Xebra Brands Ltd. ("Xebra") (CSE: XBRA) (OTCQB: XBRAF) (FSE: 9YC), a cannabis company, announces that the Supreme Court of Mexico has issued and recorded the official final written resolution through which Xebra's wholly owned Mexican subsidiary, Desart MX, SA de CV ("Xebra Mexico"), has been granted an injunction, that furthers its outright first-mover-advantage in the Mexican cannabis market.

Xebra announced on December 2nd, 2021, that all five Supreme Court justices voted unanimously in favor of granting Xebra Mexico an irrevocable injunction.  In order for Xebra Mexico to commence formal operations of cannabis activities, the next steps were for the Supreme Court to issue and record the official final written resolution, and to direct the Federal Circuit Court; these steps are now complete.  The final steps are for the Federal Circuit Court to enforce the Supreme Court's final decision and to direct the Mexican Health Regulatory Agency (COFEPRIS), to grant Xebra Mexico all authorizations.  Xebra is aiming to commence commercial cannabis activities this calendar year 2022.

Xebra Mexico's injunction applies specifically to the industrial cannabis sector, and explicitly 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.

Xebra believes Mexico has the potential to be one of the largest near-term country cannabis consumer markets in the world. Mexico is also within the North American free trade zone (USMCA), allowing it to benefit from its considerable cultivation and product manufacturing cost advantages over Canada and the United States.  Xebra is of the opinion that there is sufficient precedent with many agricultural crops and manufactured products, to suggest that there is a possibility that ultimately the majority of North American industrial scale cannabis production activity will occur in Mexico.