Equity Guru: There’s a hidden story behind NewLeaf Brands (NLB.C) agreement with Trellis Holdings Oregon, LLC, and that involves unique positioning to be involved and potential first mover advantage in the newly emerging mushroom market,

A cannabis company producing another build-out, another dispensary or pushing forward incrementally isn’t what necessarily passes newsworthy muster. This isn’t 2017 anymore, and it’s generally assumed that most companies are going to do this. Ditto for companies making partnerships and agreements and the like with mostly unknown private companies (like Trellis Holdings) to perform basically the same function.

But there’s a hidden story behind NewLeaf Brands (NLB.C) agreement with Trellis Holdings Oregon, LLC, and that involves unique positioning to be involved and potential first mover advantage in the newly emerging mushroom market, as well as significantly expanding their cannabis offerings.

“We announced the LOI to acquire a position in Trellis some time back and have been working diligently to close the transaction. This transaction is significant in a number of ways for the company. Not only does Trellis bring a wealth of assets, potential revenue and key personnel but the crossover between the cannabis space and the mycology space is immense,” according to Joshua Bartch, CEO of NewLeaf Brands.

Put together by a group of cannabis industry vets, Trellis Holdings Oregon has been in operation since 2015. It cultivates thousands of pounds of high-quality cannabis per year, including strains in excess of 30% THC content, and includes seven figure revenues that have enjoyed significant growth year after year.

As for holdings, Trellis has a list of licenses through the Oregon Liquor Control Commission (OLCC) in Oregon and operates in both the medical and recreational cannabis markets. They have an 11-acre recreational cultivation property in Southern Oregon, and operate a medical and recreational cannabis dispensary in Portland, Oregon. In addition to the weed advantages the new offering brings, it would place NewLeaf at the starting line for the new psilocybin market once it goes through.

If it goes through…

The Psilocybin Service Initiative, or Initiative #34, received certification in 2019 giving citizens of Oregon the first kick at the can to legalize it in 2020. The due date for that is coming up. The measure would create a program and client screening process for administering psilocybin under the Oregon Health Authority. The program would allow licensed providers to use psilocybin on pre-screened individuals 21 years or older through a process that involves preparation, administration and integration sessions.

The measure requires a two-year development period for the Oregon Health Authority to adopt regulations for psilocybin services and licensing. It also requires that an advisory board appointed by the governor be established to advise the Oregon Health Authority

“Through Initiative #34, Oregon is poised to be the first territory on the planet to not just decriminalize, but actually legalize, psychedelic mushrooms in some capacity. Given that Trellis operates its cultivation in Southern Oregon on an 11-acre property that is already owned, debt-free, by NewLeaf Brands, the Company has a unique opportunity to share the land and staff for a potential future mycology cultivation space and laboratory. With recent donations to the tune of $1,000,000 towards the Petition from prominent companies such as Dr. Bronner’s Soap, the likelihood of the initiative becoming a reality is beginning to look truly promising,” said Bartch.

The company has entered into the Agreement to acquire 37.5% of the issued and outstanding share capital of Trellis in exchange for 28,000,000 shares of the company at $0.106 per share, representing 33.2% of the shares for approximately CAD$2,968,000.

—Joseph Morton

Source:  https://equity.guru/2020/05/07/newleaf-brands-nlb-c-puts-starting-line-psilocybin-market-oregon/?utm_source=Equity.Guru&utm_campaign=2fd629ccbc-EMAIL_CAMPAIGN_2020_05_08_09_54&utm_medium=email&utm_term=0_6a0553f4da-2fd629ccbc-158142961

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