U.S. Maker of Marijuana Drinks Dixie Brands Mulls IPO in Canada

The U.S. maker of marijuana beverages Dixie Brands Inc. is mulling an IPO by the end of this year or early next year, Bloomberg reported on Thursday.

In addition to an IPO, the Denver-based Dixie Brands is currently seeking capital for expansion and acquisitions.

Its CEO Chuck Smith told Bloomberg on Thursday in an interview on the sidelines of the Cannabis Invest U.K. conference in London that Dixie Brands, which hasn’t mandated bankers yet, is eyeing a listing in Canada.

Unlike the U.S. federal government, which prohibits marijuana, the recreational use of cannabis is expected to be legalized in Canada this summer.

However, Dixie is already planning to expand its operations into up to 10 more states, up from four states currently that include Colorado and California.

Smith said Dixie will have about $20 million in revenue this year and up to about $50-million in 2019.

“We need access to capital, we need liquidity because this growth is very expensive,” said Smith, who founded the company in 2009 and remains its majority shareholder.

“We’re going to continue to acquire brands or innovate them.”

Dixie, which makes cannabis-infused berry lemonades, root beers, and chocolates, has closed a funding round of $4-million this month.