BSK Holdings Inc and Xebra Expand Partnership to Launch Elements Products in the United States

Rhea-AI Summary

Xebra Brands (CSE:XBRA)(OTCQB:XBRAF) and BSK Holdings Inc. have expanded their partnership to launch Elements CBD products in the United States market. BSK will leverage its proven track record in building CBD brands that generated over $100M in revenue over the past 5 years.

The expansion targets the U.S. CBD market, which exceeded $5 billion in 2024 and is projected to grow at a 15% CAGR through 2030. BSK will assist Xebra with:

• Product development and SKU selection
• Manufacturing and distribution partnerships
• Market entry strategy
• E-commerce direct-to-consumer website development

BSK plans to position Elements in both wellness and active lifestyle verticals, leveraging their established network, digital marketing expertise, and subscription-based sales infrastructure. This expansion complements Xebra's existing leadership in the Mexican cannabis market, where they hold exclusive commercialization rights for cannabis (-1% THC).

Positive

• Partnership with proven operator BSK Holdings that generated $100M+ in CBD brand revenue
• Entry into $5B U.S. CBD market with 15% projected CAGR through 2030
• Access to established distribution network and digital marketing infrastructure
• Leveraging BSK's successful direct-to-consumer and subscription-based sales model

Negative

• Entering highly competitive U.S. CBD market as a new player
• Significant marketing and infrastructure investments needed for market entry
• Revenue impact and market penetration timeline uncertain

VANCOUVER, BC / ACCESS Newswire / March 26, 2025 / Xebra Brands Ltd. ("Xebra" or the "Company") (CSE:XBRA)(OTCQB:XBRAF)(FSE:9YC0), a pioneer in the Mexican cannabis market and exclusive holder of cannabis (-1% THC) commercialization rights in Mexico, is and BSK Holdings Inc. ("BSK"), are pleased to announce the expansion of the partnership to include the launch of Elements branded CBD products in the United States.

The move into the U.S. market represents a significant next step for the Elements brand, and an expansion into the largest hemp and CBD market in the world. BSK has a proven track record of building and scaling brands in the U.S. market which will allow Xebra to tap into an established network and infrastructure. BSK's proven online sales ecosystem, supported by an in-house team of digital marketers, operations specialists, fulfillment partners, manufacturing capabilities, and executives who have built some of the most successful CBD brands in the space and created over $100M in revenue across their brands over the last 5 years.

BSK's brands reach millions of consumers every year along with a strong track record in direct-to-consumer marketing, subscription-based sales, and national retail partnerships. Xebra aims to leverage this expertise, to develop a list of initial SKUs and products to launch into key regional markets where consumer interest in premium wellness CBD products continues to see strong demand. Over the coming fiscal quarter, BSKwill work with Xebra to identify key products, secure manufacturing and distribution partners, develop a market entry and launch plan, marketing strategy, US payment and banking partners, and assist Xebra to develop an E-commerce direct-to-consumer website for the Elements brand.

The U.S. CBD market remains one of the largest and most mature globally, with revenue exceeding USD $5 billion in 2024, and projected to grow at a CAGR of 15% through 2030. BSK plans to position Elements in both wellness and active lifestyle verticals, tapping into existing consumer segments familiar with CBD as part of their daily routines.

This move also signals continued alignment between Xebra and BSK as they work together to maximize the reach of the Elements brand across North America. While Xebra remains focused on leading the CBD market in Mexico, diversifying into the U.S, complements a broader vision to establish Elements as a trusted North-American CBD brand.

"We're incredibly encouraged by BSK's commitment to the Elements brand and their roadmap to scale it across the U.S.," commented Rodrigo Gallardo, Interim CEO of Xebra Brands. "This step represents continued momentum and validates our belief that Elements can compete and succeed in top-tier CBD markets."

About Xebra Brands
Xebra Brands is a leading cannabis company dedicated to providing high-quality, innovative products to consumers worldwide. Xebra is a pioneer in the Mexican cannabis sector and the only company legally allowed to cultivate, manufacture, operate, and sell cannabis (-1% THC) in Mexico.

About BSK Holdings Inc.
BSK is a leading CBD company known for its top-selling Keoni and AMMA branded products in the U.S. market. With decades of industry experience and a proven track record of success, BSK is dedicated to providing high-quality CBD products through innovative e-commerce strategies.

ON BEHALF OF THE BOARD
Rodrigo Gallardo
Interim CEO

For more information, contact:
1 (888) XEBRA 88
ir@xebrabrands.com

Cautionary Note Regarding Forward-Looking Statements:

This news release contains certain "forward-looking information" and "forward-looking statements", as such terms are defined under applicable securities laws (collectively, "forward-looking statements"). Forward-looking statements can be identified by the use of words and phrases such as "plans", "expects" ,"is expected", "budget", "scheduled," "estimates", "forecasts", "intends", "anticipates" or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements herein include, but are not limited to, statements with respect Strategy 2025 and the Company's growth strategy into the CBD market, the roadmap to accelerate growth in the North American CBD market, the Company's expected growth pillars of Cultivation, Manufacturing and Retail and the planned business activities under each such pillar, that the Company is actively seeking to amend current provisions under the Company's Mexican cultivation licences that limit cultivation scale, the aim to collaborate with major agricultural institutions in Mexico for large-scale, low-cost outdoor cannabis cultivation, expectations with respect to the Company's legal proceedings in Mexico, including the results and timing thereof, the expectation that Chapingo University will initiate pilot projects once confined site approval is granted, the anticipation for the importation process the two CBD products, which were manufactured in partnership with Restorative Botanicals, to be completed by April 2025 and the expectation for launch shortly thereafter, the Company's plans for e-commerce partnerships with Amazon Mexico and Mercado Libre is Mexico and the intention to leveraging expertise from a major U.S. e-commerce partner for market expansion and that the Company is seeking partnerships with CBD brands and that such partnerships may expedite the Company's path to self-sustainability.

These forward-looking statements are based on current expectations and are subject to known and unknown risks, uncertainties and other factors, many of which are beyond Xebra's ability to predict or control and could cause actual results to differ materially from those contained in the forward-looking statements. Specific reference is made to Xebra's most recent annual management discussion and analysis on file with certain Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements, which include, without limitation, the inability of Xebra to retain the authorizations granted by COFEPRIS, the inability to successfully complete financings on terms acceptable to Xebra or at all, the inability to generate sufficient revenues or to raise sufficient funds to carry out its business plan; changes in government legislation, taxation, controls, regulations and political or economic developments in various countries; risks associated with agriculture and cultivation activities generally, including inclement weather, access to supply of seeds, poor crop yields, and spoilage; compliance with import and export laws of various countries; significant fluctuations in cannabis prices and transportation costs; the risk of obtaining necessary licenses and permits; inability to identify, negotiate and complete potential acquisitions, dispositions or joint ventures for any reason; the ability to retain key employees; dependence on third parties for services and supplies; non-performance by contractual counter-parties; general economic conditions; the continued growth in global demand for cannabis products and the continued increase in jurisdictions legalizing cannabis; and the timely receipt of regulatory approvals for license applications on terms satisfactory to Xebra. In addition, there is no assurance Xebra will: be a low-cost producer or exporter; obtain a dominant market position in any jurisdiction; have products that will be unique. The foregoing list is not exhaustive and Xebra undertakes no obligation to update or revise any of the foregoing except as required by law. Many of these uncertainties and contingencies could affect Xebra's actual performance and cause its actual performance to differ materially from what has been expressed or implied in any forward-looking statements made by, or on behalf of, Xebra. Readers are cautioned that forward-looking statements are not guarantees of future performance and readers should not place undue reliance on such forward-looking statements. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those set out in such statements.

SOURCE: Xebra Brands Ltd

View the original press release on ACCESS Newswire

FAQ

What is the projected growth rate of the U.S. CBD market where XBRAF is expanding?

The U.S. CBD market is projected to grow at a CAGR of 15% through 2030, with current revenue exceeding $5 billion in 2024.

How much revenue has BSK Holdings generated from their CBD brands?

BSK Holdings has generated over $100M in revenue across their CBD brands over the last 5 years.

What services will BSK provide for XBRAF's Elements brand launch in the US?

BSK will provide product development, manufacturing partnerships, distribution, market entry planning, marketing strategy, payment solutions, and e-commerce website development.

Which market segments will XBRAF's Elements brand target in the US?

Elements brand will target both wellness and active lifestyle vertical segments, focusing on consumers who use CBD as part of their daily routines.