CANADA – Champignon Brands, a producer of mushroom infused beverage products has raised $2.83 million after successfully completing its initial public offering (IPO) on the Canadian Securities Exchange.

Champignon floated 18,916,667 common shares on the Canadian Securities Exchange at a price of $0.15 per Share in which PI Financial Corp. acted as the agent for the IPO.

Following the successful completion of the IPO, the mushroom-derived consumer packaged goods producer anticipates that its common shares will resume trading on the CSE on Monday March 2, 2020.

The company plans to use the proceeds to fund its proposed operational expansion and improvements, marketing program, product development and product line expansion and for working capital purposes.

Champignon specializes in the formulation and end distribution of a suite of artisanal mushroom infused beverage products, with the objective of promoting holistic health and wellness through a healthy diet.

To date, the Company has focused on the distribution of its flagship brand Vitality Superteas – formulated with the goal of revolutionizing conventional organic tea through the infusion of a proprietary blend of artensial mushrooms with medicinal properties.

The company has also entered into a research and development Product Formulation with Drip Coffee Social Ltd. whereby Drip will infuse Champignon’s proprietary mushroom extract blend into a suite of cold brew coffee products and signature in-house formulations.

Through the partnership, Champignon and Drip Coffee will collaborate to formulate a suite of ready-to-drink cold brew coffees, as well as barista crafted hot beverage infused with Champignon’s heirloom mushroom-extract blend.

Under the terms of the agreement, Champignon will retain all intellectual property rights associated with the formulations produced under the agreement indefinitely.

Champignon plans to market and sell its mushroom-infused cold brew coffee blends through it’s e-commerce store, direct to consumer, as well as on the shelves of Drip Coffee’s flagship brick and mortar location.

The company said that adding this mushroom infused coffee to the existing product line will help the company compete more broadly in the industry and expand this previously untapped market niche.

Globally, the market for functional mushrooms was valued at US$5.8 billion in 2018, according to Avinash Desamangalam, the lead researcher for the food and agriculture department at market intelligence firm Mordor Intelligence.

The market is expected to grow 6.4 percent annually from 2019 through 2024, with China expected to be the largest producer and consumer.