Xebra Completes Last Legal Requirement to Receive Mexican Cannabis Authorizations
Xebra Brands Ltd. (OTCQB: XBRAF) has reached a significant milestone in its bid to become a leader in the Mexican cannabis market. Following a unanimous Supreme Court ruling on December 2, 2021, Xebra Mexico has received an irrevocable cannabis injunction, allowing it to cultivate hemp and manufacture CBD products. The Federal Circuit Court has reinforced this decision, paving the way for Xebra to proceed with its commercial activities. The company anticipates receiving necessary health authorizations soon, aiming to capitalize on Mexico's potential as a major cannabis consumer market.
- Received irrevocable cannabis injunction allowing hemp cultivation and CBD product manufacturing.
- No more legal hurdles to commercial cannabis activities in Mexico.
- Positioned to tap into one of the largest near-term cannabis markets globally.
- None.
VANCOUVER, BC, Aug. 30, 2022 /PRNewswire/ - Xebra Brands Ltd. ("Xebra") (CSE: XBRA) (OTCQB: XBRAF) (FSE: 9YC), a cannabis company, has achieved another vital milestone on its path to being the outright first-mover in the Mexican cannabis market.
Xebra announced on December 2nd, 2021, that all five Supreme Court justices voted unanimously in favor of granting Xebra's wholly owned Mexican subsidiary, Desart MX, SA de CV ("Xebra Mexico"), an irrevocable cannabis injunction. On March 24, 2022, Xebra announced that the Supreme Court issued and recorded the official final written resolution and directed the Federal Circuit Court to enforce its decision. Xebra is pleased to announce that the Federal Circuit Court has now enforced the Supreme Court decision, by also recording a written resolution, and by issuing a further irrevocable injunction in favor of Xebra Mexico.
"We are thrilled that there are no more legal hurdles to overcome, said Jay Garnett, CEO of Xebra. "The final step in the process is for the Mexican Health Regulatory Agency (COFEPRIS) to grant Xebra Mexico all cannabis authorizations per our Amparo, and we expect that to happen soon!"
Xebra Mexico's injunction applies specifically to cannabis with low-levels of THC (under
Xebra believes Mexico has the potential to be one of the largest near-term country cannabis consumer markets in the world. Mexico is also within the North American free trade zone (USMCA), allowing it to benefit from its considerable cultivation and product manufacturing cost advantages over Canada and the United States. Xebra is of the opinion that there is sufficient precedent with many agricultural crops and manufactured products, to suggest that there is a possibility that ultimately the majority of North American industrial scale cannabis production activity will occur in Mexico.
Xebra is aiming to commence commercial cannabis activities in Mexico this calendar year 2022. More information will be provided on Xebra's Mexican plans in due course.
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, Colombia, Canada, or elsewhere, including cannabis authorizations from the Mexican Health Regulatory Agency (COFEPRIS); 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, Colombia, Canada, or elsewhere and related plans and timing; its ability to manufacture cannabis beverages, wellness products, or other products; its ability to commercialize or sell cannabis beverages, wellness products, or other products, in Mexico, Colombia, Canada, or elsewhere; its ability to launch, commercialize or to sell Vicious Citrus Lemonade or any additional cannabis infused beverage brands or products, at any time, in any jurisdiction, and its related plans and claims, including market interest and availability; its ability to commercialize or to sell Elements wellness products in any jurisdiction at any time; 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; launch other Vicious Citrus SKUs; or monetize any asset sales from its Colombian and Dutch subsidiaries. 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.
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