The Good Shroom Co Inc (CVE:MUSH) announced that its subsidiary, Teonan Biomedical Inc, has received Health Canada (HC) authorization to sell and distribute its Velada brand cannabis-infused beverages made from functional mushroom extracts, the first such beverage line in the country.
Teonan holds an HC micro-processing license, which allows it to manufacture and develop topicals, extracts and edible cannabis products, including beverages. Before sales of the Velada beverages could commence, Teonan was required to demonstrate that its finished products and quality control procedures complied with HC's strict guidelines, the company said.
The micro-processing license was amended. allowing it to distribute Velada products nationwide through various provincial retailers, including the Société Quebecoise du Cannabis (SQDC), Canada's largest provincial cannabis retailer. The license has an annual cannabis extract processing limit of 150 million milligrams per year, which equates to 15 million units containing the 10 mg limit of THC.
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Velada is the first mushroom-based instant wellness beverage in Canada to contain cannabinoids, the company said. The powdered beverage mixes are vegan, dairy free, GMO-free, gluten-free and all contain 100 mg of functional mushroom extracts and a 30 mg dose of CBD per serving.
The company will also offer a low-THC version of the beverages with a 2:1 CBD:THC ratio, 4.5 mg and 9 mg, respectively. Flavors include hot chocolate, coffee and golden milk latte.
"We have been eagerly awaiting this authorization and we are ready to move forward," Good Shroom CEO Eric Ronsse said. "With relatively few established beverage suppliers and high barriers to entry, we expect the quality of our product, the variety of the offering and attractive price point will allow us to capture a share of the market and build a strong and loyal consumer base."
In conjunction with the HC authorization, the company said it will issue 1 million shares to CFO Scott Jardin, under the terms of a performance share agreement from September.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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