Havn Life Buys Subscription-Based Functional Mushroom Co. With Significant US Consumer Base

Biotech company Havn Life Sciences Inc. HAVN HAVLF is purchasing functional mushroom wellness brand Spore Life Sciences Inc.

The Deal Details

Under the deal between HAVN Life, its newly incorporated, wholly-owned subsidiary, 1000053494 Ontario Inc. and Spore, HAVN Subco and Spore agreed to merge and continue as one corporation.

The holders of common shares of Spore will receive an aggregate of 95 million common shares of the HAVN Life for the Spore Shares issued and outstanding prior to closing.

Moreover, HAVN Life will receive one common share of Amalco for each common share of HAVN Subco held by HAVN Life.

In addition, in consideration of the issuance of the HAVN shares, Amalco agreed to issue to HAVN Life one Amalco share for each HAVN share issued.

HAVN Life 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 deal upon achieving several milestones.

What It Means For Havn Life

HAVN Life CEO Tim Moore said the deal is set to strengthen the company's position as "a leader in brain health-focused nutritional supplements."

Toronto-based Spore Life Sciences Inc. is a wellness brand focused on functional mushroom formulations.

Co-founded by CEO and president Michael Zavet, Spore boasts a significant U.S. consumer base of more than 110,000 customers, nearly 40,000 subscribers, resulting in year-to-date revenues as of the end of November 2021 of nearly CAD$8 million and current sales of more than $1 million per month.

What's Next?

Zavet said Spore is "excited to support HAVN's psychedelic endeavors through our digital marketing channels and large customer base."

The completion of the acquisition will bring in nine additional formulations under the HAVN Life retail brand, adding to its growing selection of natural health products that support overall health and cognitive function.

HAVLF Price Action

HAVN Life Sciences' shares traded 11.73% higher at $0.14 per share at the time of writing on Monday morning.

Photo: Courtesy of Mari-Liis Link on Unsplash