Emerging Markets Report: A Milestone for Mycelium

Rhea-AI Summary

A significant development for Hypha Labs (FUNI) has emerged regarding the DEA's position on mycelium transportation across state lines. The DEA has confirmed that mycelium, the inactive root structure that develops into mushrooms, can be legally shipped interstate, except for three states. This regulatory clarity benefits Hypha Labs' business model, which centers around their patent-pending Micropearls device - a Keurig-like machine for home mushroom cultivation. The system allows users to produce mushroom ingredients in an 8-day cycle using cartridges and AI technology. Additionally, New Mexico has recently passed legislation allowing psilocybin use, potentially expanding Hypha's market opportunities. This development mirrors the early stages of cannabis legalization, suggesting a potential shift in the mushroom industry's regulatory landscape.

Positive

• DEA's favorable position on interstate mycelium shipping enables broader market access
• New Mexico's legalization of psilocybin opens new market opportunities
• Patent-pending technology offers innovative home cultivation solution
• Simplified 8-day production cycle with AI integration

Negative

• Three states still restrict interstate mycelium shipping
• Limited national news coverage of DEA's position may slow market awareness
• Regulatory environment still uncertain compared to cannabis industry

Underreported D.E.A. Letter and Policy Position Could be a Game Changer for Mushroom Enthusiasts

An Emerging Markets Sponsored Commentary

ORLANDO, Fla., May 12, 2025 (GLOBE NEWSWIRE) -- At the Emerging Market Report we are comprised of a team of veteran journalists, authors, former stock brokers, financial professionals, and unabashed opportunists who all come together to publish these tidy missives on our client profiles. We are constantly searching for impactful news that could be gamechangers for the Companies we cover.

And we sure missed a big piece.

So did just about everybody else.

That big piece could be a major catalyst for Hypha Labs (OTCQB: FUNI) which makes the first at-home and commercial patent-pending mushroom ingredient maker of its kind. The elevator pitch is that Hypha Labs is to mushrooms as the clever Keurig was, is, to coffee. Massive potential disruptor in a massive market.

Hypha’s story is already a game changer as it is going to allow the soccer mom at home to make her preferred mushroom ingredient in a simple eight-day cycle. Pop in a cartridge, scan the bar code, wait eight days and enjoy the magic of the mushroom.

Total privacy, no more growing ‘shrooms in animal feces.

But the mushroom industry is a decade or more behind the Emancipation of Cannabis. That cannabis revolution has almost completely come already with weed available most everywhere and a reasonable expectation that the government will change the arcane way it is classified/scheduled at the federal level.

The cannabis movement started simply enough; some vocal folk argued the medicinal benefits AND the economic benefits to states that would listen and states started to go green. Once a few states implemented pro-Cannabis legislation they provided good working test market examples for other states to see that there wasn’t a new filming of Reefer Madness on the streets and there were indeed many a cannabis driven dollar going into the state coffers that could be used for things like better schools and roads.

I’ve buried the lead here but then again, it’s been buried for a long, long time. Don’t kill the messenger.

Here’s the buried bombshell:

The Drug Enforcement Agency (DEA) appears to have taken a firm position that mycelium is ok to ship across state lines, although there are three states which currently don’t allow mycelium to be shipped across state lines. Mycelium is the inactive root-like structure which later becomes a mushroom when it begins to fruit, which is what happens when it is fed nutrients.

That’s pretty good news if you’re a company like Hypha Labs that will ship mycelium across eligible state lines once the retail roll-out of the Micropearls machine goes live. As described, Hypha sends you mycelium and based on your desires and a little A.I. you set your eight day harvest to whatever mushroom crop you’re feelin’.

Here are two sources for the D.E.A.’s position, which of course, come from cannabis sources who know what this means for the mushroom. One has an actual letter from the D.E.A. to the inquiring attorney way down at the bottom of the page. Read that.

Click on either headline to read the coverage:

DEA CONFIRMS PSYCHEDELIC MUSHROOM SPORES ARE LEGAL

DEA Confirms That Psychedelic Mushroom Spores Are Federally Legal Prior To Germination (DEA letter at the bottom.)

What is absolutely bizarre is we can find ZERO national news coverage other than these industry blogs. And we are good at Googling.

This means you are among the very few who knows about the milestone moment for mycelium and mushrooms and what an absolute gamechanger it is for Hypha Labs and their magical Micropearls.
Editor’s Note: As this article was being prepared for release, breaking news from New Mexico warrants mention. The state’s governor has signed a bill allowing for psilocybin use in the state. As indicated in this release from Hypha, this is a massive step forward to acceptance and a rapidly expanding market for Hypha Lab’s revolutionary Micro Pearls device.

More on Hypha here.

https://www.hyphalabs.com/#watch

We intend to cover Hypha Labs for the next couple months at minimum and to closely track their development and execution of their business model.

If you see what we see, we suggest you add the ticker “FUNI’ to your watchlist and take a moment to review the Company’s Investor Presentation at the following link:

www.hyphalabs.com/deck

About The Emerging Markets Report:
The Emerging Markets Report is owned and operated by Emerging Markets Consulting (EMC), a syndicate of investor relations consultants representing years of experience. Our network consists of stockbrokers, investment bankers, fund managers, and institutions that actively seek opportunities in the micro and small-cap equity markets.

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Must Read OTC Markets/SEC policy on stock promotion and investor protection

• https://www.otcmarkets.com/learn/policy-on-stock-promotion
• https://www.otcmarkets.com/learn/investor-protection
• https://www.sec.gov/news/press-release/2017-79
• https://www.sec.gov/oiea/investor-alerts-bulletins/ia_promotions.html

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We may purchase Securities of the Profiled Company prior to their securities becoming publicly traded, which we may later sell publicly before, during or after our dissemination of the Information, and make profits therefrom. EMC does not verify or endorse any medical claims for any of its client companies. The Company’s external Investor Relations firm, Integrity Media Inc, has contributed significantly to this report and holds or is owed six-million shares through a current or previous service agreement.

EMC has been paid $50,000 by Hypha Labs on its own behalf for various marketing services including this report. EMC does not independently verify any of the content linked to this editorial. Please see our full disclaimer.

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FAQ

What is the DEA's current position on mycelium shipping for FUNI stock?

The DEA has confirmed that mycelium can be legally shipped across state lines, except for three states, which benefits Hypha Labs' (FUNI) business model for their Micropearls device.

How does Hypha Labs' (FUNI) Micropearls device work?

The Micropearls device works like a Keurig for mushrooms, using cartridges and AI technology to produce mushroom ingredients in an 8-day cycle from mycelium.

What impact does New Mexico's psilocybin legislation have on FUNI?

New Mexico's legalization of psilocybin use represents a significant market opportunity for Hypha Labs (FUNI) and indicates potential broader regulatory acceptance.

How does FUNI's business model compare to the cannabis industry evolution?

FUNI's situation mirrors the early stages of cannabis legalization, with gradual state-by-state acceptance and potential federal policy changes, though the mushroom industry is about a decade behind.