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:
Chief Executive Officer and Director
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