District Court Orders Mexican FDA to Grant Cannabis Authorizations to Xebra
Xebra Brands Ltd. (CSE: XBRA, OTCQB: XBRAF) announces a favorable ruling from a District Court regarding cannabis authorizations in Mexico. The court dismissed a resolution by COFEPRIS, the Mexican health regulatory agency, as insufficient. It ordered COFEPRIS to issue full authorizations within three business days, although delays are anticipated due to holiday closures. The authorizations will apply to low-THC cannabis, focusing on hemp cultivation and CBD products, with potential opportunities in hemp plastics.
- District Court ruled in favor of Xebra Mexico, enhancing legal standing.
- COFEPRIS is mandated to issue full cannabis authorizations within three business days.
- Authorization focuses on low-THC cannabis, allowing entry into the CBD market and potential hemp plastics industry.
- Anticipated delays in authorization process due to holiday office closures.
- Guidance on timing for authorizations remains uncertain.
VANCOUVER, BC, Dec. 20, 2022 /PRNewswire/ - Xebra Brands Ltd. ("Xebra") (CSE: XBRA) (OTCQB: XBRAF) (FSE: 9YC), a cannabis company, is pleased to announce, that further to its press release of December 8, 2022, a District Court judge has ruled in favor of Xebra Mexico.
On December 8, 2022, Xebra announced that the Mexican Health Regulatory Agency (the Mexican FDA equivalent) (the "COFEPRIS"), had formally notified Xebra's Mexican subsidiary, Desart MX, SA de CV ("Xebra Mexico"), with a resolution in which it claimed to have complied with the Supreme Court mandate to grant Xebra cannabis authorizations. Xebra however indicated that in its opinion, and in the opinion of its legal advisors, the resolution issued by the COFEPRIS did not fulfill the mandate of the Supreme Court.
A District Court judge has now reviewed the COFEPRIS resolution and ruled in favor of Xebra Mexico, outright rejecting its scope and language as materially insufficient and upholding Xebra's irrefutable legal rights granted by the Supreme Court. Thus, the judge ordered the COFEPRIS to issue the full and proper authorizations within 3 business days.
Due to many Mexican government offices closing during the holiday season, Xebra anticipates the process of issuing the authorizations to continue into January 2023. Furthermore, since these cannabis authorizations are without legal precedent in Mexico, guidance on approximate timing cannot be relied upon, and additional delays can be reasonably expected.
Xebra Mexico's authorizations will apply specifically to cannabis with low-levels of THC (under
Jay Garnett
CEO
Certain information contained in this press release constitutes forward-looking statements under applicable securities laws. Any statements that are not statements of historical fact may be deemed to be forward-looking statements, these include, without limitation, statements regarding Xebra Brands Ltd.'s expectations in respect of its ability to successfully execute its business plan or business model; its ability to provide economic, environmental, social, or any benefits of any type, in the communities it operates in or may operate it in the future; its ability to be a first mover in a country, or to obtain or retain government licenses, permits or authorizations in general, or specifically in Mexico, Canada, or elsewhere, including cannabis authorizations from the Mexican Health Regulatory Agency (COFEPRIS) and the timing of such permits or authorizations; its ability to successfully apply for and obtain trademarks and other intellectual property in any jurisdiction; its ability to be cost competitive; its ability to commercialize, cultivate, grow, or process hemp or cannabis in Mexico, Canada, or elsewhere and related plans and timing; its ability to manufacture, commercialize or sell cannabis-infused beverages, wellness products, or other products in Mexico, Canada, or elsewhere, and its related plans and claims, including market interest and availability; its ability to create wellness products that have a therapeutic effect or benefit; plans for future growth and the direction of the business; financial projections including expected revenues, gross profits, and EBITDA (which is a non-GAAP financial measure); plans to increase product volumes, the capacity of existing facilities, supplies from third party growers and contractors; expected growth of the cannabis industry generally; management's expectations, beliefs and assumptions in general, including manufacturing costs, production activity and market potential in Mexico or any jurisdiction; events or developments that XEBRA expects to take place in the future; general economic conditions; and other risk factors described in the prospectus of the Company dated September 30, 2021. All statements, other than statements of historical facts, are forward-looking information and statements. The words "aim", "believe", "expect", "anticipate", "contemplate", "target", "intends", "continue", "plans", "budget", "estimate", "may", "will", and similar expressions identify forward-looking information and statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by XEBRA as of the dates of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to, the inability of XEBRA 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 a potential acquisition 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; and the continued growth in global demand for cannabis products and the continued increase in jurisdictions legalizing cannabis; and the timely receipt of regulatory approval for license applications. 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.
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SOURCE Xebra Brands Ltd.
FAQ
What did the District Court rule for Xebra Brands Ltd. on December 20, 2022?
What type of cannabis authorizations is Xebra seeking?
What impact does the District Court ruling have on Xebra's operations in Mexico?
When can Xebra expect to receive cannabis authorizations from COFEPRIS?
What potential opportunities does Xebra see in the hemp industry?
