Cannabis company Xebra Brands Ltd. XBRAF XBRA 9YC announced Wednesday it has finalized a CBD supply agreement with ICAN Green S.A. de C.V. to supply CBD isolate to Desart MX S.A. de C.V., a division of Xebra, for use in the manufacturing of legal CBD products in Mexico. This collaboration leverages ICAN’s reputation as a leader in cannabis-based products across Latin America.
Details Of The Agreement
Under the terms of the agreement, ICAN will be the exclusive supplier of CBD to Desart MX for two years, with the possibility of automatic annual renewal. This collaboration marks a significant milestone for both companies and underscores their commitment to partnering with the Desart MX, a division of Xebra, the only corporation in Mexico federally approved by the COFEPRIS (Mexican FDA) to import and acquire cannabis seeds, cultivate and harvest cannabis, process and produce cannabis, and sell cannabis products with less than 1% THC, both domestically and through export.
The agreement’s commercial terms, based on a per-kilogram pricing model with discounts for larger purchases, reflect a strategic approach to market penetration and growth.
Management Comments On The Agreement
Erick Ponce, CEO of ICAN and director of Xebra expressed his enthusiasm about the partnership. “This agreement exemplifies our commitment to Xebra and our desire to continue forward in growing the legal CBD products market in Mexico, and we look forward to supporting Desart MX in their endeavours,” Ponce said.
Similarly, Rodrigo Gallardo, interim CEO of Xebra and Desart MX, emphasized the agreement’s role in accelerating the commercialization process of CBD products in Mexico, bypassing the need for in-house CBD harvesting and extraction.
Both Xebra and ICAN view this partnership as a catalyst for strengthening their market positions and driving success in the burgeoning Mexican CBD industry.
XBRAF Price Action
XBRAF's shares were trading at $0.037 per share at the time of this writing around 11 AM ET Wednesday.
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Photo: Benzinga edit with Zero Degree 247 and MR.Yanukit on Shutterstock
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The Benzinga Cannabis Capital Conference is coming to Florida
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!