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The Good Shroom Co. had a Huge 16X revenue growth QoQ

The Good Shroom (TSXV: MUSH) owns a portfolio of brands, from traditional cannabis to beverage products. The Good Shroom is laser-focused on its line of Teonan beverages, which are quality and tasty beverages containing a dose of functional mushrooms and probiotics. The company faces well the bearish market and, even better, returned a solid +15% over the last 6 months. The recent update about its financial results is very positive, as proved by the 16X revenue growth quarter over quarter.

Company Overview

The Good Shroom (TSXV: MUSH) is a company involved in traditional cannabis and beverage products. The company also operates its Teonan beverages, containing a dose of functional mushrooms and probiotics. The Good Shroom aims to make the beverage routine (coffee, tea, etc.) useful for the body and mind by adding probiotics and mushrooms. But before we go any further, let’s define what probiotics are. Probiotics are live bacteria and yeasts beneficial for you, particularly your digestive system. Researchers are still trying to figure out how they work, but we already know they help balance your “good” and “bad” bacteria to keep your body working the way it should. Here is a type of probiotic where you usually encounter them: Lactobacillus. This may be the most common probiotic. It’s the one you’ll find in yogurt and other fermented foods. Different strains can help with diarrhea and may help people who can’t digest lactose, the sugar in milk. The FDA regulates probiotics as a food and not medication. The positive thing is manufacturers don’t have to prove their products are safe or that they work, unlike drug companies.

The Teonan line was born from the idea to provide drinks that are as good for the drinker as they are delicious. The company uses mushroom extracts supplied by a BC-based company called Nammex. This company has been the industry leader in providing pure, safe, and potent mushroom extracts for over three decades. About the products, they contain one daily dose per serving. As most studies investigating the effect of functional mushrooms typically use between 2000 – 4000 mg dry mushrooms per day, The Good Shroom took an average – of 3000 mg dry mushrooms.

The Good Shroom uses highly concentrated mushroom extracts, which allows the company to get the equivalent effect without needing to add so much powder to our beverages. Each of their drinks contains 300 mg of a 10:1 extract – the equivalent of 3000 mg of the dry fruiting body. Products are accessible online, and you access them by clicking here.

Board Overview

Eric Ronsse leads the company as CEO. He has over a decade of executive leadership and management experience in the food distribution, third-party logistics, and functional beverage sectors. Eric Ronsse is passionate about the functional food space and has been involved in the legal cannabis industry since its inception. As Cannabis QA, Nathalie Lebel leads the way. Nathalie has over 25 years of experience in pharmaceutical quality assurance, including 7 years in the cannabis industry. Divya Srinivasan is working as the Mushroom QA. Divya is an MSC Food Science graduate from McGill University with 6+ years of hands-on experience in food testing, formulation research, and quality assurance in food and beverage manufacturing and distribution operations.


The Good Shroom (TSXV: MUSH) reported on December 28 solid Q1 financial results, recording over 16X revenue growth quarter over quarter for the period ending October 31. The company generated $822.5k in sales revenue, including gross profit margins of $182k. Furthermore, The Good Shroom doesn’t have any debt obligations other than $40k due December 2023 to the government of Canada. The revenues are primarily generated within Quebec, but the board expects to get more Canadian market share. Cannabis product submissions have been made to the government of Alberta, Nova Scotia, and Newfoundland. The Teonan line continues growing and is now sold in over 250 grocery stores in North America, plus its online store.

“I recommend investors keep an eye on the upcoming quarterly results as I expect to continue growing revenues and reduce expenses. We continue growing our cannabis division in Quebec, but also expect to begin selling in other provinces in the coming months. Our mushroom beverage brand will be available in more US and Canadian grocery stores in the next 2 quarters as well.”

Eric Ronsse, CEO

Regarding the share structure, the company had 48.5M shares issued and outstanding (data from October 31). The company has $317k in cash for $1.5M in total assets. Regarding the stock price, it trades around $0.08 with a solid close on December 30, 2022, at a +14.29 increase. The stock price is far from its 52-week low at $0.015, and given the recent solid financial results, we should not see low pricing anymore.  

Bottom Line

The Good Shroom (TSXV: MUSH) offers a healthy line of cannabis and mushroom products. The company holds a substantial share structure, and its growth is positive. The company’s operations are currently primarily focused on Quebec. Still, once the company expands to other provinces, its products will generate more revenue, and its market cap will powerfully augment.

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