Xebra Brands (XBRA.C) Shows Off Its Stripes, Set to Begin Trading on CSE

Xebra Brands Ltd.

Xebra Brands Ltd. (“Xebra”) is a cannabis cultivation and product company with global brands and intellectual property. The Company’s focus includes wellness and leisure as well as beverages. Speaking of beverages, the Company has filed trademarks worldwide for its cannabis-infused beverage brands, including Madcap, Highjack, Holahi, Conquer, Highcastle, and Vicious Citrus. For starters, let’s brush up on our cannabis statistics. Globally, cannabis is legalized in more than 30 countries and it has been decriminalized in an additional 20 countries. That being said, the global cannabis market is projected to reach a valuation of USD$103.9 billion by 2024, with a majority of the market’s value being generated in North America and Europe. Having filed more than 400 trademark applications in over 40 countries, Xebra is well-positioned to capitalize on this market.

In addition to its product portfolio, Xebra plans to establish a significant cultivation presence in Latin America, utilizing open fields and hoop houses. The financially unsustainable nature of cannabis cultivation in North America has led many cannabis cultivators to seek out cultivation opportunities in Latin America, including notable companies like Canopy Growth, Aurora, and Tilray. Cultivation aside, the commercialization and sales of cannabis in Mexico is a whole different ball game. Regarding Mexico’s cannabis legalization status, 2019 was a transformative year for the country, with the Supreme Court declaring cannabis prohibition unconstitutional.

In the same year, Xebra filed a claim to Mexico’s Supreme Court in January 2019. The injunction requested by the Company 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. With this in mind, it is in the opinion of Xebra’s legal team that the Company has a very strong case and a high probability of success, with a ruling expected in the short-near-term.

Upon legalization of cannabis, Mexico will become the largest cannabis consumer market in the world, until the US finally decides to federally legalize cannabis. 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. If Xebra’s claim is successful, the Company will achieve its status as the first mover in cannabis in Mexico. In an interview between Equity Guru and Robert Giustra, a Director at Xebra, Mr. Giustra commented, “the real advantage of Mexico is the free trade agreement. We have a distinct advantage of being within NATFA (USMCA), which comes with a lot of advantages.” Some of these benefits include access to the North American market with significantly cheaper labor expenses, lower land costs, and no tax or duty across the border.

Take a Drink with Xebra

Ready-to-drink (RTD) beverages and packaged beers currently represent USD$1 trillion in the global market. More specifically, the US market is worth more than USD$225 billion while the Canadian market is in excess of USD$19 billion. To put things into perspective, the relative market for cannabis-infused beverages is anticipated to be 14% of the overall alcoholic beverage market. With this in mind, Xebra is credited for developing a diverse portfolio of cannabis-infused beverages, including seltzers, soft drinks, iced teas, lemonades, and waters. In total, the Company has developed approximately 40 cannabis-infused formulations and six distinct beverage brands, each of which is protected by trademark IP. In particular, Xebra is poised to launch its Vicious Citrus THC lemonade into the Canadian market through a recently established manufacturing and distribution agreement with Bevcanna Enterprises Inc.

In our interview, Mr. Giustra provided Equity Guru with commentary related to the Company’s sports beverages and energy drinks under development. According to Mr. Giustra, Xebra has decided to go to market first with its Vicious Citrus THC lemonade. Keep in mind, there are currently no marketed cannabis-infused lemonade beverages in Canada, presenting a unique opportunity for the Company to capitalize on. However, Mr. Giustra also references cannabidiol (CBD) as an effective treatment for concussions. He explains that the Company has been working with the Director of Applied Science & Strength Coach for an undisclosed NHL team to develop a beverage capable of addressing the team’s supplementation needs in one product. Bearing the fruits of its labor, Xebra developed Conquer, a sports beverage packed with 200 mg of CBD, N-Acetyl Cysteine (NAC), and other nutrients prized by athletes.

An animal study conducted in 2012 using rats found that the https://e4njohordzs.exactdn.com/wp-content/uploads/2021/10/tnw8sVO3j-2.pngistration of CBD after a brain injury had long-lasting, positive effects on the brain. Some of these effects include reduced severity of the injury and the restoration of overall neurological function. More recently, in March 2019, the NHL Alumni Association (NHLAA), NEEKA Health Canada, and Canopy Growth Corporation announced a clinical research partnership to investigate the efficacy of CBD for the treatment of post-concussion neurological diseases in former NHL players. According to Calyx Wellness, studies have demonstrated CBD’s promising potential in treating neurodegenerative disorders and other nerve disruptions in the brain, including concussions. Injuries like concussions disrupt the nerves and increase their sensitivity, which transmits signals of pain to the brain.

With this in mind, CBD blocks these receptors from sending pain signals to the brain, thereby allowing the body and mind to recover. Regarding the launch of Xebra’s Vicious Citrus THC lemonade in Canada, Mr. Giustra commented, “the plan is to get Vicious Citrus out first, and it’s very possible that the sports drink might be next.” It is worth noting that all of Xebra’s cannabis-infused beverages are made utilizing SOLUTECH™, a leading clinically-backed and patented delivery IP for cannabinoids. SOLUTECH™ boasts an onset time of fewer than 10 minutes, reaching peak blood levels of THC within one hour. Looking forward, the Company expects to launch its Vicious Citrus THC lemonade in Spring 2022.

Latest News

Getting back to Xebra’s latest news, the Company announced today that it has received final approval to list its common shares on the Canadian Securities Exchange (CSE). In accordance with its listing, 125,619,492 issued and outstanding common shares will commence trading at market open on October 18, 2021, under the ticker symbol XBRA. In total, approximately 14.71% of the common shares issued will be held by Xebra’s directors, officers, and consultants. Additionally, on July 2, 2021, the Company received a preliminary cannabis license from the Dutch Ministry of Health, which provides for the possession, cultivation, processing, and transportation of cannabis.

It should be noted that Xebra is 1 of 5 companies to be selected by the Dutch government to participate in trial medicinal cannabis cultivation. When asked for commentary, Mr. Giustra stated, “what it really comes down to is the business plan, quality of the flower, and consistency of crops.” With this in mind, Mr. Giustra believes that all five companies, Xebra included, are confident in these aspects. However, Xebra stands out from the pack due to its notable presence in the Netherlands. For example, Mr. Giustra is the founder of an organic food company in the Netherlands. Additionally, Xebra has an office in the Netherlands, is publically traded, and has its products on shelves in 12 European countries. It is also worth noting that Xebra has a business arrangement with one of the best universities in the Netherlands for the Company’s genetics. Mr. Giustra also emphasized that:

“We are actually carrying out our trial in the Netherlands. At least two, possibly three, of the five companies are carrying out their trials outside of the country, with at least two in Canada…us having Dutch angles and connections will go over well for Xebra.”

With this in mind, Xebra is endeavoring to be awarded 1 of 2 licenses, with a contract for up to 6 years, providing revenues of up to €70.5 million, to co-supply all pharma-grade cannabis to be sold in the Netherlands. Furthermore, 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. Additionally, an optional two-year extension will be offered for each of the two successful companies, which 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. Construction of Xebra’s cannabis cultivation facility in the Netherlands 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.

Lastly, Xebra holds all relevant cannabis licenses in Colombia. With this in mind, final agronomic evaluations to complete the registration of the initial 10 of Xebra’s cultivars commenced in June, and are expected to be completed by year-end. Upon completion, Xebra and its partners can apply for quota, in order to begin commercial activities, which are planned for 2022.