The Good Shroom Co Inc. Provides Market Update and Announces Grant of Stock Options

MONTREAL, Feb. 4, 2025 /CNW/ - The Good Shroom Co Inc. (TSXV: MUSH) ("The Good Shroom Co" or the "Company"), which will be changing its name to Mercanto Holdings Inc., pending final TSX approval, an emerging cannabis and wellness house of brands, is pleased to provide an update on its recent market developments and announce the grant of stock options in accordance with TSX Venture Exchange requirements.

Quebec Market Share Expansion

The Company has received preliminary approval for four new products as part of Quebec's bi-annual cannabis submission process. The approved products include two hash products, one infused joint, and one CBD capsule product. The CBD capsule product is already selling at present, as The Good Shroom Co was offered the listing following a competitor's bankruptcy, which left a supply gap in the market, opening the door for the Company to establish itself as a dominant player in the category. This submission confirms that the Company maintains its listing for the CBD capsule product.

This brings The Good Shroom Co's total product portfolio in Quebec to approximately 30 products, including both in-store and online offerings. While this product approval is not a major milestone, it represents another step in the right direction for the Company. This is a game of inches, and this approval is a meaningful win as it is expected to:

• Strengthen the Company's market share in the hash category,
• Diversify its exposure in the infused joint segment, and
• Establish The Good Shroom Co as the leading provider of CBD capsules in the province.

These new products are scheduled to launch in April 2025 (end of Q3 fiscal 2025), with their full sales impact expected to be reflected in Q4 2025. The addition of these four approved products is expected to contribute to an overall stronger product mix and enhanced category performance.

THC-Infused Pouch Expansion

The Good Shroom Co continues to expand its innovative THC-infused pouch offerings under the DYP and Deckies brands.

• DYP's Alberta launch has been met with strong demand, with multiple purchase orders fulfilled to date and increasing sales velocity.
• Deckies launched in Ontario last week, receiving positive feedback from consumers and retailers alike.

Q2 financial results will include initial sales contributions from DYP in Alberta and Deckies in Ontario, while the full impact of sales acceleration is anticipated in Q3 and beyond. Additionally, The Good Shroom Co is pleased to announce that these products have been submitted to the New Brunswick cannabis market upon request and that the Company is actively making inroads into medical cannabis platforms across Canada.

Grant of Stock Options

In accordance with TSX Venture Exchange policies, the Company announces that it has granted stock options to various directors, officers, and key personnel. These options are exercisable at a price of $0.085 per share, based on the market close on February 3, 2025, and will expire on February 3, 2033. They are granted under the following terms:

• 150,000 stock options granted to directors and officers of the Company, with 50% vesting immediately and the remaining 50% vesting on February 3, 2026.
• 75,000 stock options granted to Jerry Chen, Quality Assurance Manager, under the same conditions.
• 30,000 stock options granted to Karl McVey, freelance website designer, under the same conditions.

Looking Ahead

The Good Shroom Co remains committed to expanding its product offerings, increasing market share, and strengthening its position in key cannabis segments. The Company continues to explore strategic opportunities to enhance distribution channels and drive sustained revenue growth.

About The Good Shroom Co Inc.

The Good Shroom Co Inc. (TSXV: MUSH) is a publicly traded cannabis and wellness company focused on innovative product development and market expansion across Canada. With a diverse portfolio of high-quality cannabis products, the Company is dedicated to delivering superior consumer experiences while driving shareholder value.

Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of applicable securities laws. These statements reflect The Good Shroom Co Inc.'s current expectations regarding future events, including but not limited to, product launches, sales performance, market expansion, regulatory approvals, and overall business strategy. These statements are based on management's beliefs, assumptions, and expectations, which may prove to be incorrect. Actual results may differ materially from those expressed or implied in forward-looking statements due to various risks and uncertainties, including changes in market conditions, regulatory developments, operational challenges, competition, and the ability to secure necessary resources.

The forward-looking statements contained in this press release are made as of the date hereof, and The Good Shroom Co Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Investors are encouraged to review the Company's regulatory filings on SEDAR+ for additional risk disclosures.*

SOURCE Good Shroom Co Inc. (The)

For further information, please contact: Eric Ronsse, CEO, The Good Shroom Co Inc., Email: [email protected], Website: www.mercantoholdings.com