Xebra Brands Ltd. announced a comprehensive strategic update on partnerships, accretive M&A opportunities, and expanding its commercial footprint in both the United States and Mexico. This strategic focus underscores Xebra's commitment to becoming a dominant player in the global cannabis and hemp industry by leveraging its unique market position and expertise. Strategic Partnerships in the US and Mexico: 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 MSO's, brands and LP's about distribution, brand licensing deals, 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. 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 it's 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.