Denver, Colorado-based cannabis beverage maker Dixie Brands is considering launching an initial public offering and listing in Canada aiming toward expansion and acquisitions early next year, according to a Bloomberg report. Dixie CEO Chuck Smith said the company will have revenues of $20 million this year and anticipates revenues of $50 million next year.
“We need access to capital, we need liquidity because this growth is very expensive. We’re going to continue to acquire brands or innovate them.” – Smith to Bloomberg
The company closed a $4 million funding round this month with plans to expand into 10 states. Currently, the company operates in four states. The company was founded by Smith in 2009 and he remains its majority shareholder.
If the company seeks to go public it couldn’t do so in the U.S. due to federal law. In Canada, medical cannabis is federally legal and companies have access to the national exchanges.
A 2017 report from BDS Analytics found edibles ranked third in terms of market share in Colorado, Washington, and Oregon in 2016. According to the report, the products captured 12 percent ($269.8 million) of the $2.33 billion cannabis market. In Colorado, beverages comprised 7 percent of total edibles sales, or about $1 million.
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