MONTREAL, June 17, 2021 / CNW / – The Good Shroom Co Inc. (the “Company” or “TGSC”) (TSXV: MUSH) is pleased to announce that its wholly owned subsidiary, Teonan Biomedical Inc. (“Teonan”) has received approval from Health Canada starts selling and distributing its beverages that Canada first cannabis-infused beverage line with functional mushroom extracts.
Teonan holds a microprocessing license granted by Health Canada under the Cannabis Act that enables it to manufacture and develop topical products, extracts and cannabis edible products, including beverages. Before Velada beverages could begin selling, Teonan was required to demonstrate that its end products and quality control procedures met strict Health Canada guidelines. Teonan’s microprocessing license has been changed by Health Canada, allowing the company to distribute Velada products nationwide through various retailers in the province, including Société Quebecoise du Cannabis (SQDC), the Canada largest cannabis dealer in the province. A microprocessing license has an annual processing limit of cannabis extract of 150,000,000 mg per year. With Health Canada’s limit of 10 mg THC per unit, this equates to up to 15,000,000 THC-containing units that can be sold annually. The company strategically opted for a micro-processing license rather than a standard processing license because of the high processing limit for cannabis and the lower costs associated with maintaining this type of license.
Velada is the first mushroom-based instant wellness drink in Canada which contains cannabinoids. The powdered beverage mixes are vegan, dairy-free, GMO-free, gluten-free and all contain 100 mg of functional mushroom extracts and a dose of 30 mg of CBD per serving. The company will also offer a low-THC version of the beverages with a CBD: THC ratio of 2: 1 for optimal potency with 4.5 mg of THC and 9 mg of CBD per serving to have an expanded and diverse offering that is appealing a greater variety of customers. Flavors available for distribution include hot chocolate, coffee, and golden milk latte. The company expects to add additional flavors and products to the Velada line of products that follow market reactions and new industry trends. This authorization to start sales also enables the company to terminate its contract with its sales agent Velvet Management Inc. Canada leading cannabis sales agency that represents the company across the board Canada.
“We have been waiting eagerly for this approval and are ready to move on,” said Eric Ronsse, the Chief Executive Officer of TGSC. “With relatively few established beverage suppliers and high market entry barriers, we expect that the quality of our product, the diversity of the range and the attractive price will enable us to gain market share and build a strong and loyal customer base. “In Canada, the cannabis-infused beverage market is valued at $ 529 millionme a year.
In connection with the receipt of the authorization, the company will sell 1,000,000 common shares to Dr. Scott Jardin, it is the Chief Financial Officer, under the terms of a performance share agreement (the “Agreement”) set forth in September 2020. Under the agreement, Mr. Scott will be entitled to 1,000,000 common shares upon receipt of all regulatory approvals and approvals required to market Velada products. Mr. Jardin may purchase additional tranches of common stock up to a maximum of 2,000,000 if the company achieves target sales of Velada products over the next 12 months. All shares issued under the Agreement are subject to a hold period of up to April 15, 2022, in addition to the escrow requirements of Directive 5.4 of the TSX Venture Exchange, which provides for a 36 month release from the year April 26, 2021 (For details on the agreement and the escrow clearance schedule, see the filing declaration at www.sedar.com).
about the company
TGSC’s mission is to build clean label brands that stand for functionality, taste and quality and are rooted in a company known for its socially responsible approach. Through its wholly-owned subsidiary Teonan, it produces and sells functional beverages under its two brands, Teonan and Velada. Inspired by ancient cultures’ relationships with mushrooms and in line with growing consumer trends towards functional foods, Teonan created the instant beverage lines with a bespoke blend of organic mushroom extracts selected for their known health benefits while keeping the focus on development delicious flavors. “All instant drink mixes from Teonan are certified organic (Ecocert – USDA), vegan, dairy-free, GMO-free and gluten-free. Teonan started selling Teonan drinks directly in North America, in the December 2019, through its online stores, and sales of Velada beverages to authorized retailers is expected to begin in the coming weeks.
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Cautionary Statement Regarding Forward-Looking Information
This press release contains statements that constitute “forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws, including statements about the company’s plans, intentions, beliefs and current expectations for future business and sales. Forward-looking statements are often identified by the words “could”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions. Investors are cautioned that forward-looking statements are not based on historical facts but instead reflect the company’s expectations, estimates or projections with regard to future results or events based on management’s opinions, assumptions and estimates at the time the statements are made were deemed appropriate. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties and should not be relied on because unknown or unforeseeable factors could have a material adverse effect on future results , Accomplishments or accomplishments. Key factors that could cause actual results to differ materially from those projected include the following: expectations about the future growth of the wellness drinks and cannabis industries; Market acceptance of the products, plans for and time of expansion of their products; Expectations of competition; Maintaining all necessary government licenses and approvals for its products; Benefit, safety, efficacy, dosage and social acceptance of cannabis products and no significant changes in the legal environment; Changes in applicable laws and regulations both locally and in foreign jurisdictions; Compliance with comprehensive government regulations; operational risks related to COVID-19 or other pandemic and supply chain disruptions. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, actual results may differ materially from the intended, planned, expected, assumed, estimated or expected results described herein. While the company has attempted to identify important risks, uncertainties, and factors that could cause actual results to differ materially, there may be others that could cause results not to be as expected, estimated or intended, and such Changes can be material. The company does not intend and assumes no obligation to update the forward-looking statements, unless otherwise required under applicable law. Trading in the Company’s securities should be viewed as highly speculative.
SOURCE The Good Shroom Co Inc.
For more information: Teonan Biomedical Inc., Eric Ronsse, President, Tel: (514) 924-2574, [email protected] | Website: thegoodshroom.co