Xebra Brands Ltd. announced the next step in their joint venture with Chapingo University announced in March, 2023 with a Cultivation Agreement which will focus on the first commercial cultivation of cannabis and hemp with less than 1% THC in Mexico, and the research and development of cannabis cultivars for Mexico. This agreement signed between Chapingo University (UACh) and Xebra Brands-Desart MX, among other things, is the first of its kind and will develop Cultivation, Research and Development Protocols for legal cannabis cultivation in Mexico. The first collaborative actions between ChAU and Xebra will include: The importation of a wide selection of cannabis seeds; Cultivating and analyzing the phenological behavior and productivity of industrial hemp flower and fiber under greenhouse conditions; Assessing the strains that are best suited for different geological regions within Mexico and that help to control pests and the resistance to diseases; Producing high cannabinoid yielding sativa L cannabis crops with less than 1% THC both in the fields and in greenhouse environments, controlled by the University of Chapingo.

All intellectual property derivatives from this will be shared between Xebra and Chapingo. All material results of the cultivation (flower, fibers, etc) belong exclusively to Xebra Brands. As a second stage following the success of this project, both organizations plan to set up extraction technologies in Chapingo's laboratories.

In addition to generating a model of technological innovation for the production of cannabis under protected agriculture conditions (greenhouses) for the central zone of Mexico; it will be possible to propose to the COFEPRIS a model of technological and organizational innovation for the production of hemp in outdoor environments.