Xebra Brands Ltd. (XBRA: CSE) (XBRAF: OTCQB) (9YC: FSE)’s Mexican subsidiary has been granted a permit from a federal agency to cultivate, process and commercialize cannabis under 1 per cent of THC.
Xebra announced on Friday that the Federal Commission for Protection against Sanitary Risk (COFEPRIS) granted its subsidiary Desart MX, SA de CV the first industrial-level permit to commercialize cannabis. The COFEPRIS has similar functions to those of the United States Food and Drug Administration (FDA) and new commercialized drugs and products have to receive authorization from it before hitting the shelves.
On Dec. 2, 2021, Xebra Mexico got permission from all five Supreme Court justices to sell cannabis products. The company has now received formal authorizations from COFEPRIS, which include safety protocols and inspection provisions. However, Xebra must meet industry standards to keep the authorizations.
There are no restrictions on where or how much cannabis Xebra can grow, process or manufacture. The authorizations are only for low-THC cannabis products at first. In 2021, Xebra was the first company to be authorized by the Mexican Supreme Court to commercialize hemp in Mexico after its application for an injunction was approved.
The Mexican FDA, COFEPRIS officially issues corporate cannabis authorizations, among other approvals.
— Xebra Brands (@XebraBrands) March 9, 2023
Xebra anticipates developing a fruitful and collaborative partnership with COFEPRIS while following their guidance and adhering to the regulations, rules, authorizations, and conditions established for the cannabis market in Mexico.
The company said it will meticulously evaluate all prospects for expansion and partnership that have arisen since starting the authorization application process on late November 2018.
Xebra recognizes the historical importance and commercial prospects of being the inaugural enterprise to receive these authorizations from the Mexican Government.
“This represents an important moment for cannabis globally with the first-ever grant for full cultivation, harvesting, processing and commercial activities to a corporate entity in Mexico,” said Jay Garnett, CEO of Xebra Brands.
“This grant follows years of hard work and focus by a devoted team and is only the beginning of what Xebra has laid as the foundation for growth. The path is now clear for Xebra to continue forward to unlock the commercial opportunities that exist.”
“We are excited to start the process of engaging with potential partners and stakeholders through various commercial joint ventures/partnerships,” Garnett added.
Xebra stock went up by 1.85 per cent on Friday to $0.28 on the Canadian Securities Exchange.