Havn recently entered into a definitive agreement to acquire Spore Life Sciences, a revenue-generating wellness brand focused on functional mushroom formulations. It currently has a consumer base of more than 110,000 people, as well as 40,000 subscribers.
Moore said the decision to acquire Spore Life Sciences was a long time in the making: “We’ve talked over the last two years about our desire to entire the U.S. market with our nutraceuticals or nutritional supplements,” he said. The all-stock deal enables Havn to “accelerate that plan and acquire a business that’s already in revenue without having to spend millions of dollars in cash to build it.”
The CEO said the market for the total nutritional supplement industry is in the billions of dollars, while functional mushrooms are the fastest growing segment.
“Even with their volume, Spore did a total of $9 million, $5 million of which was done in the fourth quarter,” said Moore, acknowledging that the company currently has a very small percentage of the market share.
The nutritional supplement business will hopefully provide Havn with an opportunity to become cashflow positive within the next 12 months, according to the CEO, with help from its subscription based recurring revenue model.
Moore noted two other companies with similar models to Havn, pursuing both the cultivation of psilocybin mushrooms as well as a nutritional supplements: a private company named Versio, and a public company named Filament Health (NEO: FH) (OTCQB: FLHLF).
“Competition keeps us sharp, and is ultimately good for the market,” he said.
For investors who might be afraid that functional mushroom supplements don’t have the revenue potential as psilocybin, Moore said that both are business that support cognitive health.
“Psychedelics are for acute mental health issues. The functional mushrooms are for less acute issues, but nonetheless important, whether that’s for anxiety, or sleep, or immunity,” he said. “Our mission statement is all around cognitive health and human performance, and both sides of the business support that.”
Watch the interview above to hear about the SKUs offered through Spore Life Sciences, and Havn’s psilocybin resaerch in Jamaica.