
Havn said it is actively seeking new funding, but it might not be successful.
Havn said it is actively seeking new funding, but it might not be successful.
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.
Havn Life Sciences announced that, on August 31, 2020, its wholly-owned subsidiary, HAVN Research Inc., was granted a Section 56 exemption by Health Canada, meaning it now has the ability to possess certain amounts of pure psilocybin for scientific purposes, specifically for the research and development of quality control methods.
Havn recently began trading on the Canadian Securities Exchange using the ticker symbol “HAVN”. Havn Life said it is focused on the standardized, quality-controlled extraction of psychoactive compounds from plants and fungi to develop products for use in research. Havn Life is also developing natural healthcare products designed to unlock human potential, containing novel and natural psychoactive compounds. The company has no revenue as of yet.
“Listing on the Canadian Securities Exchange is an important step in Havn Life’s growth within the emerging global psychedelic space,” says Tim Moore, Havn Life Co-CEO. “There is a tremendous opportunity to transform and enhance the healthcare and wellness space with psychedelic medicine, and the time is now to lay the foundations for what is likely to be a significant industry. Our multidisciplinary team is focused on laying the groundwork by developing quality controls and methodology for research and the medical supply chain.”
Moore was the only employee of Havn when the prospectus was published. Havn Research has a staff of seven, comprising seven consultants and no fulltime employees. Havn Research said it has the qualified personnel required to operate its facility and to develop research protocols and formulate drug compounds
“We are currently working on a variety of projects including product formulation of effective microdosing of novel psychoactive compounds as well as the development of a state-of-the-art mycology lab for extraction,” said Susan Chapelle, Co-CEO of Havn Life.
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