Dixie will also manufacture and distribute Khiron’s Kuida brand of cannabidiol (CBD)-based cosmeceuticals in the US, targeting the growing Hispanic population.
Completion of the JV is subject to TSX Venture Exchange approval.
By combining Dixie’s market-ready portfolio of cannabis-infused products with Khiron’s established footprint throughout Latin America, the companies said they aim to establish leadership in one of the world’s fastest-growing cannabis markets. The agreement also creates a framework for the development of new products and brands tailored to Latin America, allowing Dixie and Khiron to take full advantage of opportunities resulting from cannabis legalization throughout the region.
“This joint venture is a combination of two companies coming together to bring great brands with highly complementary products, distribution capabilities and expertise. The joint venture gives us important access to expand the reach of our Kuida cosmeceutical brand into the US market, and by introducing a proven set of product formulations, we can more effectively leverage the infrastructure and relationships we are putting in place across Latin America,” said Alvaro Torres, co-founder and CEO of Khiron Life Sciences.
According to Chuck Smith, president and CEO of Dixie Brands, the joint venture will “launch Dixie’s portfolio of brands throughout Latin America and demonstrates the value and scalability of the product portfolio we have developed and marketed over the past nine years. Khiron is the clear leader in the Latin American cannabis space with an excellent operating team and a growing presence across the region. We look forward to aggressively supporting this push into Latin America as Dixie executes against its plan to expand into new international markets and build the leading global CPG cannabis company.”
Khiron will operate the JV from its base in Bogota, Colombia with responsibility for regulatory matters, cultivation, manufacturing and distribution. Dixie will contribute intellectual property including its extensive brand portfolio, product formulations and production processes. The two companies will collaborate on the development of new brands and products as appropriate for local Latin American markets.