The Good Shroom Co Receives Authorization to Commence Sales of the Velada Cannabis

MONTREAL, June 17, 2021 /CNW/ – The Good Shroom Co Inc. (the “Company” or “TGSC“) (TSXV: MUSH), is pleased to announce that its wholly owned subsidiary, Teonan Biomedical Inc. (“Teonan“), has received authorization from Health Canada to commence the sale and the distribution of its beverages which are Canada’s first cannabis infused beverage line made with functional mushroom extracts.

Teonan holds a micro-processing license delivered by Health Canada under the Cannabis Act, which allows it to manufacture and develop topicals, extracts and edible cannabis products which includes beverages. Before sales of the Velada beverages could commence, Teonan was required to demonstrate its finished products and quality control procedures complied with Health Canada’s strict guidelines. Teonan’s micro-processing license was amended by Health Canada allowing it to distribute the Velada products nationwide, through various provincial retailers, including the Société Quebecoise du Cannabis (SQDC) which is Canada’s largest provincial cannabis retailer. A micro-processing license has an annual cannabis extract processing limit of 150,000,000 mg per year. With Health Canada’s limit of 10 mg of THC per unit, this equals up to 15,000,000 units containing THC which can be sold yearly. The Company has strategically chosen a micro-processing license instead of a standard processing license due to the high cannabis processing limit with the reduced cost associated to maintaining this type of license.

Velada is the first mushroom-based instant wellness beverage in Canada which contains cannabinoids. The beverage mixes which come in powdered form 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 be offering a low THC version of the beverages with a 2:1 CBD:THC ratio for optimal effectiveness, with 4.5mg of THC and 9 mg of CBD per serving in order to have an expanded and versatile offering to appeal to a wider variety of customers. Flavours available for distribution include hot chocolate, coffee and golden milk latte. The Company anticipates expanding the Velada product line with additional flavours and products following market response and emerging industry trends. This authorization to begin sales also allows the company to initiate its agreement with its sales broker Velvet Management Inc., Canada’s leading cannabis sales agency, which represents the company across Canada.

“We have been eagerly awaiting this authorization and we are ready to move forward” stated Eric Ronsse, the Chief Executive Officer of TGSC. “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 Canada the…