KHRNF stock is on an upswing this week, and its latest news might push it higher. Khiron Life Sciences Inc. (TSXV:KHRN) (OTCQB:KHRNF) announced this morning it has teamed up with Dixie Brands Inc. (OTC:DXBRF) to form Dixie Khiron JV Corp.
Despite the positive news, KHRNF stock is trading red today. Investors may not be buying up this stock immediately, but Khiron's push into the potential $12 billion Latin America cannabis market is not something to ignore.
Dixie Khiron JV Corp
The Khiron Life Sciences and Dixie Brands venture was announced in January of this year, but Khiron has been steadily working in the Latin American cannabis space from the start. The new partnership has a 50/50 split and will take advantage of the complementary strengths of both companies to "manufacture and distribute cannabis-infused products to the Latin American market."
Khiron Life brings its established footprint in the Latin America market to the table, and Dixie Brands provides a portfolio of more than 100 CBD-infused products. In the agreement, Dixie Brands will also manufacture and distribute Khiron's Kudia brand of CBD-based cosmeceuticals in the US. This new venture aims to capture first-mover advantage in a region of 620 million people. KHRNF stock may be trading red today, but this announcement is something to take note of.
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Growing Latin American Cannabis Market
Why this venture is such a big deal stems from the fact that Latin America is among the world's fasting growing cannabis markets. According to Prohibition Partners, Latin American cannabis sales are expected to reach $12 billion by the year 2028.
CEO of Khiron Life Sciences, Alvaro Torres, said in the press release that legalization across Latin America is increasing and urban populations are becoming much more affluent.
Torres continued:
"Despite these attractive dynamics, there are relatively few significant competitors, as many companies have targeted other global regions. We believe we have an opportunity to establish ourselves as a dominant player in this market."
KHRNF Stock Movement
Despite the positive news, Khiron stock is currently trading red on both the TSXV and OTCQB. On the OTCQB, KHRNF is trading at $2.55 a share, down -$0.04 (-1.87%). On the TSXV, KHRN is trading at $3.41 a share, down -$0.03 (-0.87%).
However, Dixie Brand's stock is seeing significant share gains, likely from the recent news. At the time of writing, DXBRF is trading at $0.825 a share, up +$0.09 (+13.01%) on the OTC Pink.
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