Psilocybin Service Center, The Sacred Mushroom, Experiencing Negative Effects

The company behind The Sacred Mushroom, an expansive 11,000-square-foot psilocybin retreat promising fun experiences for guests and lucrative returns for investors, has admitted to grappling with financial constraints that are forcing a reevaluation of its operations. Kaya Holdings Inc. recently disclosed in a filing with the U.S. Securities and Exchange Commission that due to capital limitations, the company had to halt employee payroll as early as April 2025. As a result, Kaya is currently reassessing the functional framework of The Sacred Mushroom to potentially restructure its setup for enhanced revenue generation.

Situated in Boca Raton, Florida, Kaya introduced The Sacred Mushroom on the seventh floor of a building in downtown Portland’s evolving Old Chinatown locale back in August. The retreat was designed to provide a unique offering among psilocybin service centers – establishments licensed by the state that supervise clients during psychedelic experiences. While most service centers concentrate on mental health concerns, The Sacred Mushroom stood out by incorporating recreational elements tailored for events like corporate retreats, Halloween celebrations, and even the Super Bowl.

Despite its innovative approach, financial performance data shows that The Sacred Mushroom has yet to resonate with consumers. Kaya’s revenue figures for 2024 totaled a mere $7,134, accompanied by a staggering loss of $2 million. Expressing its distinction as the first publicly traded organization to operate a licensed psychedelic therapy facility in the United States, Kaya acknowledged in SEC filings that while its shares have been publicly traded, they lagged behind the broader stock market, fluctuating between 3 and 4 cents per share.

Kaya’s business endeavors in the realm of psilocybin are relatively new, with its origins tracing back to the cannabis market. Established in 2014, Kaya launched its cannabis sales in Oregon before expanding into Greece. Woolen the cannabis market faced saturation, Kaya proactively pivoted towards psilocybin, necessitated by the tepid performance of their cannabis sector. The company’s statement notes, “Legal marijuana sales have failed to yield substantial revenue streams, particularly due to the absence of federal legalization. Consequently, Kaya transitioned its focus towards establishing a psilocybin therapy and treatment center in Portland, Oregon, following the recent legalization of such treatments.”

While Kaya’s adaptation to the evolving market seemed prudent, the challenges within the psilocybin industry are immense, especially for service centers. Mandated by state regulations, service centers are obligated to pay a substantial annual licensing fee of $10,000, in addition to the installation costs of elaborate security camera systems. The stringent requirements have led to the closure of several service centers, including the Journey Service Center, which ceased operations in March 2024.

According to the Oregon Health Authority, as of May 5, a total of 26 service centers had obtained licenses to function, while three service licenses had lapsed, and three others had been relinquished. Erica Heartquist, a spokeswoman for the Oregon Health Authority, cited various reasons prompting operators to surrender licenses, including the lack of clientele and formidable hurdles such as unavailability of health insurance coverage, banking limitations, liability insurance issues, and challenging property acquisitions owing to complex zoning laws and local restrictions.