Ontario-based mushroom company Red Light Holland Corp. (OTC: TRUFF) announced that its wholly-owned subsidiary, RLH Netherlands B.V. has completed the acquisition of SR Wholesale B.V., one of the Netherlands’ premiere distributors for quality psychedelic truffles. The company said in a statement that in 2020, SR Wholesale generated over $2.44 Million in revenues, and over $822,000 in gross profit, with approximately $400,000 of cash and working capital currently on hand.
The acquisition will give Red Light Holland access to many product offerings within the psychedelic sector including obtaining sole-ownership of the established Mister Maka Brand which produces Magic Truffles. It will also give Red Light Holland the instant opportunity to white-label to help with brand growth, exposure, and expansion.
“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.” said 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. As well, we are truly so pleased to work closely with Mr. Shai Ramsahai, who is one of the brightest, most determined and likeable entrepreneurs I’ve ever come across.”
“This is an exciting time for both SR Wholesale and Red Light Holland. After years of hard work we have established an incredible and profitable Distribution company with a huge network across the Netherlands and Europe. I believe that moving forward with Hans Derix (Red Light Holland’s President) and Todd Shapiro coupled with our extremely knowledgeable, loyal and committed team, that together we can grow our wholesale business to new heights,” said Shai Ramsahai, Founder of SR-Wholesale.
SR Wholesale also distributes popular CBD products, cannabis seeds, smart shop items, and headshop products, among others. SR Wholesale has established a distribution network of over 400 companies that sell their products across Europe, including working with sub-distributors that provide products to over 1,000 shops in countries like the Netherlands, Germany, Spain, Czech, Greece, UK, France, and Portugal.