EuroLife Brands Inc (CSE:EURO) (OTCMKTS:EURPF) is expanding its product offering, thanks to a new deal with artisan mushroom cultivator Champignon Brands Inc.
The Toronto-based company signed an exclusive distribution deal with Champignon, in relation to its portfolio of mushroom-derived consumer packaged goods offerings, including its flagship brand Vitality Superteas.
In addition to being the exclusive distributor for Germany, Switzerland and the UK, EuroLife will have non-exclusive rights to other locations around the globe.
READ: EuroLife Brands inks LOI with AgraFlora Organics to create cannabis education content in Germany
The European-focused cannabis company told investors on Monday that it planned to integrate Champignon’s products into EuroLife’s e-commerce platform and potentially distribute the brands in a handful of physical retail locations.
EuroLife CEO Shawn Moniz said that the addition of Champignon products to the company’s suite of health and wellness-oriented offerings is a “natural fit.”
"Informed, educated, and health conscious European consumers demand products that are not only high quality but are on the cutting edge of their respective industry segments and we believe that Champignon fits this criteria.”
Moniz cited estimates showing that the global mushroom market accounted for US$38 billion in 2017 and is forecast to expand at a compounded annual growth rate of nearly 8% from 2018 to 2026.
“Additionally, a resurgence of interest in the study of psilocybin in treating a variety of medical conditions, alongside shifting popular opinion, such as the passing of Initiative 301 in Denver Colorado where voters approved a measure that prohibits the city's government from deploying resources to impose criminal penalties relating to the consumption and possession of psilocybin by adults over 21 years of age, should prove to be tailwinds for the segment as a whole,” Moniz said in a statement.
“We are excited to be partnering with Champignon in order to bring their products to our European consumer network."
EuroLife also announced that it plans to raise proceeds of up to C$500,000 through a private placement of nearly 6.7 million shares priced at C$0.075 per unit.
The funds raised will go towards future acquisitions and opportunities in Europe as well as general working capital.
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