Xebra Provides Update on its Cannabis Authorizations in Mexico
Xebra Brands Ltd. (CSE: XBRA, OTCQB: XBRAF) has announced progress regarding cannabis authorizations in Mexico. The Mexican Health Regulatory Agency, COFEPRIS, has notified Xebra Mexico that it has complied with a Supreme Court mandate for cannabis authorizations. However, Xebra asserts that COFEPRIS has not fully met this mandate and has sought federal judicial intervention. The authorizations will mainly pertain to low-THC cannabis (under 1%) for hemp cultivation and CBD products. Delays in the authorization process are anticipated due to the lack of legal precedent in Mexico.
- COFEPRIS acknowledged compliance with the Supreme Court mandate for cannabis authorizations.
- Xebra Mexico will be authorized to cultivate low-THC cannabis, focusing on hemp and CBD products.
- Xebra believes COFEPRIS has not satisfactorily fulfilled the Supreme Court mandate.
- Expected delays in obtaining authorizations due to the unprecedented legal landscape in Mexico.
VANCOUVER, BC, Dec. 8, 2022 /PRNewswire/ - Xebra Brands Ltd. ("Xebra") (CSE: XBRA) (OTCQB: XBRAF) (FSE: 9YC), a cannabis company, provides an update on the issuance of its Mexican cannabis authorizations.
The Mexican Health Regulatory Agency (the Mexican FDA equivalent) (the "COFEPRIS"), has formally notified Xebra's Mexican subsidiary, Desart MX, SA de CV ("Xebra Mexico"), that it has complied with the Supreme Court mandate to grant Xebra Mexico cannabis authorizations, however in the opinion of Xebra and its legal advisors, the COFEPRIS has not satisfactorily fulfilled the mandate of the Supreme Court. Xebra has requested the intervention of a federal judge in a timely manner, to assure full compliance with the Supreme Court decision in favor of Xebra Mexico. Xebra Mexico's legal rights granted by the Supreme Court are irrefutable. Xebra's management and legal advisors are confident that the applicable authorizations are forthcoming, however since the cannabis authorizations are without legal precedent in Mexico, visibility on timing is not reliable and further 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.
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