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Xebra Furthers First-mover Advantage in Mexican Cannabis Market

Xebra Brands Ltd. has achieved another vital milestone on its path to being the outright first-mover in the Mexican cannabis market.

Xebra announced on December 2, 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.

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“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!”

Related: Mexican Supreme Court May Allow Cannabis Cultivation Regardless of Legalization

Xebra Mexico’s injunction applies specifically to cannabis with low levels of THC (under 1%), therefore, in practical terms, to hemp cultivation and processing, and to the manufacture and sale of mainly CBD products, such as tinctures, oils, topicals, edibles, beverages, concentrates, distillates, emulsions, and biomass, etc., and certain uses of the cannabis flower. Opportunities in the hemp plastics industry have also been identified.

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.

For more information:
Xebra Brands

Xebra Furthers First-mover Advantage in Mexican Cannabis Market

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