Dixie Brands (CSE: DIXI.U) (OTC: DXBRF) is preparing to launch its cannabis products in Michigan.

The company entered into a joint venture licensing agreement with Michigan’s Choice Labs to sell its THC-infused products in Michigan.

Choice Labs is a medical marijuana firm licensed by the state of Michigan to grow, process and sell cannabis.

Dixie Products to Hit Shelves Soon

Dixie plans to offer Michigan’s 300,000 medical marijuana patients its THC-infused gummies, flavored Elixirs, pressed pills, mints and tinctures, as well as its THC- and CBD-infused topical balms.

The company will expand its offering in the state over time to include its Dixie Elixirs beverages and other SKUs drawn from its portfolio of more than 100 products across 15 categories.

Dixie-branded products will be available to all provisioning centers in Michigan. The company has already secured purchase orders and expressions of interest from several chains and individual provisioning centers.

The companies expect to start selling THC-infused products later this month.

Dixie Expansion

Michigan is the first new U.S. state Dixie has entered in 2019.

The company set a goal to enter four-to-six new states this year, in addition to its existing operations in California, Colorado, Maryland and Nevada.

The company says that its 2019 expansion plans are fully funded, following a $25 million financing completed in October 2018.

Total retail sales of THC products in Michigan are estimated to exceed $750 million by 2020, according to New Frontier Data, making it the sixth largest cannabis market in the U.S.