Ontario-based mushroom maker Red Light Holland Corp. (CSE: TRIP) (OTCQB: TRUFF) reported a decent boost in both revenue and gross profit for its fiscal year ending March 31, 2023.
The company, known for its premium brand of psilocybin truffles sold in the Netherlands’ legal, recreational market, saw its revenue rise by nearly 70% to $3.95 million, up from $2.3 million the previous year. Gross profit jumped by 176.3%, hitting $1.7 million compared to $600,000 in 2022.
According to regulatory filings, Red Light Holland ended the fiscal year with a net loss of $5.8 million, and improvement versus 2022’s $14.9 million net loss. The company’s cash balance was $18.5 million at the end of the year.
“We realized significant growth in both the Netherlands and Canada through all of our operations,” Todd Shapiro, Red Light Holland CEO and Director. “We’ve increased production, distribution and points of sale of both magic truffles and exotic mushrooms across many countries.”
In a statement Monday, Shapiro also pointed to the company’s strategic focus on expanding its brand and revenues in both established and emerging markets through the cultivation of natural psilocybin for adult use.
“Our financial position and liquidity remains strong, and the company currently has sufficient capital to fund its ongoing business development and future growth and expansion plans for the foreseeable future,” CFO David Ascott said.
The company’s total assets stood at $30.1 million as of March 31, 2023, which includes $18.5 million in cash and cash equivalents. In addition, the company invested in tangible capital assets, including a 100-acre farmland in Ontario valued at $1.9 million.
The company said it is also strategically deploying excess cash into government-issued GICs to maximize return on investment.
“We are very excited for the next few months and we will continue to update our loyal shareholders as we are supremely confident with our growth strategy and overall plans,” Shapiro said, adding that the company is developing psilocybin microdosing capsules in partnership with CCrest Laboratories for distribution with NUBU Pharmaceuticals in Australasia.
Red Light also noted the upcoming construction of a 65,000-square-foot farm in Peterborough, Ontario, and potential mergers and acquisitions activities.