With a growing amount of strong evidence for the medical application of psilocybin, a psychoactive ingredient found in mushrooms, investors are preparing for a coming legalization that seems inevitable. At the moment, there are already a series of companies jockeying for a position in the medicinal mushrooms market, with or without psilocybin attached, including The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF) and Jamieson Wellness Inc. (TSX:JWEL), as well as major retailers such as Walmart Inc. (NYSE:WMT), and CVS Health Corporation (NYSE:CVS).
The most recent to enter the mushroom arena is The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF), who announced this week an agreement to acquire an interest in Absolum Health Corp. which is acquiring One Up Pure Energy Inc. The acquisition adds to Yield’s growing portfolio of wellness assets, that includes the popular hemp-root based brands Urban Juve Wellness, and Wright & Well, as well as other white-label agreements. To date, the company has acquired or developed more than 200 cannabis beauty, wellness, and beverage formulas for commercialization.
One Up Pure Energy is a manufacturer of several healthy, all-natural, plant-based ready-to-eat snacks. These include mushroom power pellets dubbed “The Reishi Relax” and “Cordyceps Power Up”, both of which are approved for sale by the Health Canada and Vancouver Health Authority.
“Our research indicates that edible mushrooms are in a period of high growth,” said Yield Growth CEO Penny White in the company’s latest press release. “Edible Mushrooms, like hemp, may experience hyper-growth as the movement to decriminalize psilocybin (magic mushrooms) grows. Of great interest to us is the potential for legal research and clinical trials of psilocybin ‘magic mushrooms’. We intend to use our partial acquisition and alliance with Absolem as a launch pad for activity in the exciting world of psychedelic medicine.”
THE MUSHROOM REVOLUTION
Aiding Green’s company’s assessment is a recent report from Grand View Research that expects the global healthy snacks market size to reach US$32 billion by 2025, coupled with an even more impressive report from Research and Markets that projects the global edible mushrooms market to grow at a CAGR of 7.95% from US$42 billion in 2018 to US$62 billion by 2023.
The Yield Growth entry into the mushroom market joins the company into a still-small group of companies with exposure to the space.
Major supplement producers Jamieson Wellness Inc. (TSX:JWEL) have been long touting the benefits of mushrooms, including with the brand’s daily Mushroom Complex capsules. Among the benefits claimed are that this form of traditional medicine that includes a blend of reishi, lion’s man, shiitake and chaga mushrooms helps support the body’s immune system, while also increasing energy.
According to The New York Times, Johns Hopkins Medicine announced the launch of the Center for Psychedelic and Consciousness Research, established with $17 million in commitments from wealthy private donors and a foundation. The center is the first of its kind in the country to study compounds like LSD and psilocybin for a range of mental health problems, including anorexia, addiction and depression.
While Vice.com highlighted the decriminalization of magic mushrooms in Denver and Oakland, they stressed that it “doesn’t mean we’re on the brink of a world where you can pop into a CVS [Health Corporation (NYSE:CVS)] and get a psilocybin tablet”.
However, both CVS and retail giant Walmart Inc. (NYSE:WMT) both offer medicinal mushroom products for sale on their shelves and online. Walmart sells a wide selection of mushroom-based supplement products including products from Mushroom Wisdom (cordyceps), Solaray (reishi) and Host Defense (lion’s mane).
With expert branding strategists moving into the space, it’s to be expected that the mushroom trend will continue to rapidly grow.
STOKING A MUSHROOM BOOM
In a strategic move to enter the mushroom space, The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF) acquired a 30% interest in Absolem Health Corp., which owns 100% of One Up Pure Energy Inc., adding its branding expertise to the product line’s expansion.
“My passion and goal is to improve access to healthy edible mushrooms by scaling up One Up Pure Energy into an international edible mushroom brand,” said One Up and Absolem CEO, Ken Kuiper. “As these medicinal mushroom extracts gain popularity, they are mainly available as powdered extracts, capsules and drink mixes. We are providing a convenient, to-go, ready to eat snack product.”
Yield Growth has agreed to pay $63,000 for 3,150,000 shares at $0.02 per share which will amount to a 30% interest in the company. Further capital rounds are agreed to at limited amounts up to $0.30 per unit. Yield Growth has also signed an Advisory Agreement to provide various services including bookkeeping, project management and corporate communications. Yield will be compensated for its services at cost plus 25% and will receive a bonus of 500,000 shares if Absolem achieves a listing on a stock exchange via a going public transaction within 5 months.
To date, Yield Growth has been at the forefront of developing new products in the cannabinoid space, particularly specializing in products made from the company’s proprietary hemp root formulas.
“We continue to negotiate more licensing and distribution agreements, and we plan on signing several new deals before year end,” said Penny White, CEO of Yield Growth in a recent press release. “Our continued development of our catalogue of hemp formulas for CBD and THC infusion supports our international licensing strategy.”
Yield Growth continues to develop its catalogue with 26 new products in the process of stability testing at a laboratory in British Columbia, including: Six (6) essential oil perfumes, four (4) natural remedy blends with essential oils, foot cream and hand cream made with proprietary hemp root oil and exotic botanicals. The company has also developed eight (8) men’s products, including four essential oil colognes, shaving cream, hair balm, beard oil, and eight (8) white label versions of men’s products without hemp root oil.
All formulas in Yield Growth’s catalogue are cruelty free and made with high-quality essential oils and botanical extracts. They’re also free from harmful substances, including sulfates, SLS, SLES, parabens, formaldehydes or formaldehyde-releasing agents, phthalates, mineral oil, artificial fragrances, dyes, retinyl palmitate, oxybenzone, coal tar, hydroquinone and triclosan.
The company’s products capitalize on the growing consumer trend to seek products with natural, pure ingredients. Many of Yield Growth’s beauty and wellness formulas contain hemp root oil made with the company’s patent-pending extraction technology, and are designed to be infused with cannabinoids, such as CBD and THC.
MAINSTREAM MUSHROOM POTENTIAL
According to Wikipedia, the legal status of psilocybin mushrooms vary worldwide. In many countries, the substance is prohibited unless authorized for clinical trial or research purposes. In the meantime, consumers will have to look towards non-psychedelic mushroom products for their wellness needs.
Moving forward, major supplement producers/sellers such as Jamieson Wellness Inc. (TSX:JWEL) may very well have a small range of mushroom-based products in their portfolios, but more could be on the way.
Jamieson Wellness Inc. (TSX:JWEL) currently sells daily Mushroom Complex capsules made from a blend of reishi, lion’s man, shiitake and chaga mushrooms. The company touts this formula to help support the body’s immune system, while also increasing energy.
Somewhat enthusiastically, Walmart Inc. (NYSE:WMT) is carrying a plethora of mushroom-based wellness products, including the Mushroom Wisdom (cordyceps), Solaray (reishi) and Host Defense (lion’s mane) lines, and the Country Farms Mighty Mushrooms Dietary Supplement, Immunity Superfood product.
CVS Health Corporation (NYSE:CVS) also carries products, including the Host Defense line of products with a variety of products including Lion’s Mane, MyCommunity, and Stamets 7, and the Genius Brand’s Genius Mushrooms line.
Now with the guidance and support of The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF), One Up Pure Energy Inc. products will likely be seen on a growing number of shelves. Currently, the company provides a trio of mushroom-based products, including Lion Mane Brain Boost, Cordyceps Power Up, and Reishi Relax formulas.
The healing properties of mushrooms are vast, powerful and real. The One Up line provides a healthy alternative to caffeinated and sweetened energy products, all made with less than 10 ingredients that are all natural, organically grown, and not produced in a lab.
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