On December 1, the Supreme Court granted Xebra Brands’ (CSE:XBRA) injunction that now positions the company has an outright first mover advantage in the Mexican CBD and CBG markets. It now authorizes it as the first in Mexico to legally cultivate hemp, and includes the right to commercialize hemp derived cannabinoids, such as CBD and CBG. Other top cannabis companies to keep an eye on include Aurora Cannabis (NASDAQ:ACB)(TSX:ACB), Canopy Growth (TSX:WEED)(NASDAQ:CGC), Tilray Inc. (NASDAQ:TLRY)(TSX:TLRY), and OrganiGram Holdings (NASDAQ:OGI)(TSX:OGI).
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.