PALM BEACH, Florida, Nov. 7, 2019 /PRNewswire/ -- This has been a big year for psilocybin mushrooms, with Denver and Oakland legalizing its use. While the federal government still classifies it as dangerous, clinical evidence reveals that it does hold medicinal and therapeutic properties for the treatment of depression, alcohol addiction and many psychological disorders. Experts at Johns Hopkins recently launched the Center for Psychedelic and Consciousness Research, for example. The U.S. FDA granted "breakthrough status" to COMPASS Pathways' psilocybin-assisted therapy just last year, which allows the FDA to assist in the development of a promising drug to treat serious illnesses. Even researchers at New York University found psilocybin mushrooms caused a "rapid and sustained" reduction in anxiety and depression in patients with cancer, as reported by the Financial Post. As excitement builds, it's opening a range of opportunity for companies that have already established launching cannabis products including The Yield Growth Corp. /zigman2/quotes/202014329/delayed CA:BOSS -2.08% (otcqb:BOSQF), The Supreme Cannabis Company Inc. /zigman2/quotes/209645734/delayed CA:FIRE +3.03% (otcqx:SPRWF), Cresco Labs Inc. /zigman2/quotes/205276242/delayed CA:CL -1.19% (otcqx:CRLBF), Tilray Inc. /zigman2/quotes/209129655/composite TLRY -0.29% , and Cronos Group Inc. /zigman2/quotes/206842762/composite CRON -0.68% .
The Yield Growth Corp. /zigman2/quotes/202014329/delayed CA:BOSS -2.08% (otcqb:BOSQF) BREAKING NEWS : The Yield Growth Corp. just announced that on November 6, 2019 Yield Growth closed an agreement to license 126 product formulas to subsidiary Flourish Mushroom Labs. As part of the closing, Flourish Mushroom Labs made the first payment of $1,800,000 due under the license agreement with the issuance to Yield Growth of 90,000,000 common shares of Flourish Mushroom Labs issued at a deemed value of $0.02 per share. The shares are subject to escrow provisions pursuant to NP 46-201 and will be released as follows: 10% on the completion of an initial public offering by Flourish Mushroom Labs, and the balance of shares released over a 36-month term after an initial public offering. The Yield Growth licensed formulas may be used in foods, beverages, personal care, skin care, cosmetic and other wellness products that are infused with functional mushrooms or psilocin or psilocybin (magic mushrooms) or any combination thereof. In consideration for the non-exclusive 50-year license, Flourish Mushroom Labs has agreed to pay $3,000,000 to Yield Growth. The first payment of $1,800,000 has been made. The remaining sum of $1,200,000 may be paid in cash over 24 months, but if Flourish Mushroom Labs is successful in listing its stock on a Canadian stock exchange within 6 months, then $200,000 shall be deducted from the purchase price, and if a listing is achieved between 6-12 months, then $400,000 shall be deducted from the purchase price.
Other cannabis-related developments from around the markets include:
The Supreme Cannabis Company Inc. /zigman2/quotes/209645734/delayed CA:FIRE +3.03% (otcqx:SPRWF) just announced that it has parted ways with its Chief Advocacy Officer, John Fowler. The Company wishes to thank Mr. Fowler for his years of dedication and strong contribution to Supreme Cannabis and his passion for the cannabis plant. Mr. Fowler was one of the original founders of Supreme Cannabis' flagship brand, 7ACRES, and is a strong believer in the cultivation of high-end cannabis. As a pioneer and passionate advocate for legalization, the Company knows Mr. Fowler will continue to be a strong contributor to the cannabis community. "We all wish John the best in his next endeavor and thank him for his commitment to the Company for the last four years. John recognized the value of high-quality cannabis at scale and was instrumental in the creation of 7ACRES," said Navdeep Dhaliwal, CEO. "The Company and its strong management team is excited to continue its path to growth as a leader in differentiated cannabis brands and premium cultivation at scale, while exporting our team's vast knowledge and experience globally."
Cresco Labs Inc. /zigman2/quotes/205276242/delayed CA:CL -1.19% (otcqx:CRLBF) announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, in respect to Cresco Labs' pending acquisition of Tryke Companies. The waiting period, during which the Transaction could not be completed, expired without the issuance of a so-called "second request" by the United States Department of Justice Antitrust Division (the "DOJ"). The Transaction is anticipated to close during the first half of 2020 and is subject to certain closing conditions, including the approval from the States of Nevada, Arizona and Utah. "At Cresco, we embrace compliance. Obtaining this milestone is indicative of the hard work Cresco and other companies in the industry have been doing to work with regulators," said Charlie Bachtell, Cresco Labs CEO and Co-founder. Charlie Bachtell added, "This transaction represents the final major piece of our targeted footprint. Upon the closing of the Transaction, Cresco will have cultivation, processing, and retail assets in strategic and culturally significant legal states representing 71% of the U.S. addressable cannabis market. The Company's focus on distribution and brand building will enable it to continue to capture solid market share in each of these key states as legal markets continue to develop."
Tilray Inc. /zigman2/quotes/209129655/composite TLRY -0.29% announced it will report results for the third quarter ended September 30, 2019 on Tuesday, November 12, 2019 after market close. The Company will host a conference call to discuss these results at 5:00 p.m. ET. Investors interested in participating in the live call can dial 877-489-6528 from the U.S. and 629-228-0736 internationally. A telephone replay will be available approximately two hours after the call concludes through Tuesday, November 26, 2019, by dialing 855-859-2056 from the U.S., or 404-537-3406 from international locations.
Cronos Group Inc. /zigman2/quotes/206842762/composite CRON -0.68% noted the separately announced closing of the AUD$20 million initial public offering of Cronos Australia Limited. Under the offering, Cronos Australia issued 40 million new shares at an offering price of AUD$0.50 per share. Cronos Australia expects to start trading on the Australian Securities Exchange on a deferred settlement basis on November 7, 2019.
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