NewLeaf Brands Acquires Mushroom Firm Incorporated By COO A Month Ago
NewLeaf Brands (CSE: NLB) is pivoting from the cannabis space to the psychedelics space. The company this morning clarified the transaction that it is undertaking with that of Colorado-based Mydecine Group whom focuses on mushroom and fungi compounds.
Little information was provided about Mydecine Group as a whole, aside from indicating that they focus on the compounds in many mushroom and fungi, and that they are engaged in using these compounds for their “vast medicinal, health and wellness capabilities.” The company has three divisions,Mydecine Farms, Mydecine Wellness, and Mydecine Labs, which evidently aims to “cultivation, processing, product development, and research and development of the many beneficial and exciting compounds that are found in various strains of mushroom and fungi from all around the world.“
However, it is unclear if Mydecine owns any unique intellectual property or formulations that utilize mushroom or fungi compounds. The only data found related to the firm via a quick Google search was related to the NewLeaf press releases on the acquisition, and the company does not appear to have a website. The only firm with a related name registered as a corporation in Colorado appears to be “Mydecine Solutions LLC” which was registered on March 23, 2020.
Even more interesting, is that the company was registered by a Michael Connolly – whom appears to be a director and the CCO of NewLeaf itself.
The below profile of a Michael Connolly comes straight from the NewLeaf Brands website.
Finally, as if this isn’t enough of a red flag, note the address listed above on Mydecine’s articles of organization, and the address listed below on NewLeaf’s own website related to the address of their firm.
The transaction will see NewLeaf acquired Mydecine through the issuance of 17,000,000 common shares of the company, which will represent 30.9% of the total outstanding shares of NewLeaf. Based on a per share price of $0.071, the transaction is valued at approximately $1.2 million based on the price of the equity at the time of closing.
NewLeaf last traded at $0.12 on the CSE.
Information for this briefing was found via Sedar, The State of Colorado, and NewLeaf Brands. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
Ha! Classic shrooms. All of these deals are fake when you really take a hard look.