due to higher spending for both its Israeli research facility and increasing capacity for Peace Natural, its medical marijuana brand; Stifel analyst Andrew Carter sees the announcement as a good thing.
COMPARE BROKERS
“We would be more concerned if … they were talking about cost discipline in the organization and trying to rein in investments at this point in the game,” Carter stated August 8.
The reality is that Cronos is making a lot of moves to position itself for future growth, moves upon which Altria would have to sign off as its largest and controlling shareholder.
I wouldn’t be surprised if the recent $300 million purchase of Los Angeles-based Redwood Holding Group, a manufacturer of hemp-derived cannabidiol (CBD) infused skincare and other hemp-derived products, was an idea hatched by Altria.
“Rob and Cindy have built a differentiated, best-in-class platform with hemp-based CBD formulations that stand for quality and consistency,” Cronos CEO Mike Gorenstein stated August 2.
The move indicates just how vital the hemp business is. As we’ve seen from other companies’ moves including Canopy Growth (NYSE:CGC) and Tilray (NASDAQ:TLRY), as as the cannabis industry continues to mature and evolve, hemp will play a big part in its growth and evolution.
The Bottom Line on Cronos Stock
Have a look at the company’s Q2 2019 press release.
You’ll see that it’s got a lot of exciting initiatives are happening that will translate into future revenue generators for the company.
Don’t merely look at the kilograms of dried flower sold (1,584 kilograms sold, 232% higher than a year earlier) but pay attention to the big picture.
Altria isn’t thinking about the kilograms sold in 2019, it’s thinking about the multiple revenue streams generating hundreds of millions of dollars 5-10 years from now.
Do you really think that Howard Willard is worried about a $26 million loss in the first six months of the fiscal year? Altria generates billions in free cash flow.
If I’m Willard, I’d be pleased with Altria’s investment in Cronos stock so far.
At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities.
Vapes and edibles in October but it'll take 60 days to approve the items for market. So nothing will be on sale till December.
It's August so trading is low.
I expect volume to pick up after Labor Day here in the US and once the agreement is finalized and AriZona makes the 10mm investment.
Great news nonetheless and shows they're actively making moves into the beverage/edible/vape space.
Motley Fool has two writers that absolutely hate CRON. Not even gonna mention their names, they're so annoying. They both seem to have a hard on for anything CRON related.
It all comes down to their view on the Cannabis industry as a whole. They're very close minded. They believe the only way in this industry is to be the largest cultivator. They believe Cannabis will become one huge commodity. And that's fine to look at Cannabis that way but to ignore ALL the other higher margin derivative products that this sector will think of, design and innovate is just stupid and short sighted IMO.
Every time someone mentions Cannabis as a commodity to me, I say "yeah, it'll be a commodity at some point but how many coffee bushes does Starbucks grow every year? How many coffee beans does Dunkin grow every year?". The answer is they don't. 20 years ago, to NOT invest in Starbucks based solely on coffee bush cultivation would be STUPID. The coffee beverage market has been so tweaked that Starbucks, Tim Horton's and Dunkin have 20 other higher margin specialty drinks on the menu. It's beyond dumb to look at the Cannabis sector in that manner.
I say let all these other LPs spend a gazillion dollars and dilute their companies into oblivion trying to grow a billion plants. Cron will just buy their surpluses at a penny on a dollar and turn it into higher profit derivatives. Altria does the same.
The FDA has nothing to do with THC or THC+CBD edibles. Those are regulated by each legalized state separately. Dixie has to work with local state manufacturers(or manufacture themselves in each state) and be compliant with each state's regulations.
Since CBD is federally legal, the FDA has placed their guidelines and all have to comply. Also, I'm pretty sure that regulation is for CBD added to drinks and food that aren't already manufactured with it(bars, restaraunts, coffee shops etc can't just add CBD to anything they want just yet).
Generation-Defining Opportunity': Dixie Brands, Arizona Iced Tea Partner On Cannabis-Infused Products
https://www.benzinga.com/node/14232957
Jayson Derrick
August 8, 2019
Cannabis consumer packaged goods company Dixie Brands (USA) Inc (OTC:DXBRF) announced an agreement Wednesday with iced tea maker AriZona to explore the production of cannabis-infused products.
What Happened
Dixi Brands and AriZona said in a press release that they signed a binding letter of intent Aug. 2 to partner for the production, distribution and sale of cannabis-infused products containing tetrahydrocannabinol — THC.
As part of the agreement, Dixie Brands will develop, formulate, manufacture and distribute a portfolio of AriZona-branded THC products, the companies said.
AriZona, through its affiliated entity Herbal Enterprises, will handle branding and product conceptual design.
Why It's Important
AriZona is well-positioned to "lead and seize" a new "generation-defining" opportunity like cannabis-infused beverages, AriZona Chairman Don Vultaggio said in a statement.
Dixie Brands CEO Chuck Smith called the partnership a "watershed moment for the popularization and expansion of the cannabis sector overall, and is another large step forward for Dixie Brands' strategy to build a house of famous cannabis CPG brands."
What's Next
Dixie Brands and AriZona have 45 days to strike a definitive agreement from the signing of the letter of intent. If finalized, AriZona could make a strategic investment in Dixie Brands worth up to $10 million, the companies said.
The initial term of the partnership is three years, with an option to renew for up to two additional terms of two years each.
Dixie Brands shares were down 2.04% at 75 cents at the time of publication Thursday.
15.70 pre-market this morning. Crazy drop.
Dixie's up over 30% over last 2 days in the middle of the dead slow summer and during an overall downtrend in the Cannabis sector. I'd say this Dixie/Arizona news, CRON's financial report this morning and Aphria's report last week are bringing the sector back for the fall.
Unaudited Condensed Interim Consolidated Financial Statements
For the Three and Six Months Ended June 30, 2019 and June 30, 2018
https://ir.thecronosgroup.com/static-files/8a7359ed-e428-40dd-950a-9c84dcb113b4
Management’s Discussion and Analysis of Financial Condition and Results of Operations
For the Three and Six Months Ended June 30, 2019
https://ir.thecronosgroup.com/static-files/87b68cdf-612c-4d1e-aae9-e4a1a89e39ab
Great report. Great for the sector!
Arizona™ Beverages and Dixie(OTC:DXBRF) news was released this morning. Binding LOI. DXBRF up 23% today - https://investorshub.advfn.com/boards/read_msg.aspx?message_id=150369837
https://www.reddit.com/r/weedstocks/comments/cn5ps9/arizona_beverages_and_dixie_brands_form_strategic/
https://dixieelixirs.com/press-release-new/?id=122520
The iconic AriZona™ brand becomes the first mega brand to extend into THC cannabis market
DENVER and WOODBURY, NY, Aug. 7, 2019 /CNW/ - Dixie Brands Inc. (CSE: DIXI.U), (OTCQX: DXBRF), (Frankfurt: 0QV), a leading cannabis CPG company, and AriZona, maker of the #1 selling iced tea in America, signed a binding letter of intent on Friday, August 2nd, 2019, to partner for the production, distribution and sale of cannabis-infused products containing tetrahydrocannabinol (THC).
Under the terms of this deal between Dixie Brands Inc., and the AriZona™ brand, through its affiliated entity, Herbal Enterprises, LLC, will direct brand and product conceptual design; while Dixie Brands will develop, formulate, manufacture and distribute the new portfolio of AriZona branded THC infused consumer packaged goods.
"AriZona has always led the way in product innovation," said Don Vultaggio, Chairman, AriZona Beverages. "The cannabis market is an important emerging category, and we've maintained our independence as a private business to be positioned to lead and seize generation-defining opportunities exactly like this one. The Cannabis category is an ideal space to bring the flavor and fun of AriZona into new and exciting products, and we selected Dixie Brands as our partner to bring these products to market after touring their best in class manufacturing facilities, and spending considerable time building a strong relationship with their management. Both companies share a heritage of quality, excellence in manufacturing, and doing things the right way, and we look forward to all this partnership has in store."
"AriZona is a power brand," said Chuck Smith, CEO Dixie Brands, "and the most iconic and recognized CPG brand to extend into the cannabis market, providing the evolving cannabis consumer with a fun and flavorful experience alongside an iconic brand they know and love. For nearly a decade Dixie Brands has crafted award-winning cannabis-infused products creating some of the most recognized and trusted brands in the industry, and we are thrilled to have found a partner that shares our values. This partnership marks a watershed moment for the popularization and expansion of the cannabis sector overall, and is another large step forward for Dixie Brands' strategy to build a house of famous cannabis CPG brands."
Based on the signed letter of intent (LOI), Dixie Brands and AriZona agree to complete definitive agreements within forty-five (45) days after the date of the LOI, or such other date mutually agreed to in writing by the companies, including a license agreement that shall grant Dixie Brands the right to use certain AriZona trademarks, brand and other necessary intellectual property in conjunction with Dixie's extensive formulation, manufacturing and distribution expertise.
In connection with the execution of the binding letter of intent, but subject to the execution of definitive agreements and the receipt of any additional required approvals, AriZona or its affiliate may complete a strategic investment in Dixie Brands through the exercise of warrants granted to AriZona equal to the value of up to USD$10,000,000 in subordinate voting shares of Dixie Brands at an exercise price of USD $0.59 for a term of 24 months. Upon signature of the definitive agreement the company will make an announcement with the details of the agreement.
The initial term of the partnership is three years, with an option to renew for up to two (2) additional terms of two (2) years each.
This is getting alotta notice on r/weedstocks. This may be a real run up.