In a historic move, Xebra Brands Ltd. (CSE: XBRA) could be the first and only firm to legally commercialize cannabis in Mexico. The firm announced today that the Mexican Supreme Court has set December 1, 2021 to deliberate and vote on Xebra’s attempt to obtain an injunction, potentially allowing it to operate in the country.
The cannabis firm is challenging the unconstitutionality of Mexican cannabis law, and after years of navigating the lower courts, is now set to appear before the country’s top court.
“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,” the firm said in a statement.
If the court granted the firm the injunction, it will be allowed to import cannabis seeds into Mexico, and process cannabis with legally-mandated THC levels. Effectively, it would be legal for the firm to operate and sell cannabidiol and cannabigerol in the country, making it the only company to do so.
Currently, the commercialisation of cannabis is still not legal in Mexico. In 2018, the Mexican Supreme Court ruled that prohibiting the recreational use of cannabis was unconstitutional, setting a precedent for its legal use. This ruling also ordered the government to pass a law legalizing cannabis use but it was only in March 2021 when Congress approved the bill but failed to pass the Senate before the end of the previous legislative session.
In June 2021, the top court voted to legalize the recreational use of cannabis for adults, allowing personal cultivation and consumption. However, commercialisation of cannabis wasn’t part of the decision.
The cannabis firm is represented in Mexico by its subsidiary Desart MX, SA de CV.
Xebra Brands last traded at $0.20 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
