Xebra Brands Ltd., a cannabis company, announced that the Mexican Health Regulatory Agency (the Mexican FDA) (the “COFEPRIS”), has been directed by the court authorities to grant Xebra’s wholly owned Mexican subsidiary, Desart MX, SA de CV (“Xebra Mexico”), all applicable cannabis authorizations, pursuant to the irrevocable injunction granted by the Supreme Court in December 2021.
Under pertinent laws, COFEPRIS officials face criminal prosecution if they do not issue the authorizations within three (3) business days, however Xebra expects the process to take marginally longer, as it coordinates with the COFEPRIS to ensure that the terms and conditions of the authorizations are to Xebra’s satisfaction. Notwithstanding the extra time to engage with the COFEPRIS, Xebra fully expects the authorizations to be granted no later than October.
“Xebra is only days away to being the outright first mover in the Mexican CBD market, said Jay Garnett, CEO of Xebra. “Mexico has the potential to be one of the largest CBD consumer markets in the world, and for the foreseeable future, only Xebra will have the legal authorizations to fully commercialize that demand vertically from field to manufacturing and sales.”
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 industries have also been identified.
More information will be provided on Xebra’s Mexican plans in due course.