What Are Functional Mushrooms?

Most people think of white buttons at the grocery store when they think of mushrooms, but in reality, there are hundreds of different kinds of mushrooms. Functional mushrooms—like functional foods and beverages—are mushroom varieties that provide a health benefit, ranging from run-of-the-mill vitamins and minerals to important nutrients, including selenium, potassium, riboflavin, niacin, proteins, and fiber.

As with cannabis and other plant-based medicines, the beneficial properties of functional mushrooms can be extracted into a wide range of formats. These formats provide patients and consumers with different product options, improved bioavailability and greater consistency, which opens the door to a range of medical and consumer use possibilities.

Let’s take a closer look at functional mushrooms, how extraction plays a role in product development and how Pure Extracts Inc. (CSE: PULL) (listing pending) plans to capitalize on the space.

Functional mushrooms provide a wide range of potential health benefits that researchers are only starting to understand. While some have become popular superfoods, others are an important source of vitamins for supplements.

Some popular functional mushrooms include:

• Reishi:  a Traditional Chinese Medicine ingredient that supports restful and healthy sleep, reduces stress and boosts the immune system.
• Chaga: rich in antioxidants that could help strengthen the immune system—it was even used as a coffee ration in World War II.
• Shiitake: a widely known superfood with nine amino acids and a diverse range of important vitamins and minerals.
• Oyster mushrooms: contain beta-glucans that could improve cholesterol and blood sugar markers, as well as boost the immune system.
• Trumella: a common source for plant-based vitamin D as it contains more of the vitamin than any other known food source.

Psilocybin has become one of the most popular mushrooms following the movement to legalize psychedelics across several states and some countries. Over the past couple of years, researchers found that the mushroom’s psychedelic properties could have wide ranging implications across psychology and psychiatry practices targeting mental illnesses.

Click here to learn more about investing in mushroom extraction technology

Many of the world’s most popular medicines originated from plants—specifically, plants in the Amazon rainforests. Of course, modern medicine doesn’t typically involve consuming or smoking exotic plants—with the exception of medicinal cannabis use. The beneficial properties are extracted into safe and consistent formats that physicians can prescribe.

Vitalis Extraction Technology – Source: Vitaliset

The same is true for over-the-counter supplements that extract beneficial properties from plants and other sources and combine them into a more palatable format. While supplements aren’t subject to as much regulation, extraction can help them meet FDA guidelines for safe production and an improved shelf life compared to the original formats.

There are many different extraction methods used depending on the plant or input source, but CO2 extraction has become one of the most effective modern methods. When pressure is applied to CO2, the gas turns into a liquid that can be used as a very inert, safe, liquid solvent to extract oils from plant biomass, such as mushrooms, hemp and cannabis.

Click here to learn more about investing in mushroom extraction technology

Functional mushrooms are experiencing a renaissance fueled by interest in psilocybin for the treatment of mental health disorders. While there are a growing number of cultivators, investors may want to take a closer look at the extractors that are focused on functional mushrooms as potential opportunities given their innovative business models.

Pure Extract Technologies Inc. – which plans on going public on the Canadian Securities Exchange (CSE) in Q3 of this year using the symbol “PULL” – has built an EU-GMP compliant extraction facility in British Columbia with an initial focus on extracting cannabis and long-term plans to extract mushrooms. Extracts in both categories are expected to see tremendous growth over the coming years.

The business model is compelling for investors. After signing agreements with Licensed Producers, the Company either charges a toll for extraction services or produces white-label products on behalf of other companies, creating very little overhead and predictable, recurring revenue with attractive margins.

While the Company’s initial business will come from tolling and white labeling, Pure Extracts anticipates creating in-house brands that will benefit from the ready supply of biomass from Licensed Producers and its in-house extraction (i.e., at a lower cost). These dynamics could create an attractive business line in the future.

Functional mushrooms are quickly becoming a preferred health food and potential source of treatment options for mental health disorders. While there are a growing number of companies focused in the space, investors may want to take a look at extraction providers, such as Pure Extract Technologies Inc. (CSE: PULL), given its strong business model and unique focus.

For more information, visit the company’s website or download their investor presentation.

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About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.