(MENAFN – Baystreet.ca) With a growing amount ofstrong evidence for the medical application ofpsilocybin , a psychoactive ingredient found inmushrooms,investors are preparingfor a coming legalization that seemsinevitable . At the moment, there are already a series ofcompanies jockeying for a position in the medicinal mushrooms market, with orwithout psilocybin attached, including The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF),Herbalife Nutrition Ltd. (NYSE:HLF) , 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 themushroom arena is The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF), who announcedthis week an agreement to acquire an interest in Absolum Health Corp. which is acquiringOne Up Pure Energy Inc. The acquisition adds to Yield’s growing portfolio ofwellness assets, that includes the popular hemp-root based brands Urban JuveWellness, and Wright & Well, as well as other white-label agreements. Todate, the company has acquired or developed more than 200 cannabis beauty,wellness, and beverage formulas for commercialization.
One Up Pure Energy is a manufacturerof several healthy, all-natural, plant-based ready-to-eat snacks. These includemushroom power pellets dubbed “The Reishi Relax” and “Cordyceps Power Up”, bothof which are approved for sale by the Health Canada and Vancouver HealthAuthority.
“Our research indicates that ediblemushrooms are in a period of high growth,” said Yield Growth CEO Penny White inthe company’s latest press release. “Edible Mushrooms, like hemp, mayexperience hyper-growth as the movement to decriminalize psilocybin (magicmushrooms) grows. Of great interest to us is the potential for legal researchand clinical trials of psilocybin ‚Äėmagic mushrooms’. We intend to use ourpartial acquisition and alliance with Absolem as a launch pad for activity inthe exciting world of psychedelic medicine.”
THE MUSHROOM REVOLUTION
Aiding Green’s company’s assessment isa recent report from Grand View Research that expects the globalhealthy snacks marketsize to reach US$32 billion by 2025, coupled with an evenmore impressive report from Research and Markets that projects theglobal edible mushrooms marketto grow at a CAGR of 7.95% from US$42 billion in 2018 toUS$62 billion by 2023.
The Yield Growth entry into themushroom market joins the company into a still-small group of companies withexposure to the space.
Major supplement producers JamiesonWellness Inc. (TSX:JWEL) have been long touting the benefits of mushrooms,including with the brand’s daily Mushroom Complex capsules. Among the benefitsclaimed are that this form of traditional medicine that includes a blend ofreishi, lion’s man, shiitake and chaga mushrooms helps support the body’simmune system, while also increasing energy.
Perhaps a bit slower on the uptake,but still in the sector, is Herbalife Nutrition Ltd. (NYSE:HLF) which currentlyutilizes mushrooms (cordyceps, reishi, and shiitake) as active ingredients inits Formula 3 Cell Activator product. However, with new research on the way,even large-scale sellers such as Herbalife may add more mushroom products totheir catalogue.
According to The New York Times , Johns Hopkins Medicine announced the launch of theCenter for Psychedelic and Consciousness Research, established with $17 millionin commitments from wealthy private donors and a foundation. The center is thefirst of its kind in the country to study compounds like LSD and psilocybin fora range of mental health problems, including anorexia, addiction anddepression.
WhileVice.com highlightedthe decriminalization of magic mushrooms in Denverand Oakland, they stressed that it “doesn’t mean we’re on the brink of a worldwhere you can pop into a CVS [Health Corporation (NYSE:CVS)] and get apsilocybin tablet”.
However, both CVS and retail giantWalmart Inc. (NYSE:WMT) both offer medicinal mushroom products for sale ontheir shelves and online. Walmart sells a wide selection of mushroom-based supplementproducts including products from Mushroom Wisdom (cordyceps), Solaray (reishi)and Host Defense (lion’s mane).
With expert branding strategistsmoving into the space, it’s to be expected that themushroom trendwill continue to rapidly grow.
STOKING A MUSHROOM BOOM
In a strategic move to enter themushroom 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 improveaccess to healthy edible mushrooms by scaling up One Up Pure Energy into aninternational edible mushroom brand,” said One Up and Absolem CEO, Ken Kuiper.”As these medicinal mushroom extracts gain popularity, they are mainlyavailable as powdered extracts, capsules and drink mixes. We are providing aconvenient, to-go, ready to eat snack product.”
Yield Growth has agreed to pay $63,000for 3,150,000 shares at $0.02 per share which will amount to a 30% interest inthe 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 providevarious services including bookkeeping, project management and corporatecommunications. Yield will be compensated for its services at cost plus 25% andwill receive a bonus of 500,000 shares if Absolem achieves a listing on a stockexchange via a going public transaction within 5 months.
To date, Yield Growth has been atthe forefront of developing new products in the cannabinoid space, particularlyspecializing in products made from the company’s proprietary hemp rootformulas.
“We continue to negotiate morelicensing and distribution agreements, and we plan on signing several new dealsbefore year end,” said Penny White, CEO of Yield Growth in a recent pressrelease. “Our continued development of our catalogue of hemp formulas for CBDand THC infusion supports our international licensing strategy.”
Yield Growth continues to develop its catalogue with 26 new productsin the process of stability testing at a laboratory in British Columbia,including: Six (6) essential oil perfumes, four (4) natural remedy blends withessential oils, foot cream and hand cream made with proprietary hemp root oiland exotic botanicals. The company has also developed eight (8) men’s products,including four essential oil colognes, shaving cream, hair balm, beard oil, andeight (8) white label versions of men’s products without hemp root oil.
All formulas in Yield Growth’scatalogue are cruelty free and made with high-quality essential oils andbotanical extracts. They’re also free from harmful substances, includingsulfates, 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 onthe growing consumer trend to seek products with natural, pure ingredients.Many of Yield Growth’s beauty and wellness formulas contain hemp root oil madewith the company’s patent-pending extraction technology, and are designed to beinfused with cannabinoids, such as CBD and THC.
According to Wikipedia, the legalstatus of psilocybin mushrooms vary worldwide. In many countries, the substance is prohibited unless authorized forclinical trial or research purposes. In the meantime, consumers will have tolook towards non-psychedelic mushroom products for their wellness needs.
Moving forward, major supplementproducers/sellers Herbalife Nutrition Ltd. (NYSE:HLF) and Jamieson Wellness Inc. (TSX:JWEL)may very well have a small range of mushroom-based products in theirportfolios, 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 formulatohelp support the body’s immunesystem, while also increasing energy.
The Herbalife Nutrition Ltd.(NYSE:HLF) answer to Jamieson’s Mushroom Complex is its Formula 3 CellActivator product made from cordyceps, reishi, and shiitake mushrooms.
Somewhat enthusiastically, WalmartInc. (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 avariety of products including Lion’s Mane, MyCommunity, and Stamets 7, and theGenius Brand’s Genius Mushrooms line.
Now with the guidance and support ofThe Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF), One Up Pure Energy Inc. productswill likely be seen on a growing number of shelves. Currently, the companyprovides a trio of mushroom-based products, including Lion Mane Brain Boost,Cordyceps Power Up, and Reishi Relax formulas.
The healing properties of mushroomsare vast, powerful and real. The One Up line provides a healthy alternative tocaffeinated and sweetened energy products, all made with less than 10ingredients that are all natural, organically grown, and not produced in a lab.
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