Xebra Brands Ltd. Faces Cease Trade Order Due to Delayed Financial Filings

Xebra Brands Faces Trading Suspension Amid Financial Filing Delays

VANCOUVER, BC – August 22, 2025 – Xebra Brands Ltd. (CSE: XBRA; OTC PINK: XBRAF; FSE: 9YC), a prominent player in the cannabis industry, has announced it will not meet the deadline for filing its annual financial statements for the fiscal year ending February 28, 2025. The company anticipates that the British Columbia Securities Commission (BCSC) will issue a cease trade order (CTO) due to this failure, which could halt trading on the Canadian Securities Exchange (CSE) until the necessary documents are submitted.

The delay in filing, originally due by June 30, 2025, stems from liquidity constraints and management transitions within the company. A previous management cease trade order (MCTO) was issued on July 2, 2024, due to similar issues. The anticipated CTO is expected to replace the MCTO, further complicating Xebra’s trading status.

In a bid to address these financial challenges, Xebra entered into a loan agreement in July 2025 for up to C$110,000 to facilitate the completion of its annual filings. However, the company did not receive the funds, leading to the termination of the loan agreement. Xebra is currently exploring alternative funding sources and expects to provide updates on its capital procurement efforts in the coming weeks.

The CTO, which will be issued under Multilateral Instrument 11-103, will prohibit any trading or purchasing of Xebra securities across Canada until the required documents are filed with the BCSC. This regulatory action comes at a time when the company is also facing a downgrade in its OTC Markets listing, moving from the OTCQB Market to the OTC Pink Open Market, which is known for its less stringent regulations.

Despite these setbacks, Xebra Brands remains committed to its mission of developing and commercializing cannabis-derived wellness products. The company has made strides in Mexico, being the first to receive full authorization to import, cultivate, manufacture, and sell cannabis with less than 1% THC.

As the cannabis market continues to evolve, stakeholders will be closely monitoring Xebra’s next steps and its ability to navigate these financial hurdles. Interim CEO Rodrigo Gallardo has expressed optimism about securing the necessary funding and completing the required filings, but the path ahead remains uncertain.

For more information, stakeholders can reach out to Xebra Brands at ir@xebrabrands.com or call +52 55 6387 2293.

This story will be updated as new information becomes available.