Xebra gets additional time to get legal authorizations

The Mexican Health Regulatory Agency COFEPRIS has been directed by the court authorities to grant Xebra Brands Ltd. XBRAF XBRAF XBRA FSE: 9 YC wholly owned Mexican subsidiary, Desart MX, SA de CV, all applicable cannabis authorizations, pursuant to the irrevocable injunction granted by the Supreme Court in December 2021.

Xebra expects the process to take a little longer, as COFEPRIS officials do not get the authorizations within three business days, as it coordinates with the COFEPRIS to make sure that the terms and conditions of the authorizations are to Xebra's satisfaction. Xebra fully expects the authorizations to be granted no later than October, despite the extra time to engage with the COFEPRIS.

Jay Garnett, CEO of Xebra, said that Xebra is only days away from being the first mover in the Mexican CBD market. Mexico has the potential to be one of the largest consumer markets in the world, and only Xebra will have the legal authorizations to commercialize that demand vertically from the field to manufacturing and sales. Xebra Mexico has injunction on cannabis with low levels of THC under 1%, and in practical terms to hemp cultivation and processing, and the manufacture and sale of mainly CBD products, such as tinctures, oils, topicals, edibles, beverages, concentrates, distillates, emulsions, and biomass. There are certain uses for the cannabis flower. Opportunities in the hemp plastics industries have also been identified.