Mr. Gareth Birdsall reports

CHAMPIGNON EXPANDS PRECLINICAL PIPELINE WITH MEASURED PSILOCYBIN DOSAGES STUDIES AT UNIVERSITY OF MIAMI

Champignon Brands Inc. has entered into a definitive agreement to acquire Tassili Life Sciences Corp., expanding the company's preclinical trial pipeline as well as its aggregation of broad intellectual property (IP) related to the development of novel psychedelic therapeutics and their delivery systems, targeting multiple pathological psychological diseases.

Tassili, in partnership with a multidisciplinary team of scientists and physicians at the University of Miami, is working to develop effective psilocybin-based therapeutics for the treatment of mild traumatic brain injuries (mTBI) and/or posttraumatic stress disorder (PTSD).

Trials under way

Under a collaborative research agreement with the University of Miami's Miller School of Medicine (U of M), Tassili will conduct preclinical studies and eventual human clinical trials, with the objective of demonstrating safety and efficacy of the combination of psilocybin and cannabidiol in treating mTBI with PTSD or stand-alone PTSD. Final results are expected in 2021.

Under the terms of the agreement with U of M, Tassili will retain all exclusive rights to inventions, data and IP discovery resulting from the studies, which are being led by Dr. Michael Hoffer, professor of otolaryngology and neurological surgery at the University of Miami's Miller School of Medicine.

"Mild traumatic brain injury, especially concussion, is a significant cause of morbidity worldwide," said Dr. Hoffer. "What many do not realize is that TBI often occurs alongside PTSD. Up to 40 per cent of people impacted by mTBI, a head injury causing a temporary change in mental status or consciousness, or TBI in general, also suffer from PTSD. This combination of mTBI and PTSD is even more common in U.S. military members and presents a vast patient population to service and potentially heal with our novel therapeutics under development."

Psilocybin patent portfolio

Tassili has filed four provisional patents, one of which relates to its continuing study with the University of Miami. In collaboration with university research institutes, Tassili intends to demonstrate that the clinical and physiological effectiveness in PTSD and obsessive-compulsive disorder (OCD) is enhanced by timely measured dosages of psilocybin and cannabidiol, with superior clinical results measured by objective outcomes.

Management's vision is to administer a proven and proprietary combination of psilocybin and CBD in certified drug as well as psychotherapeutic clinics once human clinical trials are completed and the combination is approved by applicable regulatory agencies.

Management also believes that increased specificity to ensure approved, appropriate, standardized and dignified methods of treatment will result from novel delivery systems suiting recovery solutions to specific indications. Three of the company's provisional patents relate to this important part of the drug-to-patient relationship.

George Scorsis, chairman of Tassili, stated: "Our development program is championed by the University of Miami, a major U.S. research institution with a worldwide reputation in TBI research and treatment. Working with the University of Miami, we aim to shift the mainstream perceptions about psychedelics by establishing the scientific underpinnings of the two compounds' medical benefits and then developing a prescription-based therapeutic medicine for this combined disorder and a number of other disorders on the horizon, such as obsessive-compulsive disorder."

Terms

Under the terms of the agreement, Champignon will acquire 100 per cent of the issued and outstanding shares of Tassili for total consideration of 16 million common shares in the capital of the company. A finder's fee is applicable to this transaction.

About Champignon Brands Inc.

Champignon Brands is a research-driven company specializing in the formulation of a suite of medicinal mushroom health products, as well as novel ketamine, anesthetics and adaptogenic delivery platforms for the nutritional, wellness and alternative medicine industries.

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