Xebra Announces Corporate Update and Correction Notice of Press Release Announcing Grant of Management Cease Trade Order

Rhea-AI Summary

Xebra Brands issued a correction regarding their earlier press release about a management cease trade order (MCTO). The company clarified that they have only applied for, but not yet received, the MCTO from the British Columbia Securities Commission regarding their delayed fiscal year 2025 financial statements due June 30, 2025. Additionally, CFO Omar Garcia and director Keith Dolo have resigned to pursue other opportunities, with CEO Rodrigo Gallardo stepping in as interim CFO. The company also announced the extension of 13,311,731 warrants with a $0.10 exercise price from June 30, 2025 to December 31, 2025.

Positive

• None.

Negative

• Company has not filed required financial statements for fiscal year 2025
• CFO and director resignations indicate potential management instability
• Need for management cease trade order suggests financial reporting issues
• Multiple extensions of warrant expiration dates could indicate financing challenges

VANCOUVER, BC / ACCESS Newswire / June 23, 2025 / Xebra Brands Ltd. (CSE:XBRA) (the "Company" or "Xebra Brands") announces a correction to the Company's press release dated June 23, 2025 announcing the grant of a management cease trade order by the British Columbia Securities Commission.

The press release issued earlier today erroneously stated a management cease trade order had been granted by the British Columbia Securities Commission. Xebra wishes to advise that it has applied for but has not been granted at this time a management cease trade order for its audited annual financial statements, management's discussion and analysis and related officer certifications for the fiscal year ended February 28, 2025 due on or before the filing deadline of June 30, 2025. Xebra will provide further updates if and when the management cease trade order is granted.

The Company also wishes to announce that Omar Garcia and Keith Dolo have resigned as the Chief Financial Officer and a director of the Company, respectively. Mr. Garcia and Mr. Dolo have resigned to pursue other business interests. The board and management team of the Company would like to sincerely thank Mr. Garcia and Mr. Dolo for their contributions to the Company and wish them success in their future endeavours. Rodrigo Gallardo, the Company's Chief Executive Officer, will act as interim Chief Financial Officer until the Company finds a suitable replacement for Mr. Garcia.

The Company also announces that, it is extending the expiry date of an aggregate of 13,311,731 outstanding warrants (the "2023 Warrants"). The exercise price of the 2023 Warrants is $0.10. Initially set to expire on September 6, 2024, the original expiration date was previously extended to December 31, 2024 and further extended until June 30, 2025. The Company has decided to further extend the expiration date of the 2023 Warrants to December 31, 2025. All other terms and conditions of the 2023 Warrants remain unchanged.

About Xebra Brands Ltd.

Xebra Brands is an international cannabis cultivation and product company, with global brands and intellectual property. Our focus includes beverages, wellness and leisure. Xebra Brands is an absolute first mover in the Mexican cannabis sector with the first ever granted authorization to a corporation by the COFEPRIS. In Canada, Xebra Brands retails its unique Vicious Citrus THC/CBN Lemonades.

On Behalf of Xebra Brands Ltd.

"Rodrigo Gallardo"
Chief Executive Officer

For further information please contact:

Tel: (833) XEBRA 88
Email:ir@xebrabrands.com

Forward-Looking Information

Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes, but is not limited to, the timing and grant of a management cease trade order for the Company's annual filings, the business goals and objectives of the Company and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.

Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, failure to receive a management cease trade order for the Company's annual filings, the inability of the Company to retain the authorizations granted by COFEPRIS; changes in government legislation, taxation, controls, regulations and political or economic developments in various countries; risks associated with agriculture and cultivation activities generally, including inclement weather, access to supply of seeds, poor crop yields, and spoilage; compliance with import and export laws of various countries;significant fluctuations in cannabis prices and transportation costs; the risk of obtaining necessary licenses and permits; inability to identify, negotiate and complete potential acquisitions, dispositions or joint ventures for any reason; the ability to retain key employees; dependence on third parties for services and supplies; non-performance by contractual counter-parties; general economic conditions; the continued growth in global demand for cannabis products and the continued increase in jurisdictions legalizing cannabis; the timely receipt of regulatory approvals for license applications on terms satisfactory to the Company; and other related risks as more fully set out in the registration statement of Company and other documents disclosed under the Company's filings at www.sedarplus.com. In addition, there is no assurance that the Company will: be a low-cost producer or exporter; obtain a dominant market position in any jurisdiction; or have products that will be unique.

The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's objectives, goals or future plans, the timing thereof and related matters. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

SOURCE: Xebra Brands Ltd.

View the original press release on ACCESS Newswire

FAQ

Why did Xebra Brands (XBRAF) apply for a management cease trade order in 2025?

Xebra Brands applied for a management cease trade order due to delayed filing of their audited annual financial statements, MD&A, and officer certifications for the fiscal year ended February 28, 2025, which are due by June 30, 2025.

Who resigned from Xebra Brands management team in June 2025?

Omar Garcia resigned as Chief Financial Officer and Keith Dolo resigned as director of Xebra Brands to pursue other business interests.

Who is the interim CFO of Xebra Brands following Omar Garcia's resignation?

Rodrigo Gallardo, the company's Chief Executive Officer, will serve as interim Chief Financial Officer until a suitable replacement is found.

What changes were made to Xebra Brands' 2023 Warrants expiration date?

Xebra Brands extended the expiration date of 13,311,731 warrants (exercise price $0.10) from June 30, 2025 to December 31, 2025.

What was the correction in Xebra Brands' June 23, 2025 press release?

The correction clarified that Xebra had only applied for, but not yet been granted, a management cease trade order from the British Columbia Securities Commission, contrary to what was stated in their earlier press release.