VANCOUVER, BC, Oct. 15, 2021 /PRNewswire/ - Xebra Brands Ltd. ("Xebra"), a cannabis company, is pleased to announce that it has received final approval to list its common shares on the Canadian Securities Exchange.
Xebra's 125,619,492 issued and outstanding common shares will commence trading at market open on Monday, October 18, 2021 under the ticker symbol "XBRA".
Xebra is a cannabis company, with global brands and intellectual property. Xebra's global brands include beverages, wellness and leisure. Cultivation is focused in low-cost countries, and in jurisdictions where Xebra can achieve an early mover status. Xebra is well positioned in Mexico within the USMCA Free Trade Zone (formerly NAFTA), and is 1 of 5 companies whereby two will be selected by the government of the Netherlands to participate in cultivation trials, to supply all medicinal cannabis sold through Dutch pharmacies, under guaranteed government contracts.
More on Xebra
Upon legalization of cannabis, Mexico will become the largest cannabis consumer market in the world by country (until such time as the U.S. federally legalizes). However, as part of the USMCA Free Trade Zone, Mexico is poised to become the principal industrial-scale cannabis producer and supplier in North America.
Xebra's strategy is to be the absolute first mover in cannabis in Mexico, in advance of formal legalization, by obtaining a Supreme Court injunction to legally commercialize hemp derived cannabinoids such as CBD and CBG.
Xebra's claim was filed in January 2019, and the injunction filed includes the right for the importation of seeds, cultivation anywhere in Mexico without limitation on size, harvesting, processing, the creation of cannabis products with less than 1% THC, and the right to sell those products domestically or by export.
A Supreme Court vote on Xebra's claim for an injunction is expected to occur in due-course.
More on Xebra in Mexico
On July 2, 2021, Xebra received a preliminary cannabis license from the Dutch Ministry of Health, which provides for the possession, cultivation, processing, and transportation of cannabis.
As 1 of only 5 companies to be selected by the Dutch government to participate in trial medicinal cannabis cultivation, Xebra is endeavoring to be awarded 1 of 2 licenses, with a contract for up to 6 years, providing for revenues of up to €70.5 million, to co-supply all pharma-grade cannabis to be sold in Holland; and additional crops can be grown for export to other European countries. Not including export crops, the contract would provide for annual volumes of 5,000 kg of cannabis flower, to be sold at a fixed price of €2,350/kg under an initial four-year term, with an optional two-year extension, for each of the two successful companies, and would be guaranteed by the Dutch government. The final two license holders will be selected based on the strength of their business plans, and on the product quality and consistency of three trial crops.
Xebra has assembled an experienced team in Holland, led by Harry von Duijne, formerly of Bedrocan®, where he was responsible for managing every aspect of operations of a state-of-the-art cannabis facility, from construction through cultivation and processing, quality management, and GMP certification; Bedrocan® presently is, and has been the only licensed producer in Holland for more than a decade.
Construction of Xebra's cannabis cultivation facility in Holland is near completion and the ideal cannabis seed strains have been secured. Planting of the first trial crop is expected to commence in December 2021, which will be harvested and submitted to the Dutch government in March 2022.
More on Xebra in the Netherlands
Xebra has developed approximately 40 cannabis infused formulations and six distinct beverage brands, each protected by trademark IP.
Xebra has entered into an agreement with BevCanna Enterprises Inc., to launch Xebra's Vicious Citrus THC lemonade into the Canadian market. Under the agreement, BevCanna will manufacture and distribute Xebra's cannabis-infused beverages, with plans to launch Vicious Citrous in the Spring of 2022, with an initial focus in three provinces, Ontario, British Columbia and Alberta.
Xebra has also entered into an agreement to license Solutech™, a clinically-backed delivery technology for cannabinoids. Solutech™ is one of the fastest-acting, most bioavailable and comprehensively studied delivery systems for cannabinoids, including THC and CBD, uniquely differentiated for relative oral bioavailability and absorption by a Phase I human clinical trial. Consideration for licensing Solutech is fully satisfied and completed, and this license is exclusive in Mexico and Colombia, and non-exclusive in Europe and the rest of the Americas, including Canada, but limited to only California in the United States.
More on Xebra and Beverages
Xebra holds all relevant cannabis licenses in Colombia. Final agronomic evaluations to complete the registration of the initial 10 of Xebra's 144 cultivars (i.e. seed genetics), commenced in June, and are expected to be completed by year-end.
Xebra's unique and intended business model, mitigates risk by partnering with licensed small cultivators, rather than incurring costly land ownership and leases. Upon completion of agronomic evaluations, Xebra and its partners can apply for a quota, in order to begin commercial activities, currently planned for 2022.
More on Xebra in Colombia
Upon listing, Xebra will have 125,619,492 common shares issued and outstanding, of which approximately 14.71% of the common shares will be held by Xebra's directors, officers and consultants.
In addition, upon listing, a total of 110,799,909 common shares, which were issued pursuant to the private placements completed by Xebra in the past, will be subject to contractual escrow and pooling restrictions on resale as described in the prospectus of Xebra dated September 30, 2021. The DRS statements that are being delivered to shareholders by Computershare the transfer agent will indicate the applicable restrictions. We strongly encourage shareholders to review the applicable restrictions on their DRS statements prior to engaging in any sales.
Certain information contained in this press release constitutes forward-looking statements under applicable securities laws. Any statements that are not statements of historical fact may be deemed to be forward-looking statements, these include, without limitation, statements regarding Xebra Brands Ltd.'s expectations in respect of its ability to successfully execute its business plan or business model; its ability to provide economic, environmental, social, or any benefits of any type, in the communities it operates in or may operate it in the future; its ability to be a first mover in a country, or to obtain or retain government licenses, permits or authorizations in general, or specifically in Mexico, Colombia, Canada, the Netherlands, or elsewhere; its ability to raise capital and fund its ongoing operations; its ability to list its shares on a stock exchange or attain a public listing, its ability to successfully apply for and obtain trademarks and other intellectual property in any jurisdiction; its ability to be cost competitive; its ability to cultivate, grow, or process hemp or cannabis in Mexico, Colombia, Canada, the Netherlands, or elsewhere; its ability to manufacture cannabis beverages, wellness products, or other products; its ability to commercialize or sell cannabis beverages, wellness products, or other products, in Mexico, Colombia, Canada, the Netherlands, or elsewhere; its ability to commercialize or to sell Vicious Citrus Lemonade in 2021 or at any time, in any jurisdiction; its ability to commercialize or to sell Elements wellness products in Mexico, in Colombia, or in any jurisdiction in 2021 or at any time; its ability to make cannabis beverages that taste good; its ability to create wellness products that have a therapeutic effect or benefit; plans for future growth and the direction of the business; financial projections including expected revenues, gross profits, and EBITDA (which is a non-GAAP financial measure); plans to increase product volumes, the capacity of existing facilities, supplies from third party growers and contractors; expected growth of the cannabis industry generally; management's expectations, beliefs and assumptions; events or developments that XEBRA expects to take place in the future; general economic conditions; and other risk factors described in the prospectus of the Company dated September 30, 2021.. All statements, other than statements of historical facts, are forward-looking information and statements. The words "aim", "believe", "expect", "anticipate", "contemplate", "target", "intends", "continue", "plans", "budget", "estimate", "may", "will", and similar expressions identify forward-looking information and statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by XEBRA as of the dates of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to, the inability of XEBRA to generate sufficient revenues or to raise sufficient funds to carry out its business plan; the inability of Xebra to list its shares for trading on a stock exchange; changes in government legislation, taxation, controls, regulations and political or economic developments in various countries; risks associated with agriculture and cultivation activities generally, including inclement weather, access to supply of seeds, poor crop yields, and spoilage; compliance with import and export laws of various countries; significant fluctuations in cannabis prices and transportation costs; the risk of obtaining necessary licenses and permits; inability to identify, negotiate and complete a potential acquisition for any reason; the ability to retain key employees; dependence on third parties for services and supplies; non-performance by contractual counter-parties; general economic conditions; and the continued growth in global demand for cannabis products and the continued increase in jurisdictions legalizing cannabis; and the timely receipt of regulatory approval for license applications. The foregoing list is not exhaustive and XEBRA undertakes no obligation to update or revise any of the foregoing except as required by law. Many of these uncertainties and contingencies could affect XEBRA's actual performance and cause its actual performance to differ materially from what has been expressed or implied in any forward-looking statements made by, or on behalf of, XEBRA. Readers are cautioned that forward-looking statements are not guarantees of future performance and readers should not place undue reliance on such forward-looking statements. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those set out in such statements.
View original content to download multimedia:
SOURCE Xebra Brands Ltd.