Yield Growth announces its subsidiary Flourish Mushroom Labs Inc. entered into a binding letter of intent with Acres Agricultural Canada Corp.
The Yield Growth Corp. (CSE:BOSS, OTCQB:BOSQF, FSE:YG3) announces its subsidiary Flourish Mushroom Labs Inc. entered into a binding letter of intent on January 4, 2020 with Acres Agricultural Canada Corp. (“Acres”) to jointly form a company in Saint Vincent and the Grenadines, Acres Flourish Labs (SVG) Ltd. (“AF Labs”), to build a laboratory for the cultivation of psilocybin mushrooms and for research and development into compounds and therapeutic use of psychedelic mushrooms.
Saint Vincent and the Grenadines
The agreement contemplates that the proposed research and development of psilocybin for therapeutic use is within the purview of St. Vincent’s Plant Breeders’ Protection Bill, 2019 and the wider establishment of a viable and sustainable modern medicinal industry in St. Vincent and the Grenadines (“St. Vincent”). The proposing parties are aware of and keenly interested in the conducive climatic conditions as exist in Saint Vincent for the controlled cultivation of psilocybin mushrooms, coupled with the existing offshore medical academic programs which can create an ideal environment for the advancement of the necessary scientific studies in Saint Vincent.
“Acres Agricultural is very pleased to announce this collaboration with Yield Growth Corp. and Flourish Mushroom Labs Inc,” says Patrick Power, CEO of Acres. “Through AF Labs we aim to further the global research and associated medicinal use of psilocybin, while contributing to the development of a new medical frontier for the country of St. Vincent and the Grenadines.”
“We are very excited to be the first publicly traded company to announce a legal path to cultivate and research psychedelic mushrooms,” says Yield Growth and Flourish CEO Penny White. “There is a renaissance of psychedelic medicine for which investor interest could go viral at any time. We are planning to enter this space with first mover advantage to deliver value to our shareholders.”
Terms of the Agreement
The parties have agreed that AF Labs will build a laboratory in Saint Vincent for the cultivation of psilocybe semilanceata (a polyphyletic mushroom), the extraction of psilocybin and the research and development of the strains, compounds and therapeutic uses of the mushrooms. The initial capital structure of AF Labs shall be 50% owned by Acres and 50% owned by Flourish. Flourish shall contribute $200,000 for initial operating capital as a secured loan with an annual interest rate of 8%. Additional capital for AF Labs will be funded equally by Acres and Flourish or by capital raises as approved by the directors of AF Labs. Each of Acres and Flourish shall appoint one director to the board of AF Labs and one director who is approved by both parties shall be appointed for a total of 3 directors. The parties shall negotiate to enter into a final definitive agreement no later than February 10, 2020 and close the transaction prior to March 1, 2020. Closing of the agreement shall be subject to several condition precedents, including approval by the government of St. Vincent and completion of due diligence by both parties. AF Labs has submitted a proposal to the SVG government for the legal establishment of the business, which has been approved. Flourish has agreed to pay a finder’s fee to a non-related party of 100,000 shares in Yield Growth, and 200,000 options in Flourish at $0.10 per share.
Pursuant to a separate contract, Acres shall act as consultant to Yield Growth for the development and cultivation of proprietary cannabis strains to be grown in SVG. The initial compensation to Acres shall be 200,000 stock options in Yield Growth, with an initial four month hold, granted at market in accordance with CSE rules.
About Acres Agricultural Canada Corp.
Acres Agricultural Canada Corp., is established in Saint Vincent and the Grenadines through its wholly owned subsidiary Acres Agricultural (SVG) Ltd., for the cultivation, extraction and export of cannabis and cannabis-based manufactured products for medicinal purposes.
About Flourish Mushroom Labs Inc.
Created and incubated by the team at The Yield Growth Corp., Flourish Mushroom Labs aims to be a leader in the fast-growing functional foods market-and improve life by offering high-quality mushroom-infused products. Flourish Mushroom Labs is also conducting research into potentially therapeutic benefits of compounds found in psychedelic 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 Mushroom Labs is a majority owned subsidiary of The Yield Growth Corp.
About The Yield Growth Corp.
The Yield Growth Corp. is developing cannabis and edible mushroom products and conducting 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, M·A·C Cosmetics, 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 and plan to launch a CBD from hemp topicals line in California in 2020. 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.