Pure Extracts (CSE: PULL) has signed a letter of intent for the supply of psychedelic mushroom biomass. Announced this morning, the company revealed that it will be working with that of ShroomBloom Labs to source the biomass.

The letter of intent outlines that ShroomBloom, a BC-based mushroom cultivator, will provide Pure with that of organically grown Psilocybe Azurescens mushrooms. The mushroom, which is more commonly referred to as Azures, are one of the most potent species of psilocybin mushrooms, and contain up to 1.8% psilocybin, 0.5% psilocin, and 0.4% baeocystin on a dry weight basis.

ShroomBloom is notable in that they reportedly use a unique growing method that utilizes a sustainable forest product, while combining a biotech R&D program to use AI to industrialize the cultivation process.

Under the terms of the arrangement, Pure Extracts is to receive preferential access to ShroomBloom’s crops, while receiving what is referred to as “most favoured nation pricing.” The closing of the arrangement is subject to both firms receiving a dealers license from Health Canada.

Pure Extracts last traded at $0.51 on the CSE.

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