Toronto-based company Red Light Holland announced on March 19th, 2021, that its wholly-owned subsidiary, RLH Netherlands B.V. has successfully purchased SR Wholesale B.V., “one of the Netherlands’ premiere distributors for quality psychedelic truffles” as per the press release. SR Wholesale reported revenue of $2.44 million in 2020.
In addition to its psylocibin truffles — sold under the name ‘iMIcrodose’ — SR Wholesale offers CBD products, marijuana seeds, and other herbal remedies such as reishi and Chaga. For Red Light, however, truffles remain its primary focus.
On their website, Red Light states, “A revolution in the standardization and responsible use of Legal Premium Magic Truffles has begun”. Part of its strategy entails the exploration of whole-fungus medicine. Scarlette Lillie, Red Light Holland’s science and innovation division, “plans on initiating and partnering with medical professionals to help further study the health benefits of ‘whole fungi’ medicine.” Part of the research into psychedelics is establishing which parts of the fungus are active in the hallucinatory experience. Often, when making medicine for mass-market use, single compounds are distilled and separated from the source, but it may be that the entire plant, or fungus, works to maximize benefits. For that reason, it’s valuable to have companies such as Red Light exploring this aspect of medicine while other companies tend to isolate the psilocybin compound.
“The Acquisition of SR Wholesale marks the latest step in the Company’s growth and expansion strategy, as we continue to move forward with a positive business outlook focused on achieving revenue growth, profitability, and value creation for our shareholders. We expect this transaction to serve as a launchpad for Red Light Holland to broaden operations, create new homes for our iMicrodose packs and build brand exposure into multiple European markets. Other companies in the sector can keep telling people or assuming how people should consume psilocybin years from now, while we will continue offering people what they want right now, while concentrating on immediate revenue, profit and growth” says Todd Shapiro, the Chief Executive Officer and Director of the Company. “We are quite thrilled, after months of tough negotiations and careful due diligence, to move forward as the largest legal psychedelic distribution publicly traded company in the world.”
The press release lines out what steps SR Wholesale will take to benefit its parent companies:
- Creating the necessary scale to support the growth of the continuing trend towards increased usage of psychedelics, including opening up the distribution channels to hundreds of stores for Red Light Holland’s iMicrodose Packs
- Providing access to many new, unique and legendary product offerings within the Psychedelic sector, including obtaining sole-ownership of the established Mister Maka Brand (www.MisterMaka.com), which produces Magic Truffles
- Giving Red Light Holland the instant opportunity to white-label to help with brand growth, exposure, and expansion
- Creating new revenue generation opportunities across Red Light Holland’s e-commerce platform at www.iMicrodose.nl
- Allowing Red Light Holland to have access to established brands and a vast array of products in sectors outside of Psychedelics, including existing inventory to reach sales opportunities and increased profit margins
- Immediately becoming a distribution leader with expertise and know-how, while looking to combine the complementary skill sets to focus on increasing SR Wholesale’s market share in the Netherlands and other global markets
- Instantly, growing the Red Light Holland infrastructure and staff with current leaders in the psychedelic industry, including Mr. Shai Ramsahai, Founder of SR Wholesale, who will join Red Light Holland as the Company’s Vice-President
- Gaining invaluable access to data and personal connections, including a plentiful and important list of email, production, white-label, retail store, retail product and social contacts
From the press release:
The Company has also approved the grant of 1,000,000 stock options to purchase common shares of Red Light Holland to Mr. Shai Ramsahai. The options have an exercise price of $0.38 per common share and have a term of 2 years.
About SR Wholesale B.V.
SR Wholesale B.V. is a Dutch company based in Schijndel, Netherlands, specialized in the selection, distribution and export of Products such as Truffles, CBD products, cannabis seeds, Smartshop items, Headshop products, Growshop goods and Cannabis Bake House muffins, cookies and cakes. SR Wholesale has been operating successfully in the exceptionally competitive sales market for more than 4 years, in multiple European countries, reaching over 1,000 retail shops.
SR Wholesale and the Seller were advised by Mr David Ivtsan, Principle, Moonstone Advisors, Moonstone Finance Group Ltd’s advisory arm.
About Red Light Holland Corp.
The Company is an Ontario-based corporation engaged in the production, growth, and sale of magic truffles to the legal market within the Netherlands, following the highest standards, in compliance with all applicable laws.
For additional information on the Company, please contact:
Todd Shapiro
Chief Executive Officer and Director
Email: todd@redlighttruffles.com
Website: https://redlighttruffles.com
Forward-Looking Statements
Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements contained in this news release that are not statements of historical fact may be considered forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend” or the negative of these terms and similar expressions. Specifically, forward-looking statements in this news release include but are not limited to, statements related to (i) the anticipated benefits of completing the Acquisition, (ii) expectations of future financial performance of the Company; and (iii) the expansion of the Company’s operations. Forward-looking statements necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Accordingly. readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Readers are further cautioned that the assumptions used in the preparation of such forward-looking statements (including, but not limited to, the assumption that (i) the Company will be able to execute on its business plan, and will receive one or multiple licenses, permits, and authorizations from time to time necessary to execute on its business plan, (ii) the Company’s financial condition and development plans do not change as a result of unforeseen events, (iii) there will continue to be a demand, and market opportunity, for the Company’s product offerings, (iv) the Company will be able to establish, preserve and develop its brand, and attract and retain required personnel, (v) current and future economic conditions will neither affect the business and operations of the Company nor the Company’s ability to capitalize on anticipated business opportunities, (vi) the Company will be able to realize the anticipated synergies of the transactions contemplated by the Purchase Agreement, and (vii) the continued availability of capital and financing on acceptable terms), although considered reasonable by management of the Company at the time of preparation, may prove to be imprecise and result in actual results differing materially from those anticipated, and as such, undue reliance should not be placed on forward-looking statements. The forward-looking statements included in this news release are made as of the date of this news release, and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws. Forward-looking statements, forward-looking financial information and other metrics presented herein are not intended as guidance or projections for the periods referenced herein or any future periods, and in particular, past performance is not an indicator of future results and the results of the Company in this press release may not be indicative of, and are not an estimate, forecast or projection of the Company’s future results. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
