The Cascadia Cucumber is a quarterly newsletter written by Cascadia Capital’s Health and Wellness group that outlines interesting subjects and up-and-coming products in the sector. Our goal is to provide the reader with insightful information regarding trending topics and recent transactions within the Health and Wellness space. This issue features the Cordyceps Mushroom, a natural medicinal mushroom that offers a wide range of health benefits to individuals of all ages.

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The Cascadia Cucumber is a quarterly newsletter written by Cascadia Capital’s Health and Wellness group that
outlines interesting subjects and up-and-coming products in the sector. Our goal is to provide the reader with
insightful information regarding trending topics and recent transactions within the Health and Wellness space.
WHAT’S HOT: CORDYCEPS MUSHROOM –
A SUPPLEMENT FOR EVERYONE
WHAT ARE CORDYCEPS MUSHROOM?
Cordyceps mushroom is a unique medicinal mushroom composed
of a rare combination of caterpillar and fungus, found in altitudes
above 14,000 feet in the mountains of China, Nepal, and Tibet. Due
to its composition, cordyceps mushroom has been proven as a
valuable source of phytonutrients (plant chemicals), creating an
array of therapeutic benefits that support good health.
Used by athletes, spiritual seekers, and health conscious
individuals, cordyceps mushroom, commonly consumed in the
form of a capsule or tea, is viewed as a truly unique supplement
due its overall health and wellness benefits, including, but not
limited to, providing an instant boost of energy, nourishing the
lungs, and supporting the liver and immune system.
HOW DID THEY GET HERE?
For decades, Chinese medical experts have used cordyceps
mushroom as a natural medicinal cure-all to heal the lungs, repair
the liver, assist the heart, support the kidneys, combat fatigue,
relieve pain, promote longevity, and improve sexual dysfunction.
However, the supplement gained worldwide recognition in 1993
when Chinese athletes broke multiple records with ease at the
World Track and Field Championships in Stuttgart, Germany. It was
reported that these athletes used cordyceps mushroom as part of
their training regime by consuming a cordyceps mushroom-based
drink after every training session. Since then, they have grown in
popularity for both hard-core athletes and recreational sports
enthusiasts, as a way to gain a competitive advantage and increase
overall athletic performance.
The Cascadia Cucumber
Your Quarterly Dose of Mindful Greens
Contents:
I. What’s Hot: Cordyceps Mushroom
II. Transactions of Interest
III. What to Look out for in 2018
IV. Recent Cascadia Consumer
Transactions
V. About Cascadia Capital
What’s Hot: Cordyceps Mushroom
Uses: Natural medicinal mushroom
that offers a wide range of health
benefits to individuals of all ages
Origin: Identified decades ago in the
Himalayan Mountains of Tibet by local
herdsmen
Method of Consumption: Liquid
extracts, tinctures, powders, and
capsules
Natural Cordyceps Mushroom:
Volume 1, Issue 1

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BENEFITS FOR ATHLETES
Cordyceps mushroom is becoming known as one of the best performance enhancing superfoods available today
due to its ability to boost oxygen delivery and ATP synthesis, a critical element for energy production. It has also
been demonstrated to lower levels of blood sugar by conserving glycogen in the liver and increasing oxygen
use. Additionally, it has presented the ability to boost levels of glucose-processing enzymes in the liver, which
makes more glucose available to muscles.
A study, presented at The ACSM annual meeting (June 2001) on elite athletes, reviewed the effects of cordyceps
mushroom on endurance performance parameters. The results showed that cordyceps mushroom
supplementation improves circulatory and metabolic effects during submaximal exercise in endurance-
conditioned athletes.
As the science behind, and overall awareness of, cordyceps mushroom becomes more mainstream, its use and
popularity are growing across a wide spectrum of athletes as a way to increase overall performance.
BENEFITS FOR ALL
Cordyceps mushroom has proven to provide a wide range of health benefits for the average consumer due to
its broad spectrum of health compounds, including vitamins E, L, B1, B2, B12 and K, and bio-active minerals, such
as copper, iron, magnesium, calcium, zinc, selenium, silicon, and nickel. Scientific studies in recent years suggest
that the consumption of cordyceps mushroom help to manage blood sugar levels, protect the heart, strengthen
the immune system, enhance libido, fight fatigue, and improve overall health. Here are some notable health
benefits offered by cordyceps mushroom consumption:
• Managing Blood Sugar Levels – Cordyceps mushroom has been shown to lower blood cholesterol as
well as triglycerides levels in the body;
• Improved Exercise Performance – A 2010 study showed that supplementation with cordyceps
mushroom extract for 12 weeks improved exercise performance and contributed to overall wellness in 20
healthy elderly adults;
• Increased Heart Health – Research suggests that patients given cordyceps mushroom were considerably
less likely to suffer heart failure, primarily due to its anti-inflammatory and antispasmodic properties,
which can prevent heart arrhythmias and other complications;
• Protecting Kidneys – Results from laboratory studies and clinical trials indicate that cordyceps
mushroom may play a potential protective role in kidney transplantation;
• Fighting Cancer – There have been direct correlations found between the consumption of cordyceps
mushroom and tumor size reduction. The shrinking of a tumor can help slow the spread of cancer. This,
combined with the antioxidant effects of cordyceps mushroom, helps to eliminate free radicals
throughout the body;
• Strengthen Immune System – Cordyceps mushroom stimulates the production of NK cells (natural killer
cells), which are one of the body’s first lines of defense against infection and illness;

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• Anti-Aging Properties – Cordyceps mushroom offer high concentrations of anti-aging compounds that
aid skin rejuvenation, elimination of dead or dying cells, and reduced appearance of blemishes, wrinkles,
and age spots; and
• Increased Libido – Evidence shows that cordyceps mushroom help to improve reproductive activity and
restore impaired reproductive function.
AVAILABILITY
With in-depth research and proven results, the popularity of cordyceps mushroom has soared in the broader
western world. As the popularity of cordyceps mushroom increases, so does access to them. Consumers can now
find the supplement online, at specialty retailers, and at some general big box retailers where it is sold in liquid
extracts, tinctures, powders, and capsules. Additionally, consumers can buy the whole cordyceps mushroom in
certain specialty stores, and consume them by adding it directly to soups, or brewing tea from the dried and
powdered fungi.
Quality Cordyceps can be found in products such as Doctor’s Best Ultra Cordyceps 750mg Veggie Caps, NOW
Foods Cordyceps 750mg Veg Capsules, and Madre Labs CafeCeps Organic Coffee with Cordyceps and Reishi
Mushrooms.
TRANSACTIONS OF INTEREST
On December 5th, 2017, Nestle Health Science announced its plan to acquire Atrium Innovations, Inc. for $2.3
billion. Is this a sign that big CPG companies recognize that times are changing and that having a brand in their
portfolio in the health and wellness space is a must? It could be the start of some changing times.
On September 26th, 2017, KKR completed the acquisition of a majority interest of Nature’s Bounty from The
Carlyle Group for $3.3 billion. According to NTN News, this transaction and the Atrium Innovations transaction,
along with all the significant deal flow witnessed over the past twelve months, made 2017 the biggest year on
record, in terms of acquisitions, for the vitamins and supplements sector.
What does this mean for 2018 and beyond? Time will tell, but the future looks promising for health and wellness
companies that offer healthy, efficacious products that are easy to access and consume, and are sold at a
reasonable price.

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WHAT TO LOOK OUT FOR IN 2018
The 38th annual Natural Products Expo West & Engredea Trade Show will be held from March 8th to March
11th at its usual Anaheim location. My bet is that the attendance this year surpasses the 80,000-plus attendees
of 2017.
The FitExpo Los Angeles was held from January 6th and 7th at the Los Angeles Convention Center. This was an
excellent show showcasing some fantastic health and wellness companies.
The next issue of the Cascadia Cucumber will focus on the importance of following the various requirements
for properly marketing and labeling dietary supplements.
If you are contemplating a capital raise or recapitalization in the Health & Wellness space, or if you just want to
talk about trends and valuations in the sector, we are here to help.
RECENT CASCADIA CONSUMER TRANSACTIONS
Cascadia’s Consumer Team consists of eight professionals with more than 50 years of collective consumer
investment banking experience having completed over 40 transactions since the beginning of 2010 with a
combined enterprise value in excess of $1.5 billion, including ten capital markets transactions and 30 M&A
advisory assignments.
Cascadia Cucumber 1.1

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ABOUT CASCADIA CAPITAL
Cascadia Capital is an investment bank serving middle-market clients globally. Cascadia's business is diversified
in terms of both the industries it covers and the range of services it provides. As a pure advisory firm, unlike other
investment banks, it is not conflicted by trading, lending, research or cross-selling business. For nearly two
decades, the firm has strived to deliver the best outcomes for its clients based on its transaction experience,
domain expertise and commitment to building long-term relationships. Cascadia always acts in the long-term
interests of its clients, and honors its position as a trusted advisor. For more information, visit the firm's website
at www.cascadiacapital.com.
Contact:
Phone: 323.486.8115
Email: ecoonrod@cascadiacapital.com
www.cascadiacapital.com
707 Wilshire Boulevard
Suite 4350
Los Angeles, CA 90017 Member FINRA/SIPC
Eric Coonrod, Senior Vice President