Flourish Mushroom Labs Enters into Definitive Agreement and Completes License of Mushroom Extraction Technology
Vancouver, British Columbia--(Newsfile Corp. - March 3, 2020) - The Yield Growth Corp. (CSE: BOSS) (OTCQB: BOSQF) (FSE: YG3) subsidiary Flourish Mushroom Labs Inc. announces that it has licensed to Kingdom Brands Inc. the U.S. rights to its mushroom extract manufacturing technology, which is protected by a U.S. provisional patent application (the "Technology").
Flourish Mushroom Labs enters into definitive agreement to license mushroom technology.
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The patent application covers the invention of a unique mushroom extract and a method of manufacturing the extract from mushrooms including psilocybe mexicana, and formulations and emulsions containing the mushroom extract. The mushroom extract may be in the form of an aqueous solution, or it may be a freeze or spray dried powder.
Yield Growth previously announced on February 13, 2020 that its subsidiary, Flourish Mushroom Labs, had entered into a non binding LOI whereby Kingdom Brands agreed to pay CAD $500,000 to Flourish in exchange for the rights to use and sub-license and further develop the Technology in the United States for use with both medicinal and psychedelic mushrooms. The parties entered into a definitive agreement on February 21, 2020 for the license and the payment of $500,000 through the issuance of stock in Kingdom Brands, which is now complete, and Kingdom has acquired the U.S. rights to the Technology.
Kingdom Brands' subsidiary leases a property in California which may be suitable to cultivate medicinal mushrooms and to manufacture mushroom extract. The company plans to position itself in the marketplace to serve the potential demand that may follow the potential legalization of psilocybin.
Major strides have been taken towards the decriminalization of psilocybin mushrooms in 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 psilocybin mushrooms, has the potential to be on the state ballot in November 2020.
Kingdom Brands completed payment of $500,000 to Flourish through the issuance of 5,000,000 shares in exchange for the rights to use and sub-license the Technology in the United States. Yield Growth, through its subsidiaries, currently owns approximately 19% of Kingdom Brands and provides incubation services to Kingdom Brands through an operating agreement. Kingdom Brands has recently signed an engagement letter with a Canadian investment dealer as agent, on a best efforts basis, to an initial public offering (the "IPO") to raise between $2,000,000 and $4,000,000 in Canada and list on a Canadian stock exchange. The completion of the IPO is subject to due diligence, regulatory approval and other conditions.
About Flourish Mushroom Labs Inc.
Flourish Mushroom Labs aims to legally and safely commercialize psilocybin (magic) mushrooms and improve life by offering high-quality medicinal mushroom infused products. Flourish Mushroom Labs is conducting research into potential therapeutic benefits of compounds found in magic mushrooms. It has filed U.S. patent applications for its extraction technology and for certain therapeutic uses of psilocybin and magic magic mushrooms. Flourish Mushroom Labs is a majority owned subsidiary of The Yield Growth Corp.
About The Yield Growth Corp.
The Yield Growth Corp. is a health and beauty consumer packaged goods company selling plant-based products. It has over 200 proprietary beauty, wellness, edibles and beverage formulas at various stages of commercialization. Its products are sold through e-commerce worldwide and in retail stores in 3 countries with distribution agreements in place for 12 more countries. It conducts research for plant-based therapeutics and has filed 15 patent applications in what the Global Wellness Institute reports is a $4.2 trillion-dollar global wellness market. It owns the skin care brand Urban Juve, which has been featured in UK Vogue and Elle Canada, and it owns cannabis brands Wright & Well and Jack n Jane. Its majority owned subsidiary Flourish Mushroom Labs is launching a line of medicinal mushroom products and developing intellectual property and assets in the emerging market of psychedelic medicine. The Yield Growth management team has deep experience with global brands including Johnson & Johnson, Procter & Gamble, Skechers and Aritzia. Yield Growth earns revenue through multiple streams including licensing, services and product sales.
Investor Relations Contacts:
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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.
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