Flourish Mushroom Labs, a subsidiary of Yield Growth (BOSS.C), entered into a binding letter of intent with Acres Agricultural Canada to form a JV in Saint Vincent and the Grenadines for the cultivation of psilocybin mushrooms, and for research and development into compounds and therapeutic uses for psychedelic mushrooms.
The deal hinges around the proposed research and development of psilocybin for therapeutic use, and how it relates to the recently passed Plant Breeders’ Protection Bill of 2019. The company’s goal with this JV is the construction of a medicinal industry in the country.
“Acres Agricultural is very pleased to announce this collaboration with Yield Growth and Flourish Mushroom Labs. Through AF Labs we aim to further the global research and associated medicinal use of psilocybin, while contributing to the development of a new medical frontier for the country of Saint Vincent and the Grenadines,” said Patrick Power, chief executive officer of Acres.
When someone describes retiring to some obscure paradise island in the Caribbean, they’re probably unconsciously referencing St. Vincent and the Grenadines. It’s a multi-island Anglo-Caribbean country in the Lesser Antilles island arc, in the southeast Windward islands, which is closer to the West Indies in the southern end of the eastern border of the Caribbean Sea where it meets the Atlantic.
The political climate for psychedelic mushrooms is curious and Yield and Acres are hoping they can get the same exception for psilocybin that’s been offered for cannabis, allowing them to cultivate their mushrooms under controlled conditions, coupled with existing offshore medical academic programs.
Plant breeding is the multi-generational process in which both genotypical and phenotypical traits of a plant can be manipulated to serve whatever need the scientist may require. In some cases, it can make a plant more disease-resistant or insect repellent, making the food form these plants more nourishing, or making the plant more productive.
For magic mushrooms—it could be something as simple as enhancing the production of the chemical that stalls appetite to be henceforth sold in appetite suppression formulations—which has been the subject of Yield’s past inquiries.
“We are very excited to be the first publicly traded company to announce a legal path to cultivate and research psychedelic mushrooms. There is a renaissance of psychedelic medicine for which investor interest could go viral at any time. We are planning to enter this space with first mover advantage to deliver value to our shareholders,” said Yield Growth and Flourish chief executive officer Penny White.
The agreement by the numbers
The agreement has AF Labs building a lab in Saint Vincent to cultivate psilocybe semilanceata, which is a polyphyletic mushrooms. If you’re not exactly down on your random scientific nomenclature, it’s a mushroom derived from more than one common evolutionary ancestor or ancestral group. They’ll be extracting the psilocybin for research and development of the strains, compounds and therapeutic uses.
Acres and Flourish will split ownership of the lab, and Flourish will contribute $200,000 in initial operating capital as a secured loan at a tidy annual interest rate of 8%. Additional capital for AF Labs will be financed equally by Acres and Flourish or by capital raises as approved by the directors of AF Labs.
In a separate but related contract, Acres will act as a consultant for Yield for the development and cultivation of proprietary cannabis strains to be grown in Saint Vincent and the Grenadines. The initial compensation for Acres will be 200,000 in Yield Growth stock.
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