Ontario-based producer of functional mushroom home grow kits and premium magic truffles Red Light Holland Corp. (OTC:TRUFF) has acquired MiniChamp B.V., a dutch home grow mushroom farm, through its wholly-owned subsidiary RLH Netherlands B.V.
MiniChamp, a 30-year-old home cultivation mushroom packaging company with consumers across several European countries, will continue working as such following the acquisition, supporting Red Light Holland's sales strategy via retail and online across Europe.
The company will use its new farm’s production and mass distribution relationships on the continent to help with the launch of Mistercap LLC Mushroom Home Grow Kits, a venture done collaboratively with multi-awarded record artist Wiz Khalifa, as well as to produce and launch brand new home grow magic truffles kits that will be available for adults in the Netherlands market.
Red Light Holland is set to pursue additional revenue growth opportunities, including introducing MiniChamp's products to more retail shops through SR Wholesale, its subsidiary RLH Netherlands' wholesale company which holds an established European distribution network.
Pursuant to the definitive purchase agreement dated October 4th, 2022, Red Light Holland acquired 100% of the issued and outstanding shares of MiniChamp for total of $612.875 in the form of cash (88%) and common shares (12%) with a deemed price of $0.0734 each.
The agreement also provides for up to $98.070 of earn-out payments to MiniChamp subject to reaching certain sales milestones. The Red Light shares issued will be subject to a two-year hold period from the date of closing, with 25% released every six months.
Red Light Holland’s CEO, Todd Shapiro, gave a bullish statement. "As I've made clear in the past, we are planning for and believe in an entire world where one day adults may legally have affordable and equitable access to naturally-occurring psilocybin, and much like Cannabis here in Canada, which permits adults to cultivate up to 4 cannabis plants per household, we hope one day adults will be able to grow magic mushrooms at home for responsible, personal use and potentially approved natural-occurring medicinal use.
“In the meantime, we will collect and build on adding customer and retailer lists, so we can instantly reach out for future distribution of psilocybin home grow products, if and when that day happens, while we focus on brand growth and immediate revenues via legal mushroom grow-at-home kits across North America and now Europe, as well as magic truffles home-grow kits in The Netherlands," he concluded.
Photo by Peter Hall on Unsplash
