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Xebra provides update on commercial expansion

Xebra's management and board are assessing potential partnerships and accretive mergers and acquisitions (M&A) in both the US and Mexico to enhance its portfolio of CBD brands. These initiatives aim to align with Xebra's core objectives of accelerating growth, diversifying product offerings, and increasing market share in the rapidly expanding CBD industry. By aligning with complementary businesses and acquiring high-potential cannabis and CBD brands, Xebra is poised to strengthen its market presence and deliver greater value to shareholders.

In the United States, Xebra is exploring opportunities to partner with established cannabis companies and brands that have demonstrated strong market performance and innovation in the US and who are excited about expanding into the Mexican market as the country opens up. Xebra has been active over the last year in discussions with a number of the leading MSOs, brands, and LPs about distribution, brand licensing deals, and expansion opportunities together in Mexico. As Xebra moves forward with commercializing operations on the ground in Mexico, more announcements on this vertical will be made available.

There are also a number of potential acquisitions the Company is currently evaluating which are attractive in the space. Valuations are at very attractive multiples, and Xebra is particularly interested in companies that produce positive EBITDA and have a strong brand and a loyal customer base to add to Xebra's portfolio. The focus will be on identifying companies that align with Xebra's strategic focus and growth plans as well as provide synergies for the expansion of products and add distribution, revenue, key personnel, and profitability.

In Mexico, Xebra is leveraging its first-mover advantage and unique market position. Over the past year, the company's fully owned Mexican subsidiary, Desart MX S.A. de C.V., is leading the charge in submitting new products for regulatory approval and establishing partnerships with local retailers. Xebra is a pioneer in the Mexican cannabis market by producing and distributing the first 100% legal and 100% Mexican-made CBD products.

Commercial expansion in Mexico
Xebra will be bolstering its commercial team over the coming months in anticipation of the launch of the Elements brand in select major retailers in Mexico that are looking to carry CBD products for their consumer base. The company is undertaking several key commercial activities to ensure the successful launch and sustained growth of its products in this market. This includes the development of a consumer-focused growth strategy rooted in market intelligence, as well as locally relevant market entry plans.

These efforts are designed to build strong relationships with retailers and position Xebra's products which are seen as the preferred choice and only legal option seeking high-quality CBD products in Mexico.

"We are excited about the efforts the team has taken over the last two quarters to position ourselves," said Rodrigo Gallardo, Interim CEO of Xebra Brands. "By focusing on strategic partnerships and accretive M&A in both the US and Mexico, along with our robust commercial activities, we are well-positioned to capitalize on the significant opportunities in the CBD market in Mexico ahead of legalization. Our dedicated team is working tirelessly to ensure that Xebra's Elements brand becomes a household name, delivering exceptional products that meet the highest standards of quality and consumer satisfaction."

For more information:
Xebra Brands

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