The Good Shroom Co Inc (CVE:MUSH) announced it had struck a private labeling agreement with Good Food Marketing Corporation to produce functional beverages.
Under the agreement, the two companies will collaborate to manufacture and deliver three distinct functional beverages.
The agreement begins this year and encompasses an initial order of 3,000 units, Montreal-based Good Shroom said in a statement.
READ: The Good Shroom Co debuts on the TSX Venture exchange, bringing functional mushroom-based wellness beverages to the forefront
Good Shroom creates and manufactures functional beverages under its in-house brands, Teonan and Velada.
The new private labeling initiative is part of a new approach to firm up its position in the burgeoning functional mushroom industry through building its own brands and white label manufacturing for other companies, Good Shroom said.
"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," Good Shroom’s CEO Eric Ronsse told shareholders.
"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.”
The group started trading on the TSX Venture Exchange in April 2021.
Multi-billion-dollar industry
CEO Ronsse noted that functional mushrooms are “packed with nutrients” and were relied on for nourishment and their medicinal benefits for centuries.
“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,” Ronsse added.
The global functional mushroom market is expected to grow annually by 9% for the next three years and is expected to reach US$34 billion by 2024.
The company also 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. The options will vest over a period of twenty-four months following the date of the grant.
Additionally, Good Shroom 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.
Contact Angela at angela@proactiveinvestors.com
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