Psilocybin Production Site 

CANBUD has evolved into psychedelics, nutraceuticals and functional mushrooms R&D with a focus on neurological applications. CANBUD has entered into a definitive agreement dated Dec 4, 2020, pursuant to which it will acquire 100% of the issued and outstanding securities of 2688453 Ontario Ltd, in exchange for 7,600,000 common shares in the capital of the company at a deemed price per share equal to $0.195. This is an arm’s-length transaction and a finder’s fee of 760,000 common shares is being paid. CANBUD’s focus on psychedelics and functional foods with an integration of innovative technology as delivery system, will position the company to expand into this emerging health and wellness market. 

Through this opportunistic acquisition, CANBUD has secured an approved 2-acre psilocybin production site near Negril, Jamaica with an allowance for expansion up to 20 acres. The acquisition also includes plans to complete up to a 40,000 square ft facility for the cultivation and operations areas. Management intends to maximize the full benefit of this acquisition through a strategic multi-phase business model. Additionally, given the ideal location of the facility, CANBUD has plans to build an exclusive retreat (anticipated timeframe for retreat build-out is 12 to 18 months), which promotes mental wellness through workshops and specially formulated micro doses of psilocybin. CANBUD is exploring the development of a biotech health and wellness delivery system, a technology patch to deliver micro dosage; nanotube-based which delivers potency through the skin therefore increasing bioavailability, in contrast to traditional consumption that is then digested in the liver and converted into enzymes. 

The acquisition of the Jamaica production site provides an opportunity for high-quality operations in a low-cost environment serving local and export markets. In Jamaica, the prospect includes the exportation of psychedelic products to other legal jurisdictions like Brazil, Netherlands and other markets.

Operating in a favourable jurisdiction like Jamaica will allow us to serve the export markets giving CANBUD a first mover advantage in the psychedelic space. We believe in the strong potential for a robust, legal psychedelic and nutraceutical industry to emerge globally and expect that the psychedelic market, including consumer perception, will undergo a paradigm shift as witnessed in the global cannabis industry. According to research and markets, the global nutraceutical industry is estimated to grow to US$ 722 billion by 2027 and the market for medicinal mushrooms within the nutraceutical industry will continue to evolve and develop. We anticipate that this will transition into a near term source of revenue for the Company. Recent global trends indicate that psychedelics are emerging as legal alternative candidates for conventional therapies for individuals suffering from maladies like PTSD, addiction and depression.” 

The acquisition of 2688453 Ontario Ltd. is the first major step undertaken by the Company within this emerging sector towards advancing psychedelic pharmaceutical and non-psychedelic nutraceutical-based products. Additionally, the Company plans to undertake and support clinical studies through strategic academic and institutional partnerships and plans to launch psilocybin-based products in jurisdictions where permissible.


DNA Markers Initiative


With CANBUD’s investment in the Jamaican psilocybin centre, it will be able to expand its research and development of an innovative micro-dosing technology. to include functional mushrooms and psychedelics. CANBUD is pleased to announce that it has started the development of medicinal mushroom immune support products formulated using functional mushrooms which have been safely consumed for many years and are known to contain powerful antioxidants and nutrients. Initial research has shown that consuming certain functional mushrooms can help strengthen immune systems, a critical part of today’s hectic lifestyle, as consumers are constantly worried about their health. Consumers worldwide are experiencing the need to improve their immune systems to prevent adverse infectious disease outcomes. Some of the key factors that are driving the global immune health supplements market are the growing prevalence of chronic diseases, the increasing geriatric population, and Covid-19. 

CANBUD has initiated the scientific application of DNA markers for mushroom improvement, an initiative that demonstrates the Company’s continuing application of Science and Technology to achieve a better understanding of the genetics of both functional mushrooms and psychedelic mushrooms. CANBUD will be able to identify and develop strains with specific substances to satisfy consumers that are conscious of their physical and mental well-being. DNA (molecular) markers or also known as genetic markers are sequences of genes responsible for certain traits that can be observed visually as phenotypes. DNA markers can also be linked to production of certain substances in a living organism. Recent studies indicate that several substances contained in functional mushrooms and psychedelic mushrooms have been known to contribute to physical and mental fitness. However, identification of specific mushroom strains with specific substance content has been difficult by just using phenotypic markers (only visible to the naked eye). Mushrooms mycelia and spores are often microscopic and usually filamentous with very few phenotypic markers. 

CANBUD’S DNA markers for mushrooms initiative is an expansion of its DNA markers project for the Company’s hemp line of business. The development of genome editing technologies has opened up the possibility of directly targeting and modifying genomic sequences in mushrooms. Targeted gene modification via chimeric genome editing tools, such as CRISPR/Cas9, is a powerful method to assess gene function and precisely manipulate cellular behaviour and function.


An Emerging Opportunity in Natural Healing

The Market For Nutraceutical Mushrooms Is… Mushrooming: A massive global $268.3B nutraceutical market— estimated to be growing at a CAGR of 7.8%. The global edible mushroom market itself reached a value of US$53.7B in 2019. Looking forward, some industry experts expect the market to reach a value of $86.6B by 2025, registering a CAGR of 8.3% during 2020-2025. Food Navigator found that year-on-year sales for food products incorporating medicinal mushrooms have risen between 200-800%.

The global functional food market is forecasted to reach US $34.3B by 2024. Functional mushrooms are used in a wide variety of healthcare and pharmaceutical products. This increases the applicability of these mushrooms in the food and beverage sector. The application of these mushrooms as a functional ingredient in medical industry is driving the growth of the market as functional mushrooms are being increasingly incorporated into health supplements. The Global Immune Health Supplements market is expected to grow from US$ 16.32B in 2019 to US$ 29.40B by 2027.


Health and Wellness Benefits

Psychedelics and Functional Mushroom Benefits

  • Psychedelic therapies including psilocybin, MDMA and other psychoactive compounds are slowly beginning to show medical potential as therapies designed to treat mental health concerns
  • Potential to provide significant medical benefits, especially for those suffering from mental health conditions such as post-traumatic stress disorder (PTSD), addiction issues or other ailments
  • All functional mushrooms work to balance energy levels, strengthen your immune system, make your skin’s natural glow stand out, and help smooth digestion. They help with this because they are adaptogenic, which means they balance out fatigue and anxiety
  • Mushrooms are loaded with polyphenols, polysaccharides, beta-glucans, and antioxidant properties. All of these compounds, together and separately, help to support your immune system
  • Mushrooms deliver dietary fibre, aiding in healthy digestion and an increase in beneficial gut bacteria in your digestive system
  • Chaga has been used in traditional medicine in eastern Europe in a variety of health problems such as stomach diseases. chaga can help reduce pro-inflammatory compounds like nitric oxide and cyclooxygenase. The water-based extract of chaga exhibited antiviral activity against common infections such as the flu. Chaga is also packed with beneficial antioxidants.
  • Himematsutake, Royal Sun Agaricus, was found to promote a healthy immune response 
  • Lion’s mane mushrooms are increasingly studied for their potential neuroprotective benefits. Nerve Growth Factors (NGFs) found in this mushroom might have the ability to regenerate and protect brain tissue
  • Cordyceps extract was able to increase powerhouse antioxidants rich in β-glucanssuperoxide dismutase and glutathione peroxidase, also decreasING pro-inflammatory monoamine oxidase and lipid peroxidation activity, which causes agING 
  • The polysaccharides and triterpenes in reishi extracts may help reduce excess fat storage and promote blood sugar balance due to their ability to down-regulate alpha-glucosidase, the enzyme responsible for breaking down starches into sugars.


An Emerging Opportunity in Natural Healing

The market for plant-based consumer wellness products is rapidly growing, more recently, the emergence of medicinal mushrooms and in the clinical setting, psychoactive ones, quickly producing additional markets in the sector.  Mushrooms have been part of the human culture for thousands of years and have considerable interest in the most important civilizations in history because of their nutritional value and medicinal properties. In recent years, mushrooms are distinguished as important natural resources for developing functional foods, nutraceuticals (dietary supplements) and drugs. As functional foods, mushrooms have been considered as “the new superfood” and are becoming a vital component of human diet for improving health and promoting quality of life. Approximately 130 medicinal functions have been described in mushrooms. The chief pharmacological uses of mushrooms discovered so far are as anti-tumour, immunomodulatory, antioxidant, antimicrobial, antidiabetic, hypocholesterolemic, etc. As a result of these properties, some mushrooms extracts and powders are used for the prevention and treatment of various life threatening diseases and are found as nutraceuticals (dietary supplements). Mushrooms nutraceuticals and functional foods (NFF) are not merely lifestyle interventions. Similar to pharmaceutical agents, NFF contain bioactive substances such as polysaccharides (e.g. β-D-glucans), terpenoids, phenolics, functional properties, etc. that, when administered at therapeutic doses target and modulate biological processes (e.g., intracellular signaling cascades) that foster the development of disease. Particularly mushrooms immunoceuticals, mainly polysaccharides such as β-D-glucans with anti-tumour and immunomodulatory effects have proceeded successfully through clinical trials and are used to treat cancer and chronic diseases. As a case study, recent advances in research conducted on the oyster mushroom (Pleurotus spp.), a good source of antioxidants and a candidate for immunotherapy applications. Pleurotus NFF could potentiate the host defense mechanisms and should be promising for further pharmacological studies. The effects on cell immunity are especially valuable in the prophylaxis of tumours, immunodeficiency and as co-adjuvant in chemotherapy. The results also demonstrate that not only mushrooms but also their mycelia may be an interesting renewable resource for nutraceuticals production. There is no better time for mushroom NFF to emerge as judged by their positive impact in human quality of life. The gap that exists between NFF research and the medical community needs to be closed so that mushrooms NFF can be implemented throughout all the stages of therapy. 1

What Are Adaptogens?

Adaptogens are substances commonly found in plants and fungi that produce resistance to stress in humans. They have specific compounds that may possess opposing qualities, producing sensations of relaxation or stimulation depending on the individual’s unique characteristics. Adaptogens are thus named for their unique ability to “adapt” their function according to the specific needs of the body.  This may promote physical, chemical and/or biological balance in the body. Evidence suggests fungi-based adaptogens can contribute to human wellness beyond the mind-balancing effect. 2

The global functional food market is forecasted to reach US $34.3B by 2024. Functional mushrooms are used in a wide variety of healthcare and pharmaceutical products. This increases the applicability of these mushrooms in the food and beverage sector. The application of these mushrooms as a functional ingredient in medical industry is driving the growth of the market as functional mushrooms are being increasingly incorporated into health supplements. The Global Immune Health Supplements market is expected to grow from US$ 16.32B in 2019 to US$ 29.40B by 2027.

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