Organto announced that it has closed the sale of the Company's former Colombian cannabis subsidiary, Medicannabis S.A.S. to Xebra Brands Ltd. Organto had announced previously that it had received both shareholder approval and acceptance of the TSX Venture Exchange, subject to certain closing deliverables which have now been completed.
Xebra is a private cannabis company, focused on the design and delivery of wellness and leisure products. It has acquired cultivation and processing licences in Colombia, and is developing brands, and cannabis-infused beverages, for sale globally where cannabis is legal. Trademarks are being filed worldwide for Xebra's inaugural cannabis infused beverage brands, including: MADCAP soft drinks, HIGHJACK energy drinks, HolaHi iced teas, VICIOUS CITRUS lemonade, and CONQUER sports drinks. Xebra's Mexican subsidiaries Elements Bioscience and Sativa Group, specialize in CBD wellness products, with 13 applications awaiting approval. Xebra is aiming for a public listing in Q2 2020. As per the terms of the agreement with Xebra, Organto received 7,124,630 common shares of Xebra, representing approximately 7.44% of the current proforma outstanding shares of Xebra.
"We are pleased to have closed this transaction and are excited to be a shareholder of Xebra, providing Organto with an important asset for the future. We believe Xebra's continued execution of their business plan should create tremendous shareholder value that can be monetized in the future for the benefit Organto's shareholders," commented Steve Bromley, Chair and Interim CEO of Organto Foods Inc. "With this transaction we will continue to have an investment in this exciting and fast-growing sector while focusing operationally on our fast-growing organic vegetables and fruit platform."