Havn Life Sciences Inc. (CSE: HAVN) (OTC: HAVLF) is buying functional mushroom wellness brand Spore Life Sciences Inc. Toronto-based Spore Life Sciences Inc. has a significant U.S. consumer base of more than 110,000 Spore customers, nearly 40,000 subscribers, resulting in year to date revenues as of the end of November 2021 of nearly C$8 million, and current sales of more than $1 million per month.
“With this Definitive Agreement, Havn Life is looking to strengthen its position as a leader in brain health focused nutritional supplements,” says Havn Life CEO Tim Moore. “Upon completion of the Acquisition, we will add these high-quality formulations to the Havn Life natural health product portfolio,” he adds.
Spore was co-founded by CEO and president Michael Zavet, who began looking into the beneficial properties of functional mushrooms to deal with his own personal health matters. Michael Zavet, the current Spore Life Chief Executive Officer and President will stay on to provide the services of Chief Revenue Officer and have a consulting agreement with Neon Flux LLC to provide marketing and advertising services. Alex Kaplunov, the current Chief Financial Officer and Secretary of Spore will stay on to provide the services of Chief Business Development Officer.
Spore’s third-quarter 2021 net revenue could surpass C$3 million and net monthly revenue in October and November 2021 alone of nearly C$3.6 million. Spore currently sells its line of products in the United States, with majority of its sales through its DTC website, and the remaining sales coming through Amazon.com, and select other eCommerce resellers. In 2022, Spore plans to expand to other geographies, including Canada where Spore has five Natural Product Numbers and the four others submitted to Health Canada, and grow into a full omnichannel wellness company.
The completion of the deal will bring in nine additional formulations under the Havn Life retail brand, adding to the company’s growing selection of natural health products that support overall health and cognitive function. Havn Life has agreed to issue up to $11 million worth of common shares to the former shareholders of Spore, and up to $19 million worth of common shares to certain consultants that will join Havn Life upon completion of the acquisition.
“We are very excited about this potential partnership and believe that Havn Life’s strong leadership team in the psychedelic space, its experience with natural health products, and network in retail are extremely complementary to our business,” says Spore CEO, Michael Zavet. “We are also excited to support Havn’s psychedelic endeavors through our digital marketing channels and large customer base,” he adds.