Xebra Brands Announces Warrant Extension

Rhea-AI Summary

Xebra Brands (CSE:XBRA)(OTCQB:XBRAF)(FSE:9YC0), a cannabis company, has announced the extension of the expiry date for 13,311,731 outstanding warrants. These 2023 Warrants, originally issued on March 6, 2023, with an initial exercise price of CAD$0.10, were set to expire on September 6, 2024. The company has proposed to extend the expiration date to December 31, 2024. All other terms and conditions of the warrants remain unchanged.

Interim-CEO Rodrigo Gallardo stated that this extension will provide time for close shareholders who have expressed interest in exercising warrants, potentially providing necessary capital for the company to grow and execute its first-mover advantage in Mexico. The Canadian Securities Exchange (CSE) has approved the warrant extension.

Positive

• Potential for additional capital inflow through warrant exercise
• CSE approval for warrant extension
• Opportunity to capitalize on first-mover advantage in Mexico

Negative

• Delay in potential dilution from warrant exercise
• Possible indication of difficulty in raising capital through other means

VANCOUVER, BC / ACCESSWIRE / September 12, 2024 / Xebra Brands Ltd. ("Xebra" or the "Company") (CSE:XBRA)(OTCQB:XBRAF)(FSE:9YC0), a cannabis company, is pleased to announce the extension of the expiry date of an aggregate of 13,311,731 outstanding warrants (the "2023 Warrants"). The 2023 Warrants were issued as a result of the unit financing issued by the Company on March 6, 2023.

The initial exercise price of the 2023 Warrants is CAD$0.10. The 2023 Warrants have an original expiration date of September 6, 2024. The Company proposed to extend the expiration date of the 2023 Warrants to expire on December 31, 2024. All other terms and conditions of the 2023 Warrants will remain unchanged.

"We are pleased that our close shareholders have expressed interest to exercise warrants and this extension will give us that time. These warrants will provide the necessary capital to continue to grow and execute our first mover advantage in Mexico," said Rodrigo Gallardo Interim-CEO.

The Canadian Securities Exchange (the "CSE") has approved the extension of the 2023 Warrants.

ON BEHALF OF THE BOARD:

Rodrigo Gallardo
Interim CEO

For more information contact:
ir@xebrabrands.com

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 enter into and execute partnerships or joint venture opportunities on acceptable terms; statements regarding expected benefits of partnerships and supply agreements, 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); its ability to satisfy the conditions of authorizations granted by COFEPRIS; its ability to successfully apply for, obtain and retain 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; 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 MD&A of the Company for the period ended November 30, 2023. 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 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 accesswire.com

FAQ

What is the new expiry date for Xebra Brands' 2023 Warrants?

Xebra Brands has proposed to extend the expiry date of the 2023 Warrants from September 6, 2024, to December 31, 2024.

How many warrants are affected by Xebra Brands' extension announcement?

The warrant extension affects an aggregate of 13,311,731 outstanding warrants issued by Xebra Brands on March 6, 2023.

What is the exercise price of Xebra Brands' 2023 Warrants (XBRAF)?

The initial exercise price of Xebra Brands' 2023 Warrants is CAD$0.10.

Has the Canadian Securities Exchange (CSE) approved Xebra Brands' warrant extension?

Yes, the Canadian Securities Exchange (CSE) has approved the extension of Xebra Brands' 2023 Warrants.