Red Light Holland Corp. (CSE: TRIP) (FSE: 4YX) (OTC Pink: TRUFF) will acquire two retail stores based in the Netherlands in a bid to expand their psychedelic truffles and wellness products.
The company also said the acquisition makes Red Light Holland fully vertical – marrying their production, packaging and distribution operations with the retail shops and online sales. The company added that it will consider the creation of multiple Wellness World SmartShops across the Netherlands and Europe through acquisitions, franchising and/or constructing innovative stores in new locations.
The shops – known as Smartshops OSS and Utrecht – will be rebranded as “Wellness Shops” in the fourth quarter of 2022. The price tag for the shops are 100,000 and 200,000 Euros, respectively. The deal is expected to close by Aug. 1.
“I’ve been observing the SmartShop business for quite some time, and the industry really seems to be picking up as more and more people learn about psilocybin,” said Red Light Holland’s President Hans Derix. “What we are most elated by is our plan to rebrand with the focus on wellness products. We want to continue to end stigmas and help educate people to make informed decisions on the products they buy. The Netherlands, in my opinion, is definitely ready to see advanced, well-designed sharp looking Wellness World shops. And our team at SR-Wholesale is excited to supply the products to the new shops in two beautiful city centres: Oss and Utrecth with lots of tourism and tons of foot traffic.”
The Ontario-based corporation engages in the production, growth, and sale of functional mushroom home grow kits in North America, and a premium brand of magic truffles to the legal, and recreational market within the Netherlands.
The Wellness Shops will also sell CBD products, cannabis seeds, smart shop items, and other various popular wellness products. Additionally, they will carry only Red Light Holland’s Magic truffles products (iMicrodose, Maka and future brands) as Red Light Holland can curate the products sold by the retail locations. The Wellness Shops are profitable and have seen an increase in sales month over month during recent months, the release said.
In March, Green Market Report noted that the company reported its fiscal third quarter financial results with revenues of $622,247 for the quarter resulting in a gross profit of $232,792, an increase of $75,822 (or 48.3%) over the previously reported quarter. At that time, the company noted it was harvesting a batch of psilocybin mushrooms and that some of that was allocated for packaging and distribution within the Netherlands (under the iMicrodose” brand) and wholesale distribution.
“We will be fully vertically integrated in the Netherlands, from substrate to sale, and that’s exciting as we look to increase sales around psychedelics responsibly,” said CEO Todd Shapiro.