The Yield Growth Corp (CSE: BOSS) is newly focused on the mushroom business – both in terms of edibles as well as psychoactive medicine. The firm entered into an agreement to acquire a stake in Absolem Health Corp, a firm that is in the process of acquiring One Up Pure Energy Inc, an edible mushroom firm.
One Up Pure Energy currently manufactures what it calls “mushroom power pellets” – a healthy ready to eat snack that is derived from mushroom extracts. The firm is banking on the mushroom sector to continue to expand as the popularity of mushrooms for medicinal properties continues to rise.
Yield Growth intends to add to its cannabis wellness assets through acquisitions in companies like Absolem. Edible Mushrooms may experience hyper-growth as the movement to decriminalize psilocybin (magic mushrooms) grows, similar to how the popularity of hemp has grown with the legalization of cannabis.
Penny White, CEO of Yield Growth Corp
Yield Growth indicates that the firm is making the investment into Absolem as a means of entering the legal mushroom market. It then intends to use its interest to potentially align with research and clinical trials of psilocybin (magic mushrooms). Absolem is the first investment within the space for Yield Growth, who intends to use the investment as a means to launch deeper into the legal psilocybin space.
The 30% stake in Absolem was acquired for a total investment of $63,000 at a price per share of $0.02. Yield Growth will also be providing certain advisory services to Absolem in conjunction with the investment.
Yield Growth Corp isn’t the first Canadian listed firm to signal a potential entrance to the psilocybin mushroom space. TSX Venture listed Roadman Investments recently announced its entrance, followed by the establishment of one of the first conference in the space which is to take place early next year. The sector is considered among many cannabis investors to be the next hit segment as cannabis firms continue to see their equity price fall.
The Yield Growth Corp is currently trading at $0.28.
Information for this briefing was found via Sedar and The Yield Growth Corp. The author has no securities or affiliations related to the discussed organizations. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
