(Image via Champignon Brands.)
We are about to experience a renaissance in alternative medicine:
An evolution in the regulatory framework around effective psychedelics has had major implications for anyone advancing mushroom related IP, be it for functional foods or medicine.
A Company with a unique strategy to effectively capitalize on this movement is Champignon Brands Inc. (CSE: SHRM, Forum), who just completed its initial public offering (IPO) in late February 2020 and is now trading on the public market. Already involved in the functional food side of the business with its infused tea and coffee brands, this Company is on the verge of executing a significant shift as it deepens its research and development into the medicinal world of mushrooms.
Promoting holistic health and wellness through a healthy diet, Champignon Brands is a distributor of artisanal, medicinal mushrooms and related consumer packaged goods (CPG). As it develops its product base, the Company is also conducting research into the uses, methods and products that improve life in the global wellness market, which has been projected by the Global Wellness Institute to be valued at $4.2 trillion (USD).
The functional food market:
Within global wellness, the key market Champignon Brands is looking to penetrate is the functional foods market. An April 2019 report by market intelligence firm Mordor Intelligence estimated that the global functional food market is forecast to reach $34.3 billion by 2024, growing at a compound annualized growth rate (CAGR) of 8.04%.
Even deeper, there is the global functional mushroom market, where Champignon is banking on to help its business thrive. This pending market is quickly becoming known as the “shroom boom” and a few companies are emerging to capitalize on these new offerings with Champignon at the forefront of artisanal and medicinal products with a wide field of implications. In 2018, the market was valued at $5.8 billion, according to Avinash Desamangalam, the lead researcher for the food and agriculture department at Mordor Intelligence, and it is expected to grow 6.4% annually to 2024.
However, this is only part of the story. A recent study performed by the Beckley / Imperial Research Programme has provided clinical evidence for the efficacy of psilocybin-assisted psychotherapy to treat depression, even in cases where all other treatments have failed. According to the Psychedelic Science Review, the global market for conventional antidepressants alone was valued at $13.7 billion in 2016, and is projected to grow to $15.9 billion by 2023, representing a CAGR of 2.1%. These figures include treatments for major depressive disorder (MDD), obsessive-compulsive disorder and anxiety.
Psychedelics as transformative medicine:
Also known as “magic mushrooms” or “psychedelic mushrooms”, a psilocybin mushroom is one of a polyphyletic group of fungi that contain psilocybin and psilocin.
In many jurisdictions around the world, magic mushrooms remain illegal, but a softening regulatory stance in several key areas may be in the works which would allow potentially therapeutic compounds to help millions of people who are in dire need of alternatives to today's prescription drugs.
Combining historical data with new scientific studies, it has been suggested that there are many therapeutic benefits of psychedelics that could help treat several areas:
No longer a fringe topic, psychedelics are quickly becoming a viable option, not only as a potential breakthrough therapeutic tool for mental and physical health, but also a massive market for investment opportunity. Here is what the media has been saying about it recently:
“Psychedelic Events Are Going Mainstream, Where The Much-Maligned Mushroom Industry Focuses On Mental Health” - Forbes, Jan 2020.
“Recent studies are finding that drugs such as LSD and psilocybin can help to alleviate depression, anxiety and addiction.” - Wall Street Journal, May 2018.
“Cities Across the U.S. Just Beginning to Legalize Psychedelic Mushrooms.” - Baystreet, Jan 2020.
There is more work to be done and now that Champignon has just joined the market, it can bring its engagement in specializing formulations of mushroom-infused CPGs that promote holistic health and wellness to a whole new level.
Great tasting with enormous margins:
Everything that Champignon Brands crafts is made with the health-conscious consumer in mind. Its product lines are simply tasty and healthy, for those looking for something different from the conventional hot and cold beverages on the shelves.
Champignon’s mushroom-derived CPG portfolio includes its flagship brand, Vitality Superteas. These teas are formulated with the goal of “revolutionizing conventional organic tea through the infusion of a proprietary blend of artisanal mushrooms with medicinal properties.”
(Image via Champignon Brands.)
“Health” is an every-day mindset and this type of artesian mushroom blend can even help excite mental stamina, focus and creativity. Perfect for either a relaxing day, or that inevitable stressful middle-of-the-day drag on productivity at work, when the umpteenth cup of regular coffee just won’t do.
The Company is carving out its own niche market share, primarily through boutique coffee shops such as Drip Coffee’s flagship brick and mortar location based in Nanaimo, BC, as well as health and wellness locations and its own e-commerce infrastructure direct to consumer. A completely intuitive automated system for users, the Champignon online shop has been fulfilling orders for products to buyers in Australia, Vietnam, the US and throughout Canada.
(Image via Champignon Brands.)
The plan is to encompass a variety of product lines that combine the most powerful superfoods and health supplements known throughout the world. By adding this mushroom-infused coffee to the current Champignon product line, the Company can compete on an even broader field in this industry and expand its foothold farther on this previously untapped market.
Now that the Company has proven it can supply the market with its mushroom-infused products it is also moving into serious business dealings, both on the distribution side but also advancing its R&D capabilities.
EuroLife Brands Partnership:
In March 2020, Champignon announced an exciting partnership with leading global markets cannabis brand, EuroLife Brands (CSE: EURO, OTC Pink: EURPF). Under this exclusive preferred distributor agreement, EuroLife has been granted exclusive preferred distributor status of Champignon’s portfolio for the jurisdictions of Germany, Switzerland, and the UK in addition to non-exclusive distribution rights in various other locales globally.
This international business development campaign will be a major step to bring Champignon Brands’ portfolio of mushroom-derived CPG offerings including their flagship brand, Vitality Superteas to markets in Europe, South America and elsewhere.
A Fresh IPO for the mushroom market:
The Company just successfully completed its brokered-sponsored IPO of 18,916,667 common Champignon shares at $0.15 per share for total gross proceeds of $2,837,500.05. The Proceeds of which will fund its proposed operational expansion and improvements, marketing program, product development as well as product line expansion and for working capital purposes.
Leading by example:
In looking for evidence that psychedelic medicine is transitioning into mainstream acceptance, you need look no further than the guidance from its own board of directors and their experience.
Director Jerry Habuda served as a police officer with the Toronto Police Department for 35 years, where he was assigned with the Major Crimes Unit, as well as the Northwest Drug Squad on undercover and surveillance work, executing narcotic search warrants.
Director Joseph Perino has 30 years of experience with the Toronto Police Service and was the Professor Coordinator of the Police Foundations Program and served as Staff Sergeant of the Community Response Unit.
Director Matthew Fish is a practicing securities and corporate litigation lawyer focused on the technology and resource sectors. He has experience with public companies, capital markets, as well as merges and acquisitions, along with other elements that are essential to operating a company in the cannabis industry.
The Company is in the midst of appointing members to its advisory board who are experts in medicine, psychology, mycology and pharmacology to research the potential positive effects its medicinal mushroom formulations could have on those who suffer from mental health disorders such as depression, PTSD as well as substance and alcohol use disorders.
As it advances its biosynthesis R&D the team has also assembled a roster of health professional and food scientists.
(Image via Champignon Brands.)
Only the beginning:
Over the next year, you’re going to hear a lot more from Champignon Brands. The Company is moving to achieve its M&A milestone targets while also expanding its product suite. The EuroLife Brands partnership is just one example of how these products can gain traction in international markets, as M&A of its IP is the key to the future of the Company’s organic growth.
champignonbrands.com
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.