Over the last few months, Denver, Oakland, and Santa Cruz just decriminalized the possession of products containing psilocybin or psilocin. Washington, D.C. could be next. Major institutions are even studying its use for the treatment of depression, addiction, and psychological disorders.
For example, 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.
A Johns Hopkins study also found that 80% of smokers quit after “one dose of psilocybin and research on 51 cancer patients showed the drug decreased anxiety and depression in 80% of those tested,” as reported by The Baltimore Sun. Reportedly, Johns Hopkins is also recruiting for studies that use psilocybin for those with early-stage Alzheimer’s, anorexia-nervosa, and major depression issues.
As excitement builds for the use of psilocybin mushrooms, it’s opening a range of opportunity for companies that have already established launching cannabis products including The Yield Growth Corp. (CSE:BOSS)(OTC:BOSQF), Cresco Labs Inc. (CSE:CL)(OTCQX:CRLBF), cbdMD Inc. (NYSE:YCBD), iAnthus Capital Holdings Inc. (CSE:IAN)(OTC:ITHUF), and GW Pharmaceuticals (NASDAQ:GWPH).
The Yield Growth Corp. (CSE:BOSS)(OTCQB:BOSQF) BREAKING NEWS: The Yield Growth Corp. subsidiary Flourish Mushroom Labs Inc. announces that it signed a non-binding letter of intent with Kingdom Brands Management Inc. on February 12, 2020. Per the LOI, Kingdom will pay $500,000 to Flourish in exchange for the rights to use and sub-license in the United States, The Yield Growth Corp.’s proprietary extraction technology for use exclusively with both medicinal and psychedelic mushrooms.
This extraction technology was invented by Yield Growth to extract compounds from the hemp root to manufacture hemp root oil, a key ingredient in many of The Yield Growth Corp.’s products. This invention is protected by the Patent Cooperation Treaty (PCT), a unified procedure for filing patent applications to protect inventions internationally. “The Yield Growth Corp. previously engaged a high-quality, accredited lab to identify and quantify targeted therapeutic compounds found in the hemp root. We successfully sequestered one of these compounds, Friedelin, at a higher concentration compared to other extraction methods, using our technology,” said Penny White, CEO of The Yield Growth Corp. and Flourish Mushroom Labs. “We are now licensing this technology for Flourish Mushroom Labs to aid in cell disruption of mushrooms in order to extract the therapeutic compounds more efficiently.”
Kingdom Brands Management Inc. leases a property in California which may be suitable to cultivate medicinal mushrooms and sell and use mushroom extracts for products. The company plans to position itself in the marketplace to serve the potential demand following impending legalization of psilocybin.
Major strides have been taken towards the decriminalization of psilocybin across the U.S., in states including Washington D.C, California, Colorado, Vermont, and Oregon. In California, the California Psilocybin Decriminalization Initiative, which envisions the implementation of a comprehensive, state-wide scheme authorizing and regulating the cultivation, processing, and distribution of psilocybin mushrooms, has the potential to be on the ballot for voters as soon as this fall. The LOI states that the $500,000 will be paid through the issuance of securities in Kingdom’s parent company, Kingdom Brands Inc., which is planning an initial public offering in 2020. Yield Growth previously acquired 18,000,000 shares in Kingdom Brands, which is approximately 15% of the company.
Other related developments from around the markets include:
Cresco Labs Inc. (CSE:CL)(OTCQX:CRLBF) announced that it has closed the previously announced acquisition of Hope Heal Health, Inc. after receiving regulatory approval for change in ownership granted by the Massachusetts Cannabis Control Commission. HHH holds licenses for cultivation, product manufacturing, and retail operations in Massachusetts, with the ability to obtain up to two more retail licenses in the state. HHH currently operates a cultivation and manufacturing facility in Fall River, Massachusetts, adjacent to its Fall River Dispensary. The close of Cresco’s acquisition coincides with the launch of recreational cannabis sales at the HHH dispensary. The license enables the Company to continue serving its existing medical-use customer base and begin serving the fast-growing adult-use market through the retail and wholesale distribution of Cresco’s house of brands. Massachusetts recorded nearly $450 million in the first year of cannabis sales, according to the CCC.
cbdMD Inc. (NYSE:YCBD) announced that their CBD PM and CBD Freeze products have been voted the winner of the prestigious 2020 Product of the Year award in the CBD Sleep Aid and CBD Topical categories, respectively. This is America’s largest consumer-voted award for product innovation, as 40,000 voters participated in an online study organized by independent research firm Kantar Media Group. cbdMD Chief Marketing Officer, Ken Cohn, accepted the award on behalf of the company during a special ceremony in New York City last night.
iAnthus Capital Holdings Inc. (CSE:IAN)(OTC:ITHUF) announced it has received approval to commence operations at its Pleasantville, NJ cultivation campus. MPX New Jersey, an affiliate of iAnthus, is the ninth Alternative Treatment Center (ATC) in the state to receive a cultivation permit. This marks the tenth state in iAnthus’ operational footprint. On February 3, 2020, the New Jersey Department of Health issued MPX New Jersey a permit to cultivate at the Company’s Pleasantville cultivation facility. The 33,000-square-foot facility, when fully built, will include an extraction lab and kitchen as well as cultivation. The facility is expandable to 83,000 square feet and the first harvest is expected in the second quarter of 2020.
GW Pharmaceuticals (NASDAQ:GWPH) will announce on February 25th, 2020 its financial results for the fourth quarter and year ending December 31st, 2019. GW will also host a conference call the same day at 4:30 p.m. ET. Conference call information will be provided in the financial results press release.