The Good Shroom Co Inc., a Quebec based company that created and manufactures functional beverages under its two brands: Teonan® and Velada™, announces that it has entered into a private labelling agreement with Good Food Market Corporation (“Good Food“) pursuant to which it will manufacture and deliver three distinct functional beverages, starting this year. TGSC’s private labelling initiative is part of a two-pronged approach to solidify its position in the growing functional mushroom industry by focusing on building its own brands and by selling and supplying privately labelled products to other companies.
“This introductory order of 3,000 units will allow us to establish a relationship with Good Food and we expect, will lead to additional ongoing orders of at least 15,000 units per product in line with the terms of our two year contract.” stated Eric Ronsse, the Chief Executive Officer, “In addition, with the recent cash injection that followed the completion of the Company’s qualifying transaction, we expect to accelerate certain initiatives for both of the Company’s mushroom-based beverage lines: the Teonan and the Velada brands.
Functional mushrooms are packed with nutrients and for thousands of years, fungi were relied on for nourishment and their medicinal benefits. In recent years, renewed interest by the scientific community led to numerous studies showing their overall health benefits and unsurprisingly, mushrooms are making an important comeback; the global functional mushroom market is expected to grow annually by 9% for the next three years and is expected to reach US$34B by 2024[i].”
The Company also announces it has granted 1,755,000 Options, having an exercise price of $0.30, and an expiration date of April 30, 2028, to the directors and officers of the Company. These options will vest over a period of twenty-four months following the date of the grant. The Company has also granted 150,000 options to Frontier Flex Marketing, an investor relations firm, of which 75,000 options have an exercise price of $0.30 and 75,000 options have an exercise price of $0.50. The options expire April 30, 2025 and are subject to vesting in four equal tranches over a 12-month period.
TGSC’s mission is to build clean label brands that are synonymous with functionality, flavour and quality, rooted in a company recognized for having a socially responsible approach. Inspired by the relationships ancient cultures held with mushrooms and in line with growing consumer trends towards functional foods, the Company’s wholly owned subsidiary, Teonan Biomedical Inc., (“Teonan”) created the instant beverage lines, Teonan and Velada, using a custom blend of organic mushroom extracts chosen for their known health benefits, all the while keeping the focus on developing delicious flavors. The Velada beverage line is a cannabis infused version of the Teonan product. Teonan’s instant beverage mixes are certified organic (Ecocert – USDA), vegan, dairy free, GMO free and gluten free. Teonan began direct to consumer sales of the Teonan beverages in North America, in December 2019, via its online stores and sales of the Velada beverages to authorized retailers is expected to commence once the Company receives authorization from Health Canada.