San Diego’s Medical Marijuana Inc. has expanded its hemp-derived line of cannabidiol products — similar to marijuana but lacking the high-producing THC component — with the acquisition of Dixie Botanicals in April, and last week began selling the Dixie brand from its new headquarters in Poway.
Medical Marijuana’s HempMeds subsidiary acquired Colorado’s Dixie Botanicals — a component of Dixie Elixers — for $6.8 million after the two entities jointly owned the business unit through a Red Dice Holding fund for about a year.
With the acquisition, HempMeds now owns the rights to all Dixie Botanicals cannabidiol (CBD) products, intellectual property, name and branding.
Edgar Montero, vice president of HempMeds, said he expects the company’s San Diego employees to increase from 52 to about 150 by the end of the year. The new hires will be made across the company’s divisions.
Montero said sales is an area of particular need because the California CBD market isn’t as familiar with the Dixie name as Colorado customers were. With four buildings in Poway, Clairemont and La Jolla, HempMeds doesn’t see an immediate need for more real estate.
Hemp-derived CBD products are legal in all 50 states and in 40 countries, and are said to have benefits similar to medical marijuana, but without the high associated with the THC in marijuana. HempMeds is now selling Dixie Botanicals’ CBD oil capsules, tinctures and salves, with plans to expand.
“We do intend to extend the line. We want to bring out more delivery methods and different varieties of products,” said Marcos Agramont, director of operations at HempMeds. “We’re planning on adding a variety of oils, a health and beauty line, as well as doing a vapor line, which is really booming right now.”
Montero said the start of Dixie Botanicals sales under HempMeds ownership brings the best quality products to California and makes HempMeds the largest CBD distributor in the United States.
“What people see in Dixie is quality,” he said. “So we maintained all that when we brought the brand to California. We have great products, great formulations, great quality and are the top source of CBD nationwide.”