Xebra Brands Ltd. (CSE:XBRA) (OTCQB:XBRAF) (FSE:9YC) confirmed Thursday that it has fully satisfied all terms necessary for its acquisition of Desart MX, SA de CV, via the issuance of 48 million company shares, which were issued to five Mexican vendors and are being placed in escrow with staged releases over 38 months.
Desart has been granted an injunction by the Mexican Supreme Court giving it a 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. The Supreme Court decision is irrevocable and cannot be appealed.
Xebra highlighted that it’s working towards using the first-mover advantage; it’s in discussions to secure up to 300 hectares of suitable land for cultivation. Furthermore, several Canadian and American companies with cannabis processing and extraction expertise have expressed an interest in partnering in Mexico.
The company injunction applies specifically to the industrial cannabis sector, and explicitly to cannabis with low levels of THC (under 1%), meaning hemp cultivation and processing for the manufacture and sale of CBD and CBG products.
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Xebra shares trade 1.80% lower at 20 cents per share at the time of writing Thursday.