- Xebra Brands’ (XBRA) Mexican subsidiary, Desart MX, SA de CV has been granted an injunction by the Mexican Supreme Court
- The injunction provides Xebra with an outright first-mover-advantage in the Mexican CBD and CBG market
- Xebra believes its first-mover advantage in the Mexican CBD and CBG market could last 1 to 3 years
- Discussions are underway to secure up to 300 hectares of suitable land for cultivation
- Several companies with cannabis processing and extraction expertise are interested in partnering with Xebra in Mexico
- Xebra Brands Ltd. is an international cannabis cultivation and product company
- Xebra Brands Ltd. (XBRA) is trading at C$0.37 per share
Xebra Brands’ (XBRA) subsidiary, Desart MX, SA de CV has been granted an injunction providing it with first-mover-advantage in the Mexican CBD and CBG market.
Official licenses will be granted by the Mexican Health Regulatory Agency (COFEPRIS) in due course.
Xebra believes its first-mover advantage in the Mexican CBD and CBG market could last 1 to 3 years.
Xebra Brands Chairman Robert Giustra sat down with Caroline Egan to discuss the company’s next steps.
Xebra says it is moving quickly to take advantage of its absolute first-mover advantage. Discussions are underway to secure up to 300 hectares of suitable land for cultivation, and multiple Canadian and American companies with cannabis processing and extraction expertise have expressed an interest in partnering in Mexico. Manufacturing joint-venture opportunities with established Mexican parties have been identified, and distribution channels are being explored.
Xebra Mexico’s injunction applies specifically to the industrial cannabis sector, and explicitly to hemp cultivation and processing, and the manufacture and sale of mainly CBD and CBG products, such as tinctures, oils, topicals, edibles, beverages, concentrates, distillates, emulsions, and biomass etc., and certain uses of the cannabis flower.
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), giving it 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 Brands is an international cannabis cultivation and product company.
Xebra Brands Ltd. (XBRA) is trading at C$0.37 per share.
