AriZona Beverages will lend its name to a line of THC-infused products, announcing today that it has signed a letter of intent for a three-year partnership with cannabis products maker Dixie Brands Inc.
Speaking with BevNET, Dixie CEO Chuck Smith said the partnership — which at the end of its term can be renewed two times for up to four years — is likely to produce a variety of THC-infused products under the AriZona name, starting with vape pens and gummies.
Smith said that while AriZona is most known for its beverages, the company decided to focus first on vape pens and gummies in order to “speak to the broad base of consumers in the cannabis industry today.” He noted that gummies are the largest selling infused products in the cannabis market while vapes are the largest selling concentrate product. He added that cannabis-infused beverages is a growing segment and that Dixie has “a great opportunity” to create AriZona branded THC drinks “down the road.”
As part of the agreement, AriZona may purchase up to $10 million in shares of Dixie Brands through the exercise of warrants valued at $0.59 per share for a term of up to 24 months from signing the partnership. Dixie Brands, which is headquartered in Colorado, is a publicly traded company on the Canadian Stock Exchange.
Published: August 07, 2019