VANCOUVER, British Columbia, August 27, 2020 – Champignon Brands Inc. (CSE: SHRM) (the “Company” or “Champignon”) is expanding its rapid-onset treatment service for major depressive disorder (“MDD”). Champignon will offer esketamine for the treatment of adults with MDD at its flagship clinic starting in September 2020. Ketamine was declared a breakthrough treatment for depression by the US Food and Drug Administration (“FDA”). In May 2020, Health Canada approved esketamine for the treatment of MDD.
Champignon’s clinic, the Canadian Rapid Treatment Centre of Excellence (the “CRTCE”) is Canada’s first multidisciplinary community clinic offering rapid-onset treatments for depression and is expected to be the first of its kind to provide this novel treatment for depression in Canada. The CRTCE is located in Mississauga, Ontario.
Depression is a leading cause of reduced income in Canada due to workplace disability: adults with MDD lose almost one month of work per year.[1] Furthermore, depression, when co-occurring with heart disease, diabetes and other major chronic conditions, can worsen the course of these conditions and raise the risk for premature death.2
“The availability of esketamine at the CRTCE provides tremendous opportunity for adults across Canada affected by treatment-resistant depression to receive an effective, well-tolerated treatment. Moreover, this novel treatment works relatively faster than most conventional treatments for depression,” commented Dr. Roger McIntyre, Champignon’s Chief Executive Officer. “Esketamine has also been observed to help people with MDD when conventional treatments have been insufficient. This provides hope for people affected by MDD to have their symptoms improved and begin to function better again in their lives.”
Continuous Disclosure Review
As a further update, the Company continues to work with the British Columbia Securities Commission (“BCSC”) to complete its continuous disclosure review. The review relates to the Company’s disclosure obligations since it became a reporting issuer on February 6, 2020, and includes a review of the disclosure surrounding certain recent acquisitions completed by the Company. The Company continues to fully cooperate with the BCSC to assist in completion of the review in a timely fashion.
In connection with the review, on August 26, 2020, the BCSC revoked the cease trade order previously issued against the Company on June 19, 2020, following the filing of business acquisition reports in connection with the acquisitions of Artisan Growers Ltd., Novo Formulations Ltd. and Tassili Life Sciences Corp. Concurrently with the revocation, the BCSC issued a replacement order which will remain in effect pending the filing of an amended material change report in connection with the acquisition of AltMed Capital Corp.
Interim Financial Statements
The Company also announces it will rely on the blanket relief granted by the Alberta Securities Commission Blanket Order 51-517, Temporary Exemption from Certain Corporate Finance Requirements (“BO 51-517”), BC Instrument 51-515, Temporary Exemption from Certain Corporate Finance Requirements (“BCI 51-515”), and Ontario Instrument 51-502, Temporary Exemption from Certain Corporate Finance Requirements (“OI 51-502”), in respect of the filing of its interim financial statements for the period ending June 30, 2020, including the accompanying management’s discussion and analysis and related CEO and CFO certifications (collectively, the “Required Filings”).
The Company is working to complete the Required Filings, and addressed comments raised by the BCSC in the course of their disclosure review, within the time period of the extension. In the interim, all shareholders, including members of the Company’s management and other insiders are subject to a cease trade order issued by the BCSC. The Company confirms that since the filing of its interim consolidated financial statements for the period ended March 31, 2020, there have been no material developments other than those disclosed through news releases or through disclosure filings completed by the Company on SEDAR (www.sedar.com).
[1] The effect of bipolar I disorder and major depressive disorder on workforce function
McIntyre, R S, MD, FRCPC;Wilkins, K, MSc;Gilmour, H, MA;Soczynska, J K, HBSc;Konarksi, J Z, MSc;M… Chronic Diseases in Canada; 2008; 28, 3
2Economic and humanistic burden associated with noncommunicable diseases among adults with depression and anxiety in the United States. Armbrecht E., Shah A., Schepman P., Shah R., Pappadopulos E., Chambers R., Stephens J., Haider S., McIntyre R. S. J Med Econ. 2020;1-11
ON BEHALF OF THE BOARD OF DIRECTORS
Dr. Roger McIntyre
Chief Executive Officer
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Forward-looking Information Cautionary Statement
Except for statements of historic fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to delays or uncertainties with regulatory approvals, including that of the CSE. There are uncertainties inherent in forward-looking information, including factors beyond the Company’s control. There are no assurances that the business plans for Champignon Brands described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company’s filings with Canadian securities regulators, which are available at www.sedar.com.