Toronto, Ontario–(Newsfile Corp. – April 9, 2024) – Red Light Holland Corp. (CSE: TRIP) (FSE: 4YX) (OTCQB: TRUFF) (“Red Light Holland” or the “Company”), a company engaged in the production, growth and sale of functional mushrooms and mushroom home grow kits in North America and Europe and a premium brand of psilocybin truffles to the legal, recreational market within the Netherlands, in compliance with all applicable laws, is excited to announce the forthcoming update regarding its Research and Development (R&D) collaboration with CCrest Laboratories Inc. (“CCrest Laboratories“), a cGMP-certified pharmaceutical laboratory based in Montreal, which possesses a Controlled Drugs and Substances Dealer’s License and PharmAla Biotech Holdings Inc. (CSE: MDMA) (OTCQB: MDXXF) (“PharmAla“).
Following the announcement on February 27, 2024, Red Light Holland has initiated its export of 5 kg (5000 grams) of natural psilocybin truffles, freshly cultivated at the Company’s farm in the Netherlands, to CCrest Laboratories on Monday, April 8th, 2024. This shipment, significant for being the Company’s largest to date, leverages a 5th Health Canada approved psilocybin import permit to Red Light’s partner, CCrest Laboratories, a cGMP pharmaceutical laboratory. The 5 kg of natural psilocybin truffles is now en route and expected to arrive shortly in Montreal, Canada.
Todd Shapiro, CEO and Director of Red Light Holland, expressed enthusiasm about the recent shipment, stating, “With this significant and largest to date shipment of Red Light’s psilocybin under a Health Canada approved import permit to CCrest, we are thrilled to commence our first step of many in our experimental research project to develop a process for the commercial manufacture of natural-source Active Pharmaceutical Ingredient (API) derived from our Company’s psilocybin truffles. We look forward to updating our loyal shareholders with further announcements dedicated to this overall R&D project, including our partnership with PharmAla.”
The Company also closed a non-brokered private placement (the “Offering“) of secured convertible debenture units of the Company (each, a “Debenture Unit“) for aggregate gross proceeds of $750,000, led by Plaza Capital (the “Lead Investor“). In connection with the Offering, the Company issued an aggregate of 750 Debenture Units to the Lead Investor at a price of $1,000 per Debenture Unit.
Each Debenture Unit consisted of: (i) a $1,000 principal secured convertible debenture (each a “Debenture“); and (ii) 16,666.67 common share purchase warrants (each, a “Warrant“) exercisable for 16,666.67 common shares in the Company (each, a “Share“). The Debentures mature on April 8, 2025 and does not bear interest.
The principal sum of the Debenture, or any portion thereof, and any accrued but unpaid interest, may be converted into Shares at a conversion price of $0.06 per Share, subject to adjustment conditional upon compliance with the polices of the Canadian Securities Exchange (the “CSE“). Each Warrant entitles the holder thereof to acquire one additional Share (each, a “Warrant Share“) at a price of $0.10 per Warrant Share, subject to adjustment conditional upon compliance with the polices of the CSE, for a period of 24 months from the date of issuance.
As an extension fee to the Lead Investor who have agreed to settle their debenture that matured on March 31, 2024 (the “2023 Debenture“) as part of their subscription in the Offering, and for agreeing to reduce the interest rate on the Debenture to zero, the Company has agreed to issue them in 2,375,000 units (each a “Settlement Unit“) comprised of (i) one Share; and (ii) one Warrant, at a deemed price of $0.05 per Settlement Unit.
The Company will use the net proceeds from the Offering, after settling the 2023 Debenture, for the ongoing development of the Company’s business model and for general working capital purposes.
The Shares issued as part of the Settlement Units and all Warrants issued pursuant to the Offering (including securities into which they may be converted or exercised) are subject to a statutory hold period of four months and one day from the date of issuance thereof in accordance with applicable securities law.
About Red Light Holland
Red Light Holland is an Ontario-based corporation engaged in the production, growth and sale of functional mushrooms and mushroom home grow kits in North America and Europe, and a premium brand of psilocybin truffles to the legal, recreational market within the Netherlands, in compliance with all applicable laws.