Ms. Penny White reports
YIELD GROWTH SUBSIDIARY FLOURISH MUSHROOM LABS SIGNS LOI TO PURCHASE INTEREST IN TRANSLATIONAL LIFE SCIENCES INC.
The Yield Growth Corp.'s subsidiary, Flourish Mushroom Labs Inc., has entered into an agreement to acquire approximately 18 per cent of the outstanding stock of Translational Life Sciences Inc. (TLS).
TLS aims to develop proprietary formulations using restricted substances to focus on unmet medical needs in opioid dependence, psychotic illness, pain management and traumatic brain injury, including concussion. The company also offers services to design and oversee clinical trials of restricted substances such as psilocybin-based formulations for third parties. Its team comprises physicians and scientists who are recognized thought leaders in the fields of neurology, pharmacology, pain management, addiction and biochemistry and have significant experience in the clinical application of cannabinoid compounds.
The company's medical team includes Dr. William Honer and Dr. Caroline MacCallum and Dr. William Panenka, MD, MSc, FRCPC (neurology and psychiatry). The founder of TLS, Dr. Panenka, is a dually boarded neurologist and psychiatrist and Canadian Institute of Health Research-funded academic faculty member at the University of British Columbia. He did a postdoctoral fellowship at UBC and Harvard University. He maintains an internationally recognized research program in brain injury, mental health and addictions. Dr. MacCallum is the chief medical officer of TLS. She is a pharmacist and internal medicine physician with deep expertise in complex pain and medical cannabis. She is a medical director of a Vancouver-based private cannabis clinic and an internationally sought-after speaker and world-recognized leader in cannabis education, policy, clinical guideline development and research. Dr. Honer is a key scientist at TLS and an internationally recognized translational scientist and physician. He is a psychiatrist and the previous head of department at UBC. He is fellowship trained at Columbia University and the Albert Einstein College of Medicine. Has published over 300 peer-reviewed manuscripts including primary clinical trial authorship works in journals such as the New England Journal of Medicine.
The terms of the binding letter of intent are as follows:
Yield Growth subsidiary Flourish shall issue 15 million units of Flourish, consisting of 15 million shares and 15 million units to acquire additional Flourish shares at 50 cents per share, and in exchange Flourish shall acquire approximately 18 per cent of the TLS stock, at a deemed cost of $750,000.
The transaction assumes a postclosing valuation of Flourish of approximately $7-million.
No shares or warrants in Yield Growth shall be issued as part of the transaction, although Yield Growth's ownership in Flourish shall be diluted down to approximately 82 per cent at closing and down to 70 per cent on a fully diluted basis.
"I'm overjoyed that Flourish can provide a leading investment into a company with such enormous potential," said Yield Growth and Flourish chief executive officer Penny White. "We will fully support TLS in its goal to develop over-the-counter products to prevent and treat opiate addiction, which is having devastating effects on individuals, families and communities across the globe."
The Centers for Disease Control and Prevention estimates that the total economic burden of prescription opioid misuse alone in the United States is $78.5-billion a year, including the costs of health care, lost productivity, addiction treatment and criminal justice involvement.
About Flourish Mushroom Labs Inc.
Created by and incubated by the team at Yield Growth, Flourish Mushroom Labs aims to be a leader in the fast-growing functional foods market and improve life by offering high-quality mushroom-infused products that naturally support better health. Flourish Mushroom Labs is investigating patentability of innovative therapeutic uses of magic mushrooms and plans to research into therapeutic benefits of some of the compounds found in magic mushrooms through clinical trials.
About The Yield Growth Corp.
Yield Growth is building and operating hemp, cannabis and edible mushroom assets in what the Global Wellness Institute reports is a $4.2-trillion global wellness market. It owns the cannabis wellness brands Urban Juve, Wright & Well and Jack n Jane. The Yield Growth management team has deep experience with global brands including Johnson & Johnson, Procter & Gamble, M.A.C Cosmetics, Skechers, Best Buy and Aritzia.
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