Khiron Life Sciences Corp. (“Khiron“) (TSXV: KHRN), (OTCQB: KHRNF), (Frankfurt: A2JMZC), an integrated cannabis company with core operations in Latin America, and Dixie Brands Inc. (“Dixie“) (CSE: DIXI.U), (OTCQX: DXBRF), (Frankfurt: 0QV), one of the cannabis industry’s leading consumer packaged goods companies, announced today that their previously disclosed 50/50 Joint Venture (“JV“) has received conditional approval from the TSX Venture Exchange (“TSXV“), subject to receipt of customary closing documentation. With this approval in place, Khiron and Dixie will begin the process of commercialization of the Kuida cosmeceutical product line in the U.S. marketplace, as well as the introduction of Dixie’s CBD-infused products into Latin America.
Through the JV, Dixie will be responsible for the distribution of Khiron’s portfolio of Kuida cosmeceutical products in the U.S. Kuida products will be broadly distributed through Dixie’s established distribution network to U.S. consumers, and are expected to have particular appeal to the growing U.S. Hispanic population, estimated at nearly 60 million.
Further, the conditional TSXV approval allows for the manufacture and commercialization of Dixie’s products in Latin America, leveraging Khiron’s legislative, sales and marketing abilities and Dixie’s extensive and market-proven product line. It is anticipated that Dixie CBD-based products will be commercialized in Latin America beginning in 2020. The JV 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 advancements in cannabis legalization in the region. The conditional TSXV approval covers operations in Colombia, Chile and Uruguay; additional applications will be made to the TSXV as more Latin American countries legalize the use of cannabis.
Alvaro Torres, Khiron CEO and Director, comments: “With a strong JV leadership, sales and marketing team in place, this regulatory approval positions us to accelerate activities in both our core Latin American markets and in the U.S. Bringing the full Kuida product line to U.S. consumers is an important development as we build capacity and market access to expand Kuida brand distribution into new jurisdictions globally.”
Chuck Smith, President and CEO of Dixie Brands, stated, “We are very excited about our strong partnership with Khiron and the rapid progress we are making with them on both major initiatives. The Kuida product line is an excellent fit for our growing CBD distribution network which is on pace to reach several thousand brick and mortar locations in the U.S. by the end of the year in addition to a robust online presence. Introducing the Dixie portfolio to Latin Americabeginning in 2020 will be an important milestone in our international expansion.”
Progress towards market entry for Kuida into the U.S. and Dixie brands in Latin America is advancing, with an internationally experienced and well-connected sales and management team now in place to lead activation of the JV strategy. In June, Kuida was previewed to U.S. industry leaders at the influential FounderMade Discovery Show East in New York City, an elite summit for next generation brands, and in July, at Cosmoprof North America, targeting over 40,000 retail buyers, distributors, and beauty industry professionals.
Launched in October 2018, Kuida brings the benefits of Cannabidiol (CBD) to a comprehensive portfolio of skin and body care products. Kuida remains the only CBD skincare product line widely available at retail in Colombia with distribution in over 175 points of sale across the country, as well as leading e-commerce platforms.
SOURCE Khiron Life Sciences Corp.