Dixie Brands Inc. and Khiron Life Sciences Corp. have signed a binding letter of intent to establish a 50/50 joint venture to introduce a full line of cannabis-infused products to the Latin American market.

As part of the agreement, “Dixie will also manufacture and distribute Khiron’s Kuida® brand of CBD-based cosmeceuticals in the U.S., targeting the growing Hispanic population,” reports Dixie Brands, which has been formulating THC- and CBD-infused products since 2009 and is one of the cannabis industry’s leading consumer packaged goods (CPG) companies.

As per the letter of intent, Khiron will operate the joint venture from its base in Bogota, with responsibility for regulatory matters, cultivation, manufacturing and distribution; Dixie will contribute intellectual property, including its extensive brand portfolio, product formulations and production processes; and the companies will collaborate on developing new brands and products as appropriate for local Latin American markets.

“By combining Dixie’s market-ready portfolio of cannabis-infused products with Khiron’s established footprint throughout Latin America, the companies aim to capture first-mover advantage and establish leadership in one of the world’s fastest-growing cannabis markets,” the Dixie press release notes.

“The agreement 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 cannabis legalization throughout the region,” it adds.

“The joint venture gives us important access to expand the reach of our Kuida® cosmeceutical brand into the U.S. market, and by introducing a proven set of product formulations, we can more effectively leverage the infrastructure and relationships we are putting in place across Latin America,” says Alvaro Torres, co-founder and CEO of Khiron, a vertically integrated medical cannabis company focused on Latin America.

“This joint venture will launch Dixie’s portfolio of brands throughout Latin America and demonstrates the value and scalability of the product portfolio we have developed and marketed over the past nine years,” states Chuck Smith, president and CEO of Dixie Brands. “We look forward to aggressively supporting this push into Latin America as Dixie executes against its plan to expand into new international markets and build the leading global CPG cannabis company,” Smith adds.

Completion of the joint venture and the commencement of operations are subject to the execution of definitive agreements and receipt of all required regulatory approvals, including final acceptance of the TSX Venture Exchange.