Red Light Holland Archives - Green Market Report

Debra BorchardtFebruary 27, 2023


Red Light Holland Corp. (CSE: TRIP) (OTCQB: TRUFF) delivered revenue of $1.2 million versus last year’s $622,000 for the third fiscal quarter of 2023 ending Dec. 31, 2022.

That’s a year-over-year increase of 88.9%. Red Light also reported a net loss of $1.3 million in the quarter. All figures are in Canadian dollars.

“Our revenue growth represents both the consolidation of recent acquisitions and increased activity levels, specifically the increased production levels at Acadian Exotic Mushrooms Ltd. and our increased sales and brand growth of Happy Caps mushroom home grow kits,” said Todd Shapiro, chief executive officer and director of Red Light Holland. “Our gross profit, which represents 50% of sales, has generated strong results through improvements to production efficiencies and prudent spending.”

Gross profits were $587,154 and the cost of sales was $588,081.

“We are also exploring some near-term potential M&A opportunities, including having a signed non-binding letter of intent with a company in the consumer packaged goods mushroom category, who we are in current due diligence with,” Shapiro added. “We are excited to put our strong cash position to work for us with expansion and future revenue growth in mind. Red Light Holland, its board of directors, and its management are always focused on growing our overall mushroom business, as we zone in on increasing near-term revenues while waiting for hopeful catalysts in the potential legal psychedelic market. However, until then, we plan on making a variety of different mushrooms sexy – with the ultimate goal of increasing shareholder value.”

Revenue Breakdown

The company’s revenue breakdown was as follows:

  • Wholesale products sales: $441,794
  • Wholesale mushroom sales: $260,948
  • Mushroom grow kit sales: $400,408
  • Retail sales: $71,665

“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,” David Ascott, chief financial officer of Red Light Holland, said. “The company’s working capital as of Dec. 31, 2022, was $19.2 million which included $19.7 million of cash and cash equivalents. The net loss for the three months ended December 31, 2022, was $1.3 million, which has increased slightly over the prior year’s results of $1.2 million. For the nine months ended December 31, 2022, the company generated revenues of $2.7 million and gross profit of 1.2 million.”

Wiz Khalifa Connection

“While the launch dates have been pushed back a bit, we are very pleased with the progress of the behind-the-scenes creation of MISTERCAP’s home grow mushroom kits, who will be receiving marketing advisory services from Wiz Khalifa as he plans on leveraging his social media presence to promote these legal mushroom products across Canada, United States, and the European Union,” Shapiro said.

“We are already focused on lining up supply and increased production, as we have purchased a state of the art automated machine to handle all future forecasts for Home Grow Kit production of MISTERCAP’s products in anticipation of their launch, expected Summer 2023, plus Happy Caps’ production as well. Our automated machine from Japan, is expected to be set up at our Partners’ farm in Summer of 2023,” added Mr. Shapiro.

Mushroom Facility

Red Light said it also continues to work with an expert mushroom farm design firm in The Netherlands and experienced Canadian engineers to finish the site plans for the Peterborough project.

With the design phase nearing completion, the company said it plans to submit the finalized engineered stamped plans within the next 4-6 weeks to the Township of Cavan Monaghan in order to begin the approval process as the company seeks to obtain permits for the construction of the mushroom facilities.

Once completed, the Peterborough Farm is expected to immediately generate revenues of approximately $80,000 per week. As it ramps up to its full production capacity, the company said it expects a revenue run rate of approximately $16 million-$17 million per annum with strong profit margins and cash flows from operations.

The mushroom facilities should take roughly 18 months to construct following the submission of the final plans to the township. The cost to build the facilities is estimated to be around $8 million.

Adam JacksonJuly 26, 2022


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.

Wellness Shops

 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.


Dave HodesJune 27, 2022


In Oregon, when voters approved Ballot Measure 109 calling for the legalization of psilocybin in November 2020, there was a silent hurrah throughout the state among people who took magic mushrooms for fun that went something like this: “Now we can go in to a psilocybin store and get a few grams of ‘shrooms—or maybe a handful—for the next concert.”

But that wasn’t the case. The measure was created to provide psilocybin for mental health therapy. It was strictly medicine. Wasn’t it?

Sometime early next year, if all goes according to plan, anyone over 21 will be able to go into a store in the state and buy magic mushrooms. But then they would have to sit through an “administration session” as a client of the facility, where they would consume and experience the effects of psilocybin under the supervision of a licensed psilocybin service facilitator. An “integration session” would follow where the client and a psilocybin service facilitator would discuss the experience.

It’s all pretty much just an extended doctor’s office visit, and brings into sharp focus what some believe to be the hollow victory of the state’s recreational psilocybin legalization: They are not for recreation at all.

Right now, the state is still in the process of setting up all the details of this psilocybin buying/selling/experiencing program. This includes: establishing rules by the end of the year; securing and customizing a product tracking system; creating an equity and justice centered approach to background checks; continuing to hire licensing and compliance teams; supporting the Oregon Psilocybin Advisory Board and subcommittees; creating education and training for their regulatory community and the public; and more.

But people looking for recreational fun with ‘shrooms don’t want to go to a medical clinic, or whatever these facilities will be morphing into as the regulations are developed and they begin operations. 

And outside of the concert or the dance club, people are beginning to use psilocybin as a smidgen of a bit of ‘shroom in their morning coffee, for example, to help set up a relaxing and productive day. That’s a trend that is catching on, rooted in Silicon Valley enterprises.

So the questions remain: Is legalized recreational psilocybin strictly medicine? Or can it also be a daily brain treat like some sort of advanced specialized brain health supplement? Or is it—will it become—a whole new recreational experience once people began tinkering with it outside of clinical studies and beyond the scope of any new regulations?

Not even the current Oregon state regulatory body can figure that out. Microdosing was not addressed, meaning that, even though recreational psilocybin is legal, microdosing is illegal right now. 

And there is confusion and debate around how medical Oregon’s psychedelics program will be structured. “I think there’s been a disconnect in what voters were told to expect when they voted and now. People will want mental health treatment but it’s not medical,” said Kimberley Golletz, a licensed psychologist and member of the Oregon Psilocybin Advisory Board giving guidance on the rules, as quoted in an article by Stat, a health and life sciences publication.

Real recreational legalization is part of the goal of Red Light Holland (OTC: TRUFF), an Ontario-based company that offers microdoses of magic truffles in their iMicrodose kit. A magic truffle is the fruiting body below the ground of the psilocybin mushroom. Magic truffles and magic mushrooms are both parts of the same organism that creates psilocybin, and have the same trippy effects after ingestion (though truffles’ effects are reportedly milder). Due to a loophole in Dutch law, magic truffles are legal but magic mushrooms are not. No therapists. No integration sessions. Just responsible adults going about their business buying magic truffles and enjoying their psilocybin experience.

Red Light Holland has been working on getting their products to other countries, such as Brazil and Canada, from their grow operations in The Netherlands. 

The company was created around the production, growth and sale of magic truffles to the legal, recreational market within the Netherlands, in compliance with all applicable laws. 

In an interview with The Street, an investment information company, Red Light Holland director and CEO Todd Shapiro said that he believes that magic truffles are a consumer goods product that is poised to cross more international borders. “We’re doing this because people are getting it anyway,” he said. “There are illicit markets anywhere you look. If people want to get access to this anyway, why not do it legally, why not do it carefully, and responsibly, and provide them that education that we are doing now. The careful use is the most important thing.”

So psilocybin is medical, but not… it’s illegal everywhere, except where it’s not… it’s turning into something like an uplifting food and beverage supplement to be combined with yoga or meditation, but that’s not really it either. It’s morphing, it’s evolving, it’s a moving target.

Perhaps the best thing that recreational psilocybin legalization has done is put more focus on achieving better brain health in general. According to results from an AARP survey, nearly one-quarter of adults age 18 and older currently take a supplement to maintain or improve brain health or delay or reverse dementia. That means that 58 million Americans (30 million age 50+) buy supplements believing it will help their brain health. Nine million adults age 50+ (8 percent) are taking a dietary supplement thinking it will actually reverse dementia.

Bottom line? There actually is no defined bottom line. But keep an eye on Oregon’s program, which could become the model of recreational psilocybin for other states as decriminalization continues—if all goes according to plan.

Debra BorchardtMarch 2, 2022


Red Light Holland Corp. (CSE: TRIP) (OTC Pink: TRUFF)  reported its financial results for the fiscal third quarter ending December 31, 2021. Red Light said it generated 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. All amounts are expressed in Canadian dollars.

“As a result of our team’s hard work and commitment, I am pleased to announce revenue and gross profit increased by 28% and 48%, respectively, during the third quarter. We realized growth in both the Netherlands and Canada through SR Wholesale and Happy Caps, as increased revenue remains our core focus. We are on-track with the strong foundation that we are building and we are excited about future revenue generation with AEM, which is now in early-stage production, current and future CPG expansion, and other potential strategic acquisitive opportunities,” said Todd Shapiro, Red Light Holland CEO and Director. “Our mission remains as well: to provide affordable and equitable naturally-occurring adult access via technology, education, information and responsible use. As you know, I love marketing and brand building – we will push even harder in the near future with impactful marketing strategies with the continued goal of Red Light Holland being the leader in the Rec and Tech psychedelic’s sector. We will provide updates shortly regarding Scarlette Lillie Science and Innovation (MERA) in St. Vincent, Wisdom Truffle pre-sales, and we continue to identify and analyze near term merger and acquisition transactions while remaining cautious with our spending habits. I’m very proud of our energetic and passionate Red Light Holland team as we keep delivering and putting the pieces of the puzzle together. I am grateful for our shareholders’ patience and continued support. Feel free to contact me anytime with the email provided below.”

Second Batch

In November 2020, Red Light began growing its second crop which was anticipated to yield 1,000,000 grams of the Psilocybe Mexicana, Psilocybe Galindoi, and Psilocybe Tampanensis strains of truffles (the “Second Batch”). The Second Batch became available for harvest in calendar Q2 2021. For clarity, once a batch is ready for harvest, the harvest does not immediately have to take place but rather can be done several months later. The company has allocated the Second Batch for packaging and distribution within the Netherlands (under the iMicrodose” brand) and wholesale distribution. As of the date of the filed MD&A, approximately 661,000 grams of the harvest have been sold. The company said it plans to continue selling truffles from the second batch throughout the calendar second quarter of 2022.

In January 2022, Red Light began a continuous production schedule of smaller batch sizes of approximately 100,000 grams (the “Continuous Batches”). This new production schedule allows for the increased flexibility of strain selection and production process to ensure that we meet customer demand and improve harvest yields to reduce production costs per gram.

Health Canada

In January 2022, Health Canada published amendments to its Special Access Program which now allows access to psychedelics such as psilocybin for patients in medical need on a case-by-case basis. This amendment will allow physicians to request access to psilocybin when other therapies have failed and where there is sufficient evidence of safety and efficacy for the treatment of the patient’s condition. Health Canada’s decision may offer patients who have not responded to existing therapies new avenues to receive care. Following Health Canada’s announcement, CCrest Laboratories Inc., our partner in psilocybin research, was approved by Health Canada to supply psilocybin under the Special Access Program.

Sarah Hashkes, Red Light Holland’s CTIO added, “With the recently published amendments to Health Canada’s Special Access Program which now allows physicians to request access to psilocybin for patients in medical need on a case-by-case basis, Red Light Holland is looking ahead to participating in this changing landscape. Our research has resulted in significant steps towards the standardization of determining the appropriate dosages required in emerging markets as a result of Health Canada’s Special Access Program and the state of Oregon’s Measure 109. We have also expanded our education and advocacy by partnering with Psychedelic Medicine Alliance Washington, a grassroots movement in the state of Washington.”

In January 2022, Red Light Oregon sent a report to the Oregon Health Authority and to the Oregon Advisory Board focused on microdosing research along with specific recommendations for microdosing within Oregon’s Measure 109.

With regards to the strength of the current balance sheet, David Ascott, Red Light Holland Chief Financial Officer, added “Our financial position 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. The working capital as of December 31, 2021, is $27.1 million which includes $27.3 million of cash and cash equivalents.”

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