Arizona, Dixie Brands to unveil collection of THC-Infused cannabis products

The iconic AriZona™ brand becomes the first mega brand to extend into THC cannabis market

Dixie Brands Inc. a leading cannabis CPG company, and AriZona, maker of the #1 selling iced tea in America, signed a binding letter of intent  to partner for the production, distribution and sale of cannabis-infused products containing tetrahydrocannabinol (THC).

Under the terms of this deal between Dixie Brands Inc., and the AriZona™ brand, through its affiliated entity, Herbal Enterprises, LLC, will direct brand and product conceptual design; while Dixie Brands will develop, formulate, manufacture and distribute the new portfolio of AriZona branded THC infused consumer packaged goods.

Based on the signed letter of intent (LOI), Dixie Brands and AriZona agree to complete definitive agreements within forty-five (45) days after the date of the LOI, or such other date mutually agreed to in writing by the companies, including a license agreement that shall grant Dixie Brands the right to use certain AriZona trademarks, brand and other necessary intellectual property in conjunction with Dixie’s extensive formulation, manufacturing and distribution expertise.

In connection with the execution of the binding letter of intent, but subject to the execution of definitive agreements and the receipt of any additional required approvals, AriZona or its affiliate may complete a strategic investment in Dixie Brands through the exercise of warrants granted to AriZona equal to the value of up to USD$10,000,000 in subordinate voting shares of Dixie Brands at an exercise price of USD $0.59 for a term of 24 months. Upon signature of the definitive agreement the company will make an announcement with the details of the agreement.

The initial term of the partnership is three years, with an option to renew for up to two (2) additional terms of two (2) years each.