Dixie Brands Inc. (“Dixie”) (CSE: DIXI.U), (OTCQX: DXBRF) (Frankfurt: 0QV) (“Dixie”) and BR Brands, LLC (“BR Brands”) announce that the previously disclosed reverse takeover transaction (the “Transaction”) of Dixie by BR Brands will be completed on Saturday, October 31, 2020. The combined company has been renamed BellRock Brands Inc. (“BellRock”), and Dixie’s stock symbol on the Canadian Securities Exchange will be changed to “BRCK.” Dixie anticipates that trading of its shares will recommence on or about November 4, 2020.
“We are pleased to announce the upcoming closing of the business combination of BR Brands and Dixie. This transformative transaction was the result of a long-term strategic and value focused approach to building a dominant house of brands within the cannabis sector,” said Andrew Schweibold, former Chairman of BR Brands and new Chairman of BellRock. “BellRock unites two of the most established brands in cannabis to create an IP and brand-focused multi-state operator, unique in its strategy and scale. Under BellRock management, the platform is poised for exponential growth, through both M&A and organic R&D, and is purposely built to cater to all of the industry’s fastest growing segments.”
Mary’s, founded in 2013, is the innovator of cannabis and hemp-infused products for adult use, medical, skincare, wellness and pet markets, and the company’s robust library of intellectual property includes a U.S. patent for its acclaimed transdermal technology. Since 2010, Dixie has created a wide array of award-winning beverages, gummies, mints, and taffies as well as two well recognized CBD supplement brands; Aceso Wellness and Therabis. Together, the BellRock brands offer one of the largest spectrums of high-quality consumer packaged goods in the cannabis industry. With 11 brands and over 200 SKUs, BellRock reaches nearly every key consumer group and addresses the needs of a diverse cannabis consumer base. The BellRock manufacturing and distribution footprint continues to expand and currently spans nine states, and the company owns or manages production facilities in its largest markets.
“The joining of BR Brands and Dixie is unique in that together, BellRock possesses one of the industry’s broadest branded product portfolios catering to the growing and ever-evolving cannabis consumer. Our portfolio is one of the most diversified in the industry and is based on our relentless pursuit of enhancing the consumer experience,” said Chuck Smith, Chief Executive Officer of BellRock Brands.
BellRock brings together a seasoned leadership team of CPG and cannabis executives with unrivaled financial, capital markets and consumer brands expertise. The Board of Directors of BellRock will be comprised of three nominees of BR Brands and two nominees of Dixie. Andrew Schweibold, previously Chairman of BR Brands, will serve as Chairman of the Board. Chuck Smith, former President and Chief Executive Officer of Dixie, assumes the role of BellRock CEO and joins the BellRock Board. Sat Joshi, former Chief Executive Officer of BR Brands, steps down from the executive position and joins the Board. The Board of Directors also includes Jonathan Rosenthal, Co-Founder and Managing Partner at Rose Capital, and Brian Graham, a seasoned CPG industry executive.
BellRock began executing its integration strategy earlier in the year, already yielding operational synergies and unlocking opportunities to grow revenue and cash flow. The company has already unified its sales team in Colorado and efforts to consolidate manufacturing and sales in other key markets are already underway.
“Our mission is to build the first national cannabis house of brands,” says Smith, “We aim to accomplish this goal by earning our customers’ loyalty and trust, and want BellRock to be known for delivering the highest quality, most consistent and broadest portfolio of cannabis infused products in the industry.”
BellRock remains committed to growing shareholder value. The company’s buy-and-build growth strategy employs a three-pronged approach of enhancing its platform through strategic acquisitions, prioritizing profitable organic revenue growth, and continuously optimizing its costs and capital structure. On a pro forma basis, assuming BR Brands and Dixie had combined as of January 1, 2020, BellRock expects to generate in excess of $40 million in revenue in 2020, with clear plans to deliver exponential revenue and cash flow growth in 2021 and beyond.