Hypholoma sublateritium (the brick cap) is a widely distributed mushroom and it can be found growing on hardwood trunks in the fall. This wood-decay fungus is receiving increasing attention from commercial growers because it is usually considered edible and is suited for cultivation. Hypholoma sublateritium is a close relative of Stropharia rugosoannulata (the wine cap) in the Strophariaceae (Agaricales), which is also grown for food production. Like many other saprotrophic fungi in the Agaricomycotina, Hypholoma sublateritium has been scrutinized for pharmacologically active compounds that are of general interest. For example, clavaric acid isolated from H. sublateritium is known to be a potent anti-tumor agent. The genome project of H. sublateritium will provide considerable insight into the biosynthesis of economically important secondary metabolites that are relevant to medical research.