Mexico could be one of the best cannabis players in the world. Months after the House of Representatives decriminalized cannabis for recreational and medical use, final approval in the Mexican Senate has been suspended. However, “Mexico is clearly rationing. This will happen, most likely in 2022.” Brands of Xebra (CSE: XBRA) (OTCQB: XBRAF) Chairman Robert Justra, according to Reuters. In addition, Reuters added, “An official from MORENA, President Andres Manuel Lopez Obrador, the ruling party, told Reuters that despite the obstacles, the measure was expected to be approved in the Senate in 2022. This could make Mexico the largest market for the herb.” harmful in the world.”
Aside from Xebra Brands, this is bullish news for Aurora Hemp (NASDAQ: ACB) (TSX: ACB), canopy growth (TSX: WEED) (NASDAQ: CGC), Tilray Corporation (NASDAQ: TLRY) (TSX: TLRY), and OrganiGram Collectibles (NASDAQ: OGI) (TSX: OGI).
Xebra meets all conditions to own 100% of the Mexican subsidiary
Xebra Brands Ltd., a cannabis company, announced that it has fulfilled the terms of its 100% acquisition of Desart MX, SA de CV, by issuing 48 million Xebra common shares. The shares were issued to five Mexican sellers and are placed in escrow with phased issues over a period of 38 months (3 years and 2 months).
Desart was granted an injunction by the Mexican Supreme Court, giving it an outright initial advantage in the Mexican CBD and CBG market. Official licenses will be granted by the Mexican Health Regulatory Agency (COFEPRIS) in due course. The decision of the Supreme Court is not appealable and cannot be appealed.
Xebra is moving quickly to take advantage of the absolute first mover advantage. Discussions are underway to secure up to 300 hectares of suitable land for cultivation, and several Canadian and US companies with experience in cannabis processing and extraction have expressed interest in partnering in Mexico. Opportunities for joint industrial projects with existing Mexican parties have been identified, and distribution channels are being explored.
The Xebra Order applies specifically to the industrial cannabis sector, explicitly to cannabis that contains low levels of THC (less than 1%), and therefore, in practice, to the cultivation and processing of hemp, and to the manufacture and sale of primarily CBD and CBG products, such as Tinctures, oils, topicals, edibles, beverages, concentrates, distillates, emulsifiers, biomass, etc., and certain uses of the cannabis flower.
Xebra believes that Mexico has the potential to be one of the world’s largest near-term consumer markets for cannabis. Mexico is also within the North American Free Trade Area (USMCA), which gives it significant advantages in the cost of growing and manufacturing produce over Canada and the United States. Xebra sees that there is sufficient precedent for many agricultural crops and manufactured products, to indicate that there is a possibility that eventually the majority of industrial-scale cannabis production activity in North America will occur in Mexico.
Other relevant developments from across the markets include:
Aurora Hemp Announced Delivery of a shipment of cannabis Worth about C$10 million – the company’s largest ever shipment to Israel, and what is believed to be the largest export of medical cannabis to the Israeli market. The shipment will be delivered in December, and will be recognized as revenue in the Q22 financial period from Aurora. The sale builds on the company’s growing presence in Israel, a key market where Aurora continues to strengthen its international medical business. As the leading Canadian licensed producer (LP) in global medicinal cannabis by revenue, Aurora has strategically focused on international expansion to enhance its diversified business portfolio. The company also recently entered into a joint venture in the Netherlands to participate in a controlled trial of the cannabis supply chain, a pilot program used for adults.
canopy growth entered in Agreement to liquidate its subsidiary business, C³ Cannabinoid Compound Company GmbH, to Dermapharm Holding SE, a European pharmaceutical company headquartered in Grünwald, Germany. C³ develops and manufactures pharmaceutical products and consists of Spectrum Therapeutics GmbH, headquartered in Neumarkt-in-der-Oberpfalz, Germany, THC Pharm GmbH The Health Concept, headquartered in Frankfurt, Germany, and Spectrum Therapeutics Austria GmbH, headquartered in Vienna, Austria.
Tilray Corporation, is a global leader in the cannabis industry and consumer packaged goods that inspire and empower society around the world to live their best lives, Reported financial results For the second fiscal quarter ending November 30, 2021. All financial information in this press release is in US dollars, unless otherwise noted. The company also announced a new mother name, Tilray Brands, Inc. , reflecting the company’s evolution from a Canadian LP into a global packaged goods company with a market-leading portfolio of cannabis and CPG lifestyle brands. Erwin de Simon, Chairman and CEO of Tilray, said: “Our second-quarter performance reflects significant success in building high-quality, much-needed cannabis and lifestyle CPG brands that, combined with our scale, operational excellence and broad global distribution, have enabled us to increase sales and maintain profitability. Despite the headwinds for a specific sector and the overall economy.”
OrganiGram Collectibles, a leading licensed producer of cannabis, announced its results for the first quarter ending on November 30, 2021. “Our record-breaking results in the first quarter of fiscal 2022 are testament to our successful strategy to create innovative, high-quality products aligned with the evolving preferences of different segments of cannabis consumers,” said Bena Goldenberg. “Our positive outlook for 2022 is reinforced by the addition of Laurentian’s premium products to our portfolio, with an increased presence in Quebec and the resumption of international sales, which will continue through the year.”