Xebra Brands Ltd. is sharpening its focus on the U.S. market, announcing the termination of its non-binding Letter of Intent to acquire 100% of BSK Holdings Inc. The decision follows a thorough review, with Xebra citing it as being in the company’s best interest. Despite the acquisition not moving forward, Xebra emphasized that its crucial partnership with BSK remains strong.
This collaboration, inked on May 14, 2025, centers on a manufacturing and distribution agreement to roll out Xebra’s ELEMENTS™ CBD product line across the United States. This strategic alliance will continue to develop independently of the terminated acquisition plan, underscoring Xebra’s commitment to bringing premium CBD products to American consumers.
Rodrigo Gallardo, Interim CEO of Xebra Brands, expressed appreciation for the BSK team’s professionalism and vision throughout the acquisition discussions. “While we will not be moving forward with a corporate transaction, we maintain a high regard for BSK’s expertise and vision,” Gallardo stated. He added, “Our focus remains on bringing high-quality CBD products to U.S. consumers under the ELEMENTS™ brand. We look forward to building a strong commercial presence in the U.S. market with the support of BSK’s operational capabilities.”
In separate, but significant, company news, Xebra is addressing delays in its audited financial statements for the year ended February 28, 2025, originally due by June 30, 2025. The company attributed these delays to recent management transitions, liquidity constraints, and unforeseen hurdles in securing resources for the audit. Consequently, Xebra has applied for and received a management cease-trade order (MCTO), which temporarily restricts trading of the company’s securities by certain directors, officers, and insiders until the annual filings are completed.
To bolster its financial position and support critical initiatives, including the audit of its annual filings, Xebra has secured a C$110,000 unsecured loan from an existing shareholder and co-founder. This loan, bearing 10% annual interest and maturing in one year, will provide essential working capital and fund general corporate purposes.
Xebra Brands is a Canadian cannabis company with a global outlook, specializing in the development and market introduction of cannabis-derived wellness products. The company holds the distinction of being the first to secure full authorization for importing, cultivating, manufacturing, and selling cannabis (under 1% THC) in Mexico. Xebra continues to expand its ELEMENTS™ product line through strategic alliances across North America.
On behalf of the Board,
“Rodrigo Gallardo”
Interim CEO
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements, as defined under applicable securities laws, concerning Xebra’s plans, expectations, and future financial performance. These statements are based on current expectations and are subject to various risks and uncertainties, many of which are beyond Xebra’s control. Actual results could differ materially from those projected. Factors that could impact these forward-looking statements include, but are not limited to, financing availability, liquidity, regulatory approvals, legislative changes, agricultural risks, market price fluctuations, and the ability to retain key personnel. Xebra undertakes no obligation to update or revise these statements, except as required by law. Readers are cautioned against placing undue reliance on these forward-looking statements.
While Xebra believes the market and industry data referenced in this release is reliable, it has not independently verified all third-party information. The company considers its market data, estimates, and assumptions to be reasonable, but cannot guarantee their absolute accuracy or completeness.
Neither the Canadian Securities Exchange nor its Market Regulator assumes responsibility for the accuracy or adequacy of this release.
SOURCE: Xebra Brands Ltd
View the original press release on ACCESS Newswire.
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