Kingdom Brands Licenses Psychedelic Mushroom Technology from Flourish Mushroom Labs
Vancouver, British Columbia--(Newsfile Corp. - February 13, 2020) - The Yield Growth Corp. (CSE: BOSS) (OTCQB: BOSQF) (FSE: YG3) subsidiary Flourish Mushroom Labs Inc. ("Flourish") announces that it signed a non binding letter of intent ("LOI") with Kingdom Brands Management Inc. ("Kingdom") on February 12, 2020.
Kingdom Brands Management Inc.
To view an enhanced version of this graphic, please visit:
Per the LOI, Kingdom will pay $500,000 to Flourish in exchange for the rights to use and sub-license in the United States, Yield Growth's proprietary extraction technology for use exclusively with both medicinal and psychedelic mushrooms and to further develop the technology.
This extraction technology was invented by Yield Growth to extract compounds from the hemp root to manufacture hemp root oil, a key ingredient in many of The Yield Growth Corp.'s products. This invention is protected by the Patent Cooperation Treaty (PCT), a unified procedure for filing patent applications to protect inventions internationally.
"The Yield Growth Corp. previously engaged a high-quality, accredited lab to identify and quantify targeted therapeutic compounds found in the hemp root. We successfully sequestered one of these compounds, Friedelin, at a higher concentration compared to other extraction methods, using our technology," said Penny White, CEO of The Yield Growth Corp. and Flourish Mushroom Labs. "We are now licensing this technology for Flourish Mushroom Labs to aid in cell disruption of mushrooms in order to extract the therapeutic compounds more efficiently."
Kingdom Brand Management Inc. leases a property in California which may be suitable to cultivate medicinal mushrooms and sell and use mushroom extracts for products. The company plans to position itself in the marketplace to serve the potential demand following impending legalization of psilocybin.
Major strides have been taken towards the decriminalization of psilocybin across the U.S., in states including Washington D.C, California, Colorado, Vermont and Oregon. In California, the California Psilocybin Decriminalization Initiative, which envisions the implementation of a comprehensive, state-wide scheme authorizing and regulating the cultivation, processing and distribution of pPsilocybin mMushrooms, has the potential to be on the ballot for voters as soon as this fall.
The LOI states that the $500,000 will be paid through the issuance of securities in Kingdom's parent company, Kingdom Brands Inc., which is planning an initial public offering in 2020. Yield Growth previously acquired 18,000,000 shares in Kingdom Brands, which is approximately 15% of the company.
About Flourish Mushroom Labs Inc.
Flourish Mushroom Labs aims to legally and safely commercialize psilocybin (magic) mushrooms. Flourish Mushroom Labs is planning to build a psilocybin mushroom laboratory in St. Vincent and the Grenadines and is conducting research into potential therapeutic benefits of compounds found in magic mushrooms. It has filed a U.S. patent application for the use of psilocybin to aid in weight loss and treat obesity, diabetes and to help prevent heart disease. Flourish also plans to be a leader in the fast-growing medicinal mushrooms market-and improve life by offering high-quality mushroom-infused products. Flourish Mushroom Labs is a majority owned subsidiary of The Yield Growth Corp.
About The Yield Growth Corp.
The Yield Growth Corp. develops and manufactures plant-based products and conducts research for plant-based therapeutics in what the Global Wellness Institute reports is a $4.2 trillion-dollar global wellness market. It owns the cannabis wellness brands Urban Juve, Wright & Well and Jack n Jane. The Yield Growth management team has deep experience with global brands including Johnson & Johnson, Procter & Gamble, Skechers and Aritzia. Its all natural hemp skincare brand, Urban Juve, has signed agreements for distribution in Canada, Colombia, Brazil, Costa Rica, Panama, Argentina, El Salvador, Ecuador, Peru, Greece, Cyprus, Bulgaria, Romania and Serbia. Yield Growth's Wright & Well brands have manufactured a THC/CBD line of topical and edible products in Oregon. Through its subsidiaries, Yield Growth has over 200 proprietary beauty, wellness, edibles and beverage formulas for commercialization. It has filed 13 patents to protect its extraction method and other intellectual property. Yield Growth earns revenue through multiple streams including licensing, services and product sales.
Investor Relations Contacts:
Penny White, President & CEO
Kristina Pillon, Investor Relations
The Canadian Securities Exchange has not reviewed, approved or disapproved the contents of this news release.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking information and statements (collectively, "forward looking statements") under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates, forecasts, beliefs and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: risks related to the development, testing, licensing, intellectual property protection, the potential for not acquiring any rights as a result of the patent application and any products making use of the intellectual property may be ineffective or the company may be unsuccessful in commercializing them; and other approvals will be required before commercial exploitation of the intellectual property can happen. The laws around cultivating, selling and using psychedelic mushrooms would need to change in most jurisdictions in order for the use of psychedelic products to be legal and sale of, and demand for, Urban Juve, Wright & Well, Flourish Mushroom Labs, Jack n Jane and UJ Beverages products, general business, economic, competitive, political and social uncertainties, delay or failure to receive board or regulatory approvals where applicable, and the state of the capital markets. Yield Growth cautions readers not to place undue reliance on forward-looking statements provided by Yield Growth, as such forward-looking statements are not a guarantee of future results or performance and actual results may differ materially. The forward-looking statements contained in this press release are made as of the date of this press release, and Yield Growth expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/52391