Cannabis company Xebra Brands Ltd. (OTCQB:XBRAF) (CSE:XBRA) (FSE: 9YC0) 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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