Hypha Labs pivots to psilocybin with new mushroom tech

Hypha Labs Inc. (OTC: DIGP), formerly known as Digipath, announced its transition from the cannabis industry to the emerging market of functional mushrooms, with a particular focus on psilocybin.

The company said it has developed a patent-pending bioreactor technology that aims to streamline the production of active ingredients found in these mushrooms. The decision to pivot from cannabis to psilocybin comes amid growing interest in the potential mental health applications of functional mushrooms.

“There are currently over 100 clinical trials underway that are showing great promise in helping people suffering from anxiety, depression, and PTSD, and other functional mushrooms are being studied for diabetes and memory,” the company said in a news release Monday.

Hypha Labs wants to address the market by providing a novel method for producing the active ingredients in a reliable and “side-effect-free” manner.

The company said its bioreactor technology enables the production of “pure, consistent, and measurable” doses of active ingredients in an easily digestible form, catering to both consumer and commercial large-scale applications.

According to Hypha Labs, the firm’s bioreactors can produce the desired ingredients in just 8-10 days, much faster than traditional methods that can take up to 10 weeks and often result in variable dosing and side effects.

Hypha Labs plans to offer a variety of mycelium varietals for use in its proprietary bioreactors on a subscription basis, in order to make the technology more accessible to a wider audience. The company believes that the approach positions them to capture a significant share of the growing functional mushroom market, particularly in the psilocybin space.

The company said it will present its technology to investors and industry experts at the upcoming Planet MicroCap Showcase in Las Vegas on Wednesday, May 1.