Vancouver, B.C. – September 13, 2021: Better Plant Sciences Inc. (CSE: PLNT) (OTCQB: VEGGF) (FRA: YG3) (“Better Plant”), a wellness company that develops and sells sustainable, plant-based products that are better for health and better for the earth, is pleased to announced that on September 10, 2021 it purchased mushroom coffee functional food assets, eCommerce platforms, consumer data and related marketing properties from affiliate NeonMind Biosciences Inc. (“NeonMind Biosciences”) for C$645,000 plus a royalty of 3% of net product sales above C$1,000,000 for 25 years.
Each of the functional mushroom blends and botanicals included in the purchased coffees include adaptogens, which means that they work with one’s body to help manage physical, mental, and emotional stressors. Functional mushroom specifically refers to mushroom varieties that have a health benefit beyond providing nutrition.
The purchase included 4 functional food mushroom coffee products being sold in Canada and 4 mushroom coffee dietary supplement products currently being sold in the U.S. including associated inventory, raw materials and packaging, as well as information and intellectual property associated with 4 applications to Health Canada for Natural Health Numbers, including one which was granted (the “Applications”), as well as the domain at www.neonmind.com, the Neonmind.com Shopify-enabled websites in Canada and the US, along with all sales and consumer data, and Instagram, Facebook, TikTok and Pinterest social media properties to support mushroom coffee sales.
The consideration paid by Better Plant to NeonMind Biosciences for the purchased functional food assets was C$645,000 including GST and all other applicable taxes (the “Purchase Price”) plus a royalty of 3% of net product sales payable by Better Plant to NeonMind Biosciences for 25 years, payable on cumulative net product sales of over C$1 million (the “Royalty”). The payment of $645,000 was made by setting off the balance due of C$645,000 on a note owed by NeonMind Biosciences to Better Plant which would have been payable in February 2022.
The purchased mushroom coffee dietary supplements follow all FDA regulations that focus on comprehensive GMP (Good Manufacturing Practices) to ensure the identity, purity, quality, strength, and composition of dietary supplements. The products include certified organic mushroom extracts which go through the decoction process (traditional water boiling) to maximize the bioavailability of the product. The products follow strict US pharmacopeia guidelines for lead and other chemicals required by Proposition 65 for safe and daily intake.
The global functional mushroom market was valued at USD $25.4 billion in 2020, and it is estimated to register a compound annual growth rate of 8.44% during the forecast period 2021-2026, according to a report by Mordor Intelligence.
The disposition of the mushroom coffee assets by NeonMind Biosciences will allow it to focus on psychedelic drug development programs, which include the advancement of NEO-001, synthetic psilocybin, to treat obesity into a regulator-approved psychedelic drug product. NeonMind is now well positioned to more efficiently utilize capital to progress as a leading company in the transformative field of interventional psychiatry, with two divisions: 1) a pharmaceutical division focused on psychedelic drug development and 2) a medical services division focused on providing evidence-backed treatments including psychedelics.
With the pharmaceutical division, NeonMind aims to advance NEO-001 through major drug development milestones including a pre-IND meeting with the FDA and a pre-CTA meeting with Health Canada in Q4 2021 for the planned Phase 1/2 study aimed to address deficiencies in chronic weight management. With the medical services division, the company is focused on setting up a specialty clinic network providing interventional psychiatry treatments, including psychedelics, with a target to announce the first location in Q4 2021. Better Plant currently owns 33,231,000 shares in NeonMind Biosciences, which is approximately 26.6% of its outstanding capital. The shares are subject to periodic releases pursuant to an escrow agreement.
About Better Plant Sciences Inc.
Better Plant harnesses plant intelligence and leverages modern science to offer sustainable, plant-based products that are better for health and better for the earth. It makes and sells over 75 proprietary products, all made with 100% natural ingredients, under the brands Jusu, Urban Juve and Wright & Well. Better Plant operates Jusu Bar, a quick serve restaurant alternative in Victoria, BC, which serves up fresh, healthy, and nutritious options with a focus on Jusu cold-pressed juices. Jusubar.com offers home delivery of refrigerated plant-based beverages consisting of cold-pressed juices and packaged juice cleanses. Through its Shopify enabled eCommerce sites getjusu.com and urbanjuve.com, Better Plant sells plant-based personal care products and cleaning products. Better Plant products are sold through a network of over 150 online and brick and mortar retail locations including Whole Foods Market, Pharmasave, Healthy Planet and Vitasave. Better Plant also offers operational, financial, and other services to companies with businesses that align with Better Plant’s mission to help create a better world.
Penny White, President & CEO
Amber Allen, Head of Sales
The Canadian Securities Exchange has not reviewed, approved or disapproved the contents of this news release.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking information and statements (collectively, “forward looking statements”) under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates, forecasts, beliefs and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: risks related to the development, testing, licensing, brand development, availability of packaging, intellectual property protection, reduced global commerce and reduced access to raw materials and other supplies due to the spread of COVID-19, the potential for not acquiring any rights as a result of the patent application and any products making use of the intellectual property may be ineffective or the company may be unsuccessful in commercializing them; and other approvals will be required before commercial exploitation of the intellectual property can happen. Demand for the company’s products, general business, economic, competitive, political and social uncertainties, delay or failure to receive board or regulatory approvals where applicable, and the state of the capital markets. Better Plant cautions readers not to place undue reliance on forward-looking statements provided by Better Plant, as such forward-looking statements are not a guarantee of future results or performance and actual results may differ materially. The forward-looking statements contained in this press release are made as of the date of this press release, and Better Plant expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.