MEXICO........with 16-18 million smokers...... In case you missed this news.....Mexico's Supreme Court ruling legalizes hemp
This company will have a 1-3 year First Mover Advantage....
Hope that Setti gets on the phone to XBRA ASAP!!!!!!
https://www.baystreet.ca/stockstowatch/11800/Mexicos-Supreme-Court-Ruling-Just-Gave-This-Cannabis-Company-First-Mover-Advantage
VANCOUVER, BC, Dec. 2, 2021 /PRNewswire/ - Xebra Brands Ltd. ("Xebra") (XBRA: CSE) (XBRAF: OTC) (9YC: FSE), a cannabis company, announces that its wholly owned Mexican subsidiary, Desart MX, SA de CV ("Xebra Mexico"), has been granted an injunction by the Mexican Supreme Court, that has positioned it with an outright first-mover-advantage in the Mexican CBD and CBG market. All five Supreme Court justices voted unanimously in favor of the injunction to Xebra Mexico.
The Supreme Court decision is irrevocable and cannot be appealed. Next the Supreme Court will mandate the Federal Circuit Court that previously heard the case, to enforce the Supreme Court's final decision and direct the Mexican Health Regulatory Agency (COFEPRIS) to grant Xebra all authorizations. Xebra expects this process to be completed as soon as practicable.
As a result of the granting of the injunction and Mexican Law, Xebra Mexico is the only company in Mexico that will be authorized to legally carry-out the following activities: import cannabis seeds, cultivate cannabis, process cannabis, extract cannabinoids, and manufacture cannabis products. Xebra Mexico could also sell cannabis products within Mexico and for export. Xebra believes its first-mover-advantage in the Mexican CBD and CBG market could last 1 to 3 years. Commercialization of high-THC cannabis remains prohibited in Mexico; however, Mexican Congress is in the process of debating a bill to fully legalize. Earlier this year, possession of small amounts of cannabis was decriminalized.
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 and CBG products, such as tinctures, oils, topicals, edibles, beverages, concentrates, distillates, emulsions, and biomass etc., and certain uses of the cannabis flower.
There is a significant amount of misinformation circulating about the legal status of cannabis in Mexico. While personal possession of small amounts of cannabis has been decriminalized, and legalization is underway, the fact is that until today's Supreme Court decision in favor of Xebra Mexico, commercial cannabis activities have been very limited and presently fall into 3 categories:
- INDUSTRIAL USE - Only Xebra Mexico will be authorized to legally cultivate and process hemp, and manufacture CBD and CBG products such as tinctures, oils, topicals, edibles, beverages, concentrates, distillates, emulsions, and biomass, and can commercialize the cannabis flower. To the best of Xebra's knowledge, perhaps only two other companies in Mexico presently legally have limited offerings of CBD products on shelves, which they import into Mexico for distribution and sale. The companies obtained those rights through a legal process; however, they cannot cultivate or manufacture, and their right was not granted by the Supreme Court and can therefore be revoked by authorities at anytime. No company in Mexico can do anything with THC at this time under the industrial category.
- MEDICINAL USE - This regulation under the General Health Law (Law of 2017) was enacted in January 2021. This category applies ONLY to the pharma industry and includes THC and all other cannabinoids such as CBD and CBG. Cultivation and processing only for the manufacture of cannabis pharmaceutical drugs is allowed, however in practice, to approve a cannabis drug under this category, lengthy many-year human pharma-trials are required, so in essence it is not expected that any company will cultivate or commercialize under this category in the foreseeable future. This category also includes research licenses granted to labs, universities, big pharma etc.
- ADULT USE - No legal framework exists for the commercialization of adult use cannabis however, Congress is debating a bill, and federal legalization may occur in 2022. If a legal framework is approved, it could be up to 3 years before any company can commence operations, due to the fact that a lengthy application and approval/inspection process would likely be necessary.
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), giving it 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.