BUILDING THE FIRST TRUE CANNABIS CPG PLATFORM...product renovation and new product development. 5 ... CA: recently relaunched, expecting >50% within 12 months ... Use of proceeds:

CSE: DIXI.U | Frankfurt: 0QV | OTC:DXBRF

BUILDING THE LEADINGCPG PLATFORMIN CANNABIS

DIXIE BRANDS INC.CANNABIS CAPITAL CONFERENCE PRESENTATION

APRIL 17 & 18, 2019



Forward-Looking Information

Certain statements in this presentation may constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Dixie Brands Inc. (“Dixie” or the “Company”) and its subsidiary entities or the industry in which they operate, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this presentation, such statements use words such as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this presentation. These forward-looking statements involve a number of risks and uncertainties.

These risk factors are discussed in detail under the heading "Risk Factors" in the listing statement filed on SEDAR. New risk factors may arise from time to time and it is not possible for management of the Company to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance or achievements of the Company to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

The forward-looking statements contained herein are based on certain key expectations and assumptions, including that: (i) there will be no material adverse competitive or technological change in condition of the Company’s business; (ii) there will be a demand for the Company’s products that the Company has accurately forecast; and (iii) there will be no material adverse change in the Company’s operations, business or in any governmental regulation affecting the Company or its suppliers.

Although the forward-looking statements contained in this presentation are based upon what management believes to be reasonable assumptions, Dixie cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation. The Company undertakes no obligation to update or revise any forward-looking statements contained in this presentation, whether as a result of new information, future events or otherwise, other than as required under applicable securities legislation.

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Introducing Dixie Brands

• A leader in the cannabis industry since 2010.

• One of the industry’s most recognized

consumer brands.

• More than 100 SKUs across 15 product

categories – both THC and CBD.

• Proven track record of developing,

manufacturing and commercializing products.

3


Multi-state operator (MSO) focused on high-return segments of the value chain

4

Cultivation

Extraction

Product Development

Manufacturing

Branding

Distribution

Retail

Capital-intensive, prone to commoditization

Years of R&D, proven formulations

GMP level capability, proven SOP’s, consistent delivery

Reputation, marketing campaigns, in-depth market knowledge

People on the ground, relationships with retailers, broad product portfolio

Costly to build out a meaningful presence across all urban markets

DIX

IE’S

FO

CU

S

Proven extraction expertise


Dixie Brands by the Numbers

5

years in business established Companies CPG company

9 3 1


9 Years in Business

6

• Established. Known. Trusted.

• Unparalleled heritage.

• Industry leading R&D capability & formulations.

• Experts in commercial food grade manufacturing.

• Deep packaging & compliance expertise.

• Extensive Intellectual Property portfolio.

• Market expansion experience.

• Deeply rooted relationships – retail, vendors, producers,

suppliers & industry.


3 Established Businesses

7

https://vimeo.com/294180809


Dixie’s goal is to be the #1 CPG company in the cannabis industry

8



Utilizing Deep Experience to Optimize Profit Pools

10

Fu

nctio

na

l

Fu

n

Health & Wellness

WorshippersExperience

Explorers

CBD (Hemp) THCCBD (Marijuana)


Clear strategy for industry leadershipTo control manufacturing and distribution in all of the markets we participate in, simultaneously building a global house of brands known for its quality and efficacy.

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The roadmap to DIXIE Brands becoming the largest CPG manufacturer in the industry:

Global Domination!

Expand into

new markets.

2019: 10+ states plus

Canada & LatAm

1 2Control Production!

Build manufacturing

operations in each market,

using deep experience to

accelerate supply

effectively & efficiently.

3Be Masters of Our Destiny!

Maximize control over route

to market, sales & marketing

efforts in each market.

4Satisfy Consumer Needs!

Use evolving, localized

consumer insight to drive

product renovation and new

product development.

5Leverage for Growth!

Utilize tried & tested

infrastructure to drive

revenue growth both

organically and via

focused M&A.


Control field marketing and sales – become a valued resource for retailers

Currently selling in > 700 storesTargeting 1000+ stores by Q4 2019CO, NV, MD: 80-95%CA: recently relaunched, expecting >50% within 12 months

Selling into majority of states

DTC / ONLINE

▪ Direct to consumersthrough our owned e-commerce channel

BRICK & MORTAR

▪ Access to >5,000 retail locations by Q4 2019

▪ Indirect via distribution and manufacturers rep groups

In the US…

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Entered in 2019

Entered in 2018 or earlier

Additional target states

MICHIGAN• Newest market opened• 300,000 medical patients

!

THC

CBD


Internationally…

• Licensing agreement with Auxly Cannabis for manufacturing and distribution

• Well-positioned to succeed within evolving regulatory framework

• Broad IP portfolio gives Dixie first-mover advantages on virtually any products approved for sale

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Internationally…

RAPIDLY GROWING MARKET AS CANNABIS IS LEGALIZED ACROSS THE REGION

• Estimated spending of $12 Billion by 2028 (Prohibition Partners)

• 68 million medical patients could benefit (Quintiles MIS)

• Six megacities of >10 million

14

Khiron entered market.

Medical cannabis regulation proposed.

Khiron positioning for licenses

Entering subject to completion of

NettaGro acquisition.

of total population of

430M620 million


Dixie to distribute Khiron’s Kuida®

cosmeceuticals in U.S. market; expected to

have particular appeal to Hispanic-American

population of 60 million

LATIN AMERICAN EXPANSION: 50/50 JOINT VENTURE WITH KHIRON LIFE SCIENCES

COMBINES THE COMPLEMENTARY STRENGTHS OF BOTH COMPANIES

• Dixie: IP portfolio of >100 products, manufacturing processes, SOPs, product innovation

• Khiron: Licenses, distribution footprint, regulatory expertise, local relationships

• Companies to collaborate on new brands and products

DIXIE-KHIRON AIMING TO CAPTURE FIRST-MOVER ADVANTAGE

• Potential to establish a dominant position as fewer competitors are currently targeting the region

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Diverse

‘needs based’

portfolio

Robust

Innovation

Pipeline

Clearly

Defined

Brands

Streamlined

Route to

Market

Building a True House of Brands

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Integrated

Comms

Plans

Brand Health

Measurement

CONSUMER PACKAGED GOODS PLATFORM

Deep

Consumer

Understanding



Executive Team

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CPG industry veterans with experience in wine & spirits, energy drinks, pet food, retail, finance & banking


Financial position: FULLY-FUNDED BUSINESS PLAN

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All figures in U.S. dollars

Raised $25 million in oversubscribed Series C financing closed October 1, 2018▪ Use of proceeds: $18 million to fund expansion strategy

▪ Debt-free

Public listing to fund opportunistic corporate development activities through RTO on November 29, 2018


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STRONG REVENUE AND EBITDA GROWTH PROSPECTS

2018

Revenue outlook

$7-9M

$65-75M

4 states

Licensing revenue model

New law to allow ownership

of OpCo: recognize wholesale revenue

Re-entered market Q4 2018;

full year of sales

Continue growth in NV, MD.

Enter 4-6 new states in 2019

(MI, …)

Expand distribution +

portfolio expansion via new products

2019

Revenue outlook

Colorado

California

All other

states

Aceso,

Therabis

EBITDA: ~10-15%

*

* Aggregated revenue across all markets and activities

$140-160M

2020

Revenue outlook


Investment Highlights

• Broadest portfolio of revenue-producing products in the industry.

• Extensive Intellectual Property relating to formulations,

technology, manufacturing, packaging and regulatory compliance.

• Proven ability to expand and deploy quickly in new markets.

• Established distribution channels with proven sales, consumer

and field marketing capability.

• Fully funded business plan with strong balance sheet.

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Dixie Brands by the Numbers

22

years in business established Companies CPG company

9 3 1


BUILDING THE LEADINGCPG PLATFORMIN CANNABIS

DIXIE BRANDS INC.CANNABIS CAPITAL CONFERENCE PRESENTATION

APRIL 17 & 18, 2019

Contact Information

[email protected]

303-945-3965

4990 Oakland St.

Denver, Colorado 80239

www.dixiebrands.com


CSE: DIXI.U | Frankfurt: 0QV | OTC:DXBRF 24

Subordinate Voting Shares– 124.8 million shares issued and outstanding

– 16.5 million options, average price C$0.66; 35.2 million warrants, average C$1.46

– Fully diluted: 176.5 million shares

– Recent trading range: US$0.50 to $1.13

LISTINGS– Canadian Securities Exchange: DIXI.U

– Frankfurt Stock Exchange: 0QV

– OTC listing: application underway

Non-participating Voting Shares– 500,000 NPV shares, 100 votes each, held by

a company controlled by senior management

CAPITALSTRUCTURE

Documents

BUILDING THE FIRST TRUE CANNABIS CPG PLATFORM...product renovation and new product development. 5 ... CA: recently relaunched, expecting >50% within 12 months ... Use of proceeds: