Champignon Brands Inc. (CSE: SHRM) (OTCQB: SHRMF) (FWB: 496) is a research-driven company specializing in the formulation and distribution of a suite of artisanal mushroom health supplements. Dedicated to revolutionizing conventional organic teas, coffees and other consumables with the infusion of a proprietary blend of artisanal mushrooms, Champignon’s expanding portfolio is crafted with the health-conscious consumer in mind.
Headquartered in Vancouver, British Columbia, Champignon’s team aims to promote the health and wellness benefits of functional mushrooms, which are used in a wide variety of health care and pharmaceutical products.
Champignon’s mushroom-derived consumer packaged goods (CPGs) portfolio includes its flagship brand, Vitality Superteas. Each carefully curated Vitality Supertea formulation was developed with the intent of helping individuals enhance and enrich their wellbeing one cup of mushroom-infused tea at a time.
Also in the portfolio are Nourish Force Supertea, a blend of Reishi Ryobus Tea Mix; Mighty Recharge Supertea, created with Lions Mane Tropical Green Ginseng Tea Mix; and Brain Enhance Supertea, a blend of Cordycep Hibiscus and Berries Tea Mix – all of which are formulated with organic ingredients and chosen for their ability to provide unique health and performance benefits.
Champignon’s flagship e-commerce store, VitalitySuperTeas.com, takes advantage of the burgeoning craft mushroom vertical space with a selection of mushroom-infused teas and accessories.
Functional Mushroom Market
Demand for consumer products infused with the nutritional and bioactive benefits of mushrooms is fueling a global market projected to reach $34.3 billion by 2024, growing at a compound annual growth rate of 8.04% from 2019-2024 (ResearchandMarkets), with Europe seen as the fastest growth leader.
According to the market study, in highest demand are products infused with Reishi – a traditional Chinese medicine also known as the “Elixer of Life” and “Mushroom of Immortality – Lions Mane and Cordyceps, followed by other types of medicinal mushrooms.
Advances in Legalization
Legalization of psychedelics for use in medicine is gaining momentum across the United States. San Francisco, California, and Oakland and Santa Cruz, California, have decriminalized the use of psilocybin, the psychedelic molecule found in various mushrooms, while movements for legalization are gaining ground in Oregon and Iowa, among others. Decriminalize California recently teamed up with the Beckley Foundation to replicate Oakland’s success of decriminalization throughout the state of California.
An increasing number of researchers are turning their attention toward the study of psilocybin as a means to treat otherwise untreatable illnesses. The molecule’s ability to provide landmark treatment options for depression, post-traumatic stress disorder (PTSD), migraines and addiction is gaining widespread acceptance among medical professionals, unicorn investors and accredited institutions.
Historical data and new scientific studies suggest therapeutic benefits of psychedelics in many areas, including drug addiction, alcoholism, depression, migraines, smoking cessation and post-traumatic stress disorder (PTSD).
The market potential in these areas are significant. To reference just one of the above conditions, the mental health arena has been frequently neglected over the last 30 years, though new research is beginning to further reinforce that psychedelic compounds have the potential to produce more effective treatments than what is currently available.
According to the World Health Organization, 25% of the world’s populous will be afflicted by mental health and/or neurological disorders. Presently, approximately 450 million people currently suffer from such conditions, placing mental disorders among the leading causes of ill-health, productive loss and disability worldwide.
Additionally, PTSD affects approximately 2.2% of the U.S. population; 7.7 million people will have PTSD at some point in their lives. Recent published studies have demonstrated the safety and efficacy of certain psychedelics when administered in a medically supervised and monitored approach.
A renaissance in alternative medicines is emerging, and Champignon has set in motion its strategy to become a key player.
2020 Stealth IP Strategy
Champignon plans to biosynthesize psilocybin within the first three months of conducting laboratory experiments, with the objective of achieving optimized and scaled production of pharmaceutical-grade psilocybin for deployment in clinical settings. This strategy includes:
- Alternative medicine (psilocybin) IP aggregation
- Development of cGMP formulations of bioactive compounds extracted from plants and Fungi
- Drafting of benchmark SOPs (Standard Operating Procedures)
- Patient aggregation, focusing on veterans
Defining a New Asset Class: Psychedelic-Inspired Medicines
In the third quarter of 2020, Champignon – through clinical trials, a compelling IP portfolio and clinical pipeline and drug development platform – plans to advance its pursuit of treatments underpinned by psychedelic substances. This strategy is broken down into two ties:
- Non-Hallucinogenic Medicines
- Microdosing Psilocybin/LSD
- MDMA, commonly known as ecstasy
- Hallucinogenic Medicines
- Psilocybin high dose
- LSD high dose
Companies worldwide are beginning to incorporate functional mushrooms into their product offerings, taking advantage of growing consumer awareness of known health benefits of the ingredients found in mushrooms.
Champignon in November 2019 entered into a distribution partnership with Eurolife Brands Inc. (CSE: EURO), a leading global markets cannabis brand empowering the medical, recreational and CPG cannabis industry worldwide through a data-driven CBD marketplace supported by exclusive and unbiased physician-backed cannabis education and detailed consumer analytics. Under the agreement, Champignon’s branded products are integrated into Eurolife’s e-commerce platform, along with potential distribution opportunities in select brick-and-mortar retail locations in Europe.
Champignon also has an R&D/production formulation agreement with Drip Coffee Social Ltd., located in Nanaimo, British Columbia, which calls for the infusion of Champignon’s proprietary mushroom extract blend into a suite of cold brew coffee products and signature in-house formulations.
Gareth Birdsall, CEO, Corporate Secretary and Director
Gareth Birdsall has more than seven years of experience working in diverse agricultural roles such as the cultivation of various fungi, in particular Cordycepes, Reishi, Lions Mane and Chaga. He is an attendee of the British Columbia Institute of Technology, studying marketing management and finance.
Steven Brohman, CPA, CFO
Steven Brohman has more than 10 years of experience working in a variety of roles with public and private companies. He has had extensive training in the audit of publicly traded companies on the TXS, TSX Venture Exchange and OTC markets, and serves as CFO and director of various public and private companies. Brohman has a bachelor’s degree of business administration and obtained his Chartered Professional Accountant designation.
Jerry Habuda, Director
Jerry Habuda brings to Champignon over 35 years of expertise in law enforcement and specialized units. From 1977 to 2012, he served as a police officer with the Toronto Police Department. During his tenure, he was assigned to the Major Crimes Unit, investigating robberies and home invasions. He was assigned to patrol the Toronto Community Housing projects at Jane/Finch to control drug trafficking and gun violence. Habuda was with the Warrant Unit where he tracked down and arrested wanted criminals. From 1993-1997, he was assigned to the Northwest Drug Squad on undercover and surveillance work, executing narcotic search warrants. Between 2002 and 2004, Habuda headed the Street Violence Task Force, a special unit designed to curb gun and drug violence that was terrorizing the city at the time.
- Functional mushrooms are used in a wide variety of health care and pharmaceutical products, while applications are growing in the cosmetics and food and beverage sectors
- Market demand is led by a significant shift in lifestyle and dietary habits of consumers seeking healthier alternatives
- Globally, the functional mushroom market is projected to reach $34.3 billion by 2024, growing at a CAGR of 8.04% during the forecast period (2019-2024)
- Mushrooms are a leading source of the antioxidant nutrient, selenium, which protects body cells from damage that might lead to chronic diseases and help to strengthen the immune system
- Legalization of psilocybin, the psychedelic molecule found in various mushrooms, is gaining momentum, driven by breakthrough’s in medical research on PTSD, depression and opioid withdrawal treatments
- The sector has attracted major investment from unicorn investors Peter Thiel and Kevin O’Leary, as well as thought leaders Tim Ferriss and ex-Canopy Growth founder Bruce Linton
- Will deploy an IP aggregation strategy focused on alternative medicine, the formulation bioactive compounds extracted from plants and fungi, the synthetization of certain plant extracts, as well as plant and fungi laboratory testing protocols