The Good Shroom Co Inc. announces Corporate Name Change to Mercanto Holdings Inc., provides a Market Expansion Update and adoption of New Stock Option Plan

MONTREAL, Jan. 29, 2025 /CNW/ - The Good Shroom Co Inc. (TSXV: MUSH) ("TGSC" or "the Company"), an emerging cannabis company with a focus on innovation, announces that the Company has adopted a new "fixed up to 20%" stock option plan (the "New Fixed Option Plan"). The New Fixed Option Plan received conditional TSX Venture Exchange ("TSXV") approval and shareholders of the Company approved the New Fixed Option Plan at the Company's Annual General Special Meeting of the Shareholders' held on January 29, 2025 (the "Meeting").

The Company is also pleased to announce that shareholders approved the change of its name to "Mercanto Holdings Inc." (the "Name Change") at the recent Meeting. The Company's trading symbols on the TSXV will remain unchanged. As part of the Name Change, the common shares of the Company have been assigned new CUSIP 58757P107 and ISIN CA58757P1071 numbers.

The Company would like to thank its shareholders for their continued support, as all matters that were put before them at the Meeting were approved. TGSC is pleased to announce the re-election of Eric Ronsse, Franck Aton, Steve Saviuk and Michel Dahan, to its board of directors (the "Board").

Also, at the Meeting, shareholders appointed Raymond Chabot Grant Thornton LLP as TGSC's auditor for the ensuing year.

For more information on these and other matters voted on at the Meeting, see TGSC's information circular dated December 31,2024 that is available on TGSC's SEDAR profile at www.sedarplus.ca.

Market Expansion Update

TGSC is pleased to provide an update on its national expansion strategy. The innovative product, DYP's THC-infused pouches, have been well received in Alberta. Multiple purchase orders have been successfully fulfilled, and sales are ramping up steadily. Results from Alberta will begin to reflect in the Company's Q3 performance and subsequent quarters.

In addition, TGSC is launching a new THC-infused pouch brand, Deckies, in Ontario this week. The Company anticipates adequate traction in this market, with the sales results also expected to contribute positively to Q3 and beyond. As the national expansion progresses, the Company will continue submitting its THC-infused pouches across the country in response to product calls. With the Ontario and Alberta launches, the foundation for broader market growth is firmly underway.

Quebec Market Update

TGSC anticipates receiving the results of its submissions in Quebec on Friday, January 31, 2025. The outcomes of these submissions will significantly influence the Company's expansion in this market, with the results expected to reflect in late Q4 and into fiscal 2026, beginning August 1, 2025.

New Fixed Option Plan

The New Fixed Option Plan, which replaced the Company's "rolling up to 10%" stock option plan, was adopted to comply with Exchange Policy 4.4— Security Based Compensation ("Policy 4.4") which was amended on November 24, 2021.

The purpose of the New Fixed Option Plan is to give to directors, officers, employees, management company employees, consultants and Eligible Charitable Organizations (as such term is defined in Policy 4.4) of the Company and its subsidiaries (collectively "Eligible Persons"), as additional compensation, the opportunity to participate in the success of the Company by granting to such Eligible Persons stock options ("Options"), exercisable over a period of up to ten (10) years as determined by the Board, to buy shares of the Company at a price not less than the market price prevailing on the date the Option is granted less applicable discount, if any, permitted by the policies of the TSXV and approved by the Board. Up to 10,154,937 Options are issuable under the New Fixed Option Plan.

Additional details regarding the Fixed Option Plan are contained in the Company's information circular dated December 31, 2024, which has been filed on www.sedarplus.ca under the Company's profile.

About The Good Shroom Co Inc.

The Good Shroom Co Inc. (TSXV: MUSH) is an emerging cannabis company that sells a variety of traditional cannabis products and innovations, with its primary market in Quebec but expanding nationally. For more information, visit www.mercantoholdings.com.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

SOURCE Good Shroom Co Inc. (The)

For further information: Eric Ronsse, Chief Executive Officer, Email: [email protected]