Xebra's First Mover Advantage in Mexican Cannabis Movesto Next Steps; Supreme Court Final Resolution
Xebra Brands Ltd. (CSE: XBRA) has secured a significant milestone with the Supreme Court of Mexico issuing a final resolution granting an injunction to its subsidiary, Desart MX, SA de CV. This decision solidifies Xebra's first-mover advantage in the emerging Mexican cannabis market, particularly in the industrial cannabis sector, focusing on low-THC products. Following previous unanimous support from the Supreme Court, the company aims to initiate formal cannabis operations within 2022, leveraging Mexico's potential as a major cannabis consumer market and its favorable manufacturing costs compared to North America.
- Supreme Court of Mexico granted Xebra's subsidiary an irrevocable injunction for cannabis activities.
- Positioned to be a first-mover in Mexico's emerging cannabis market.
- Focus on low-THC cannabis and CBD product manufacturing could capitalize on growing demand.
- None.
VANCOUVER, BC, March 24, 2022 /PRNewswire/ - Xebra Brands Ltd. ("Xebra") (CSE: XBRA) (OTCQB: XBRAF) (FSE: 9YC), a cannabis company, announces that the Supreme Court of Mexico has issued and recorded the official final written resolution through which Xebra's wholly owned Mexican subsidiary, Desart MX, SA de CV ("Xebra Mexico"), has been granted an injunction, that furthers its outright first-mover-advantage in the Mexican cannabis market.
Xebra announced on December 2nd, 2021, that all five Supreme Court justices voted unanimously in favor of granting Xebra Mexico an irrevocable injunction. In order for Xebra Mexico to commence formal operations of cannabis activities, the next steps were for the Supreme Court to issue and record the official final written resolution, and to direct the Federal Circuit Court; these steps are now complete. The final steps are for the Federal Circuit Court to enforce the Supreme Court's final decision and to direct the Mexican Health Regulatory Agency (COFEPRIS), to grant Xebra Mexico all authorizations. Xebra is aiming to commence commercial cannabis activities this calendar year 2022.
Xebra Mexico's injunction applies specifically to the industrial cannabis sector, and explicitly 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.
More information will be provided on Xebra's Mexican plans in due-course.
ON BEHALF OF THE BOARD:
Rodrigo Gallardo
President
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, the Netherlands, or elsewhere; 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 cultivate, grow, or process hemp or cannabis in Mexico, Colombia, Canada, the Netherlands, or elsewhere and related plans; financial, operational, or any other term or statement relating to the Company's participation in the Dutch trial medicinal cannabis cultivation; 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, the Netherlands, or elsewhere; its ability to launch, commercialize or to sell Vicious Citrus Lemonade in 2022 or at any time, in any jurisdiction, and its related plans and claims; 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 and production activity 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; the impact of DTC eligibility, or lack of, on the liquidity of the shares of XEBRA and the timely receipt of regulatory approval for license applications. 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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