Company Overview
Mind Cure Health is a mental health and wellness company focused on the development of functional mushroom products.
It listed on the Canadian Securities Exchange in Sept 2020 under the ticker MCUR. The stock witnessed immense investor interest, evident by the fact that the over-allotment option was exercised. The company was able to sell a total of 14,950,000 shares (Including the over-allotment option of 1,950,000 shares). At a price of C$0.20 per share, the total aggregate gross proceeds were CAD $2,990,000.
The company plans to use the proceeds from the offering to build its senior operational and product management team, enhance and accelerate its digital marketing plan, develop additional mushroom products, and expedite its efforts to identify and evaluate the legal and commercial viability of new potential product candidates, such as psilocybin, in addition to its functional mushroom product line.
It also plans to pursue acquisitions that will help broaden its product offerings and facilitate entry into complementary distribution channels. Some of the most cited benefits of functional mushrooms include increased cognitive function and focus, anxiety reduction, increased endurance and energy levels, improved circulation, and improved immune system function.
Product & Distribution Overview
The company is developing three products under a branded line of organic mushroom formulations which it calls Moonbeam Mushrooms. It plans to sell each of its products in both powdered and capsule form.
Mind Cure expects its Moonbeam Mushrooms brand products to be ready for market before the end of 2020. It will sell its products as a dietary supplement in the U.S., a route that does not require pre-market approval. Distribution of its products within Canada is dependent upon its ability to obtain the Canadian Health Product Authorizations.
The company plans to distribute its products online and in retail stores throughout the U.S. as well as Canada, once it obtains the required Canadian Health Product Authorizations. Mind Cure operates its own eCommerce website and is working to develop other online distribution channels through marketplaces such as Amazon, Google Shopping, eBay, Bonanza, and Walmart Marketplace.
Mind Cure currently has retail distribution agreements in place with select retail outlets in British Columbia. It is working to expand its retail network in Canada, the U.S., and internationally. It has a retail distribution agreement in place with Body Energy Club, a Vancouver based vitamin and supplement retailer. Body Energy has 11 locations in North America including four locations in British Columbia.
After the initial release of its products and collation of customer feedback, the Company will look to incorporate improvements into the products and release version 1.0 of its product line. After estimating the product demand, it will focus on decreasing the cost of raw material, manufacturing, and packaging.
Competition
It is important to note that there are two distinct markets for mushrooms: 1) mushrooms products classified as food, and 2) mushrooms products that are classified as Natural Health Products (“NHP”). Mind Cure expects its products to fall under the second category, which has much more stringent regulations. To be classified as a NHP, the product must have a specific health claim attached to it.
Based on these criteria, the primary competition for Mind Cure includes Real Mushrooms, Fungi Perfecti, FreshCap Mushrooms, Four Sigmatic, and Psyched Wellness. All these companies are private and engage in the distribution of mushroom-based natural health products.
Market Outlook
Functional mushrooms are a variety of mushrooms that offer functional benefits to boost overall health. Due to its various functional properties, they have applications in the production of functional food products, cosmetic products, and medicines. These products are a rich source of antioxidants and therefore offer cognitive, digestive, and immunity benefits. Additionally, they also aid in balancing energy levels.
A sharp rise in the global functional mushroom market is expected over the next five years. This will be driven by the rising awareness about the benefits of the consumption of mushrooms. The global functional mushroom market was valued at US$23 billion and is estimated to reach $37 billion by 2025. This translates to a CAGR of over 8% between 2020-2025.
Growing demand for functional mushrooms from different end-use industries will positively impact the global functional mushrooms market over the coming years. Mushroom use for health and wellness is quickly growing in popularity around the world. Still, the market remains highly fragmented with no dominant player. Additionally, increasing product launches by market players and growing demand within the personal care industry to manufacture high-quality products is attributing to the market growth.
Functional mushrooms are also gaining increasing acceptance among millennials. This key market group is quickly catching onto new trends such as functional foods, gut-healthy probiotics, and adaptogens.
