At No Fault of Their Own, Many Equities Are Now Temporarily Undervalued as a Result of the Coronavirus
Psychedelics Firm Champignon Brands Set to Buy Back up to 2.41 Million Shares While SHRM Stock is Undervalued
Champignon Brands (CSE: SHRM) (OTC: SHRMF) (FRA: 496) announced on Friday that it intends to begin a normal course issuer bid (NCIB) to purchase up to an aggregate of 2,411,883 common shares, representing 5% of the issued and outstanding common shares as of March 20, 2020.
A Normal Course Issuer Bid (NCIB) is a term used in Canada for a type of stock buyback. Investopedia describes an NCIB as the following:
“A normal-course issuer bid is a Canadian term for a company repurchasing its own stock from the public in order to cancel it. In a normal course issuer bid (NCIB), a company is allowed to repurchase between 5% and 10% of its shares, depending on how the transaction is conducted. The issuer repurchases the shares gradually over a period of time, such as one year. This repurchasing strategy allows the company to buy only when its stock is favourably priced.”
Champignon Brands is taking this action because the company believes that current market conditions have resulted in Champignon’s shares being undervalued relative to the immediate and long-term value of its vertically integrated alternative medicine product range.
Pursuant to the NCIB, the company may, if considered advisable, purchase the common shares through the facilities of the Canadian Securities Exchange (CSE) and/or alternative trading systems, from time to time, over the next 12 months.
Purchases may commence through the CSE and/or alternative trading systems on March 27, 2020, and will conclude on the earlier of the date on which purchases under the bid have been completed or March 27, 2021. All common shares purchased by the company will be cancelled. Champignon has appointed PI Financial Corp. to coordinate and facilitate its NCIB purchases.
Champignon Brands is a health and wellness company specializing in the formulation of a suite of medicinal mushrooms and novel delivery platforms for the pharmaceutical and nutraceutical industries. On Thursday, Champignon announced it signed a deal to acquire Novo Formulations, a specialty biotech firm currently working with Ketamine, Anaesthetics and Adaptogenics.
The company plans to leverage the Novo Formulations acquisition to pursue Psilocybin and MDMA formulations. Champignon will look to develop and commercialize rapid onset treatments capable of helping individuals suffering from conditions such as depression, PTSD and substance and addiction. Currently, the market in North America for pharmacologic DPS treatments exceeds $10 billion annually.
Champignon is also in the process of acquiring British Columbia based craft mushroom cultivator and supplier Artisan Growers Ltd. The acquisition of Artisan Growers will allow the company to continue accelerating its vertical integration strategy by adding craft mushroom production, manufacturing and research capabilities to its arsenal.
Champignon Brands is well on its way to achieving its goal of creating the most compelling IP portfolio, clinical pipeline and drug development platform in the Psychedelics space.
Champignon’s goals for 2020 include the following:
- Successfully biosynthesize psilocybin within the first three months of laboratory experiments.
- Optimize and scale production of pharmaceutical-grade psilocybin, which can be utilized in clinical settings.
- Starting in Q3 2020, begin developing medicinal psychedelics through clinical trials.
- Develop hallucinogenic therapies using high doses of Psilocybin and LSD.
- Develop non-hallucinogenic therapies using microdoses of Psilocybin, MDMA and LSD.
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Champignon Brands is a paid client of The Cannabis Investor. The Cannabis Investor holds a position in Champignon Brands.
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