The Artisan Growers Acquisition Will Allow Champignon Brands’ to Continue Accelerating its Vertical Integration Strategy
Champignon Also Plans to Create the Most Compelling IP Portfolio, Clinical Pipeline and Drug Development Platform in the Psychedelics Sector
Champignon Brands (CSE: SHRM) (FRA: 496) announced yesterday the execution of a definitive agreement to acquire British Columbia based craft mushroom cultivator and supplier Artisan Growers Ltd.
Artisan Growers operates a craft mushroom cultivation facility capable of producing an assortment of organic craft mushroom varietals, including Lion’s Mane, Chaga, Reishi and Agaricus Blazei. Artisan utilizes a variety of cultivation techniques and grow infrastructures to produce premium craft mushrooms.
The acquisition of Artisan Growers will allow Champignon Brands to continue accelerating its vertical integration strategy by adding craft mushroom production, manufacturing and research capabilities to its arsenal.
Once the deal closes, Champignon will integrate Artisan’ craft mushroom production capacity into its existing medicinal mushroom manufacturing, formulation and distribution infrastructure, further strengthening the company’s ability to control its supply chain directly to the end-user.
“With the acquisition of Artisan Growers, we continue to optimize our upstream, downstream and distribution capabilities, all the while securing valuable infrastructure to expedite our R&D pursuits. Over the coming quarters, we will tactically execute on our stated business plan and look to also emerge as a best-in-class vertically integrated medicinal mushroom extract formulator, integrating alternative medicine, clinical research and vocational rehabilitation into the Company’s current product portfolio,” said Champignon Brands CEO Gareth Birdsall.
Within the existing Artisan Growers facility, Champignon has allocated a dedicated laboratory area that will be used for research and development (R&D) activities as well as fungi profile analysis.
The laboratory’s main objectives include:
- Isolating and synthesizing of certain plant/fungi extracts.
- Formulating bioactive compounds extracted from plants/fungi.
- Further investigating the integration of its mushroom extracts as an alternative medicine delivery system.
- Cultivating fungi varietals, which will include psilocybin, to be commenced as soon as the Company has determined the appropriate regulatory approvals have been received.
As per the terms of the deal, Champignon Brands will acquire 100% of Artisan Growers in exchange for 8 million SHRM common shares. The payment shares will be issued at a price equal to a five-day volume-weighted average price at the time of issuance.
Source: Shutterstock
Also Read: 3 Psychedelic Stocks Investors Should Have on Their Radar in 2020
2020 Could Be a Year of Major Transformation
While Champignon Brands’ mushroom portfolio is an excellent business on its own, it makes up only a small portion of the company’s ambitious 2020 plans. Champignon has stated that it plans to remain focused on this segment of the business in Q1 2020 before turning its attention towards creating “the most compelling IP portfolio, clinical pipeline and drug development platform in the psychedelics space.”
2020 could prove to be a year of major transformation for Champignon Brands and its shareholders. The company has vowed to successfully biosynthesize psilocybin within the first three months of laboratory experiments. Champignon will then look to optimize and scale its production of pharmaceutical-grade psilocybin, which can be utilized in future clinical settings.
Starting in the third quarter of this year, Champignon intends to begin developing medicinal psychedelics through clinical trials. The company is planning to develop hallucinogenic and non-hallucinogenic therapies using high doses of Psilocybin and LSD as well as microdoses of Psilocybin, MDMA and LSD. Psilocybin is well known for being the psychedelic compound found in Magic Mushrooms.
SHRM Stock Price Action & Chart
Shares of Champignon Brands’ CSE listed SHRM stock closed Friday’s trading session at $0.355 per share, even on the day. The company’s shares are now listed on Germany’s Frankfurt Stock Exchange under the symbol ‘FRA: 496’. Champignon’s German listed stock closed trading on Friday up 5.45% at $0.213 per share. It is expected that the company will complete its listing trio by adding a U.S. OTC Markets listing shortly. An OTC Markets listing will further enhance Champignon Brands’ liquidity as well as allow American investors to easily purchase the stock.
Following Champignon Brands’ IPO on March 2, 2020, SHRM stock soared as much as 128% in its first week of trading. After reaching a high of $0.445, the stock has experienced a healthy correction and now looks poised to begin another move higher.
Despite the recent stock market correction caused by the Coronavirus pandemic, SHRM and Psychedelic stocks as a whole have held up much better than most sectors. Like the early days of the cannabis green rush, which saw pot stocks soar regardless of overall stock market conditions, Psychedelic Stocks could follow a similar path. If I had to pick one sector to invest in that’s capable of producing substantial gains in 2020, my money’s on Psychedelics.
Source: Barchart
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