The Yield Growth Corp. (CSE: BOSS) (OTCQB: BOSQF) (FSE: YG3) announces its subsidiary Flourish Mushroom Labs Inc. has entered into an agreement to acquire approximately 18% of the outstanding stock of Translational Life Sciences Inc. (“TLS”).
Flourish Mushroom Labs
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TLS aims to develop proprietary formulations using restricted substances to focus on unmet medical needs in opioid dependence, psychotic illness, pain management and traumatic brain injury, including concussion. The company also offers services to design and oversee clinical trials of restricted substances such as psilocybin based formulations for third parties. It’s team is comprised of physicians and scientists who are recognized thought leaders in the fields of Neurology, Pharmacology, Pain Management, Addiction and Biochemistry and have significant experience in the clinical application of cannabinoid compounds.
The company’s medical team includes William Honer and Caroline MacCallum and Dr. William Panenka, MD, MSc, FRCPC (Neurology and Psychiatry). The founder of TLS, Dr. Panenka, is a dually boarded Neurologist and Psychiatrist and Canadian Institute of Health Research funded academic faculty member at the University of British Columbia. He did a post doctoral fellowship at UBC and Harvard University. He maintains an internationally recognized research program in brain injury, mental health and addictions. Dr. Caroline MacCallum is the Chief Medical Officer of TLS. She is a pharmacist and internal medicine physician with deep expertise in complex pain and medical cannabis. She is a medical director of a Vancouver based private cannabis clinic and an internationally sought after speaker and world recognized leader in cannabis education, policy, clinical guideline development and research. Dr. William G. Honer is a key scientist at TLS and an Internationally recognized translational scientist and physician. He is a Psychiatrist and the previous Head of Department at UBC. He is Fellowship trained at Columbia University and the Albert Einstein College of Medicine. Has published over 300 peer-reviewed manuscripts including primary clinical trial authorship works in journals such as the New England Journal of Medicine.
The terms of the binding letter of intent are as follows:
Yield Growth subsidiary Flourish shall issue 15,000,000 units of Flourish, consisting of 15,000,000 shares and 15,000,000 units to acquire additional Flourish shares at $0.50 per share, and in exchange Flourish shall acquire approximately 18% of the TLS stock, at a deemed cost of $750,000.
The transaction assumes a post-closing valuation of Flourish of approximately $7,000,000.
No shares or warrants in Yield Growth shall be issued as part of the transaction, although Yield Growth’s ownership in Flourish shall be diluted down to approximately 82% at closing and down to 70% on a fully diluted basis.
“I’m overjoyed that Flourish can provide a leading investment into a company with such enormous potential,” says Yield Growth and Flourish CEO Penny White. “We will fully support TLS in its goal to develop over the counter products to prevent and treat opiate addiction, which is having devastating effects on individuals, families and communities across the globe.”
The Centers for Disease Control and Prevention estimates that the total “economic burden” of prescription opioid misuse alone in the United States is $78.5 billion a year, including the costs of healthcare, lost productivity, addiction treatment, and criminal justice involvement.
About Flourish Mushroom Labs Inc.
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 planning to build a psilocybin mushroom laboratory in Saint Vincent and the Grenadines and is 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. 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.
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