The psychedelics industry is just starting to grow now from a small base and looks quite likely to follow in the footsteps of the cannabis industry’s recent success story. Data Bridge Market Research forecasts that the global psychedelics market will grow from USD 2.077B in 2019 to USD 6.859B by 2027. Looking at these numbers that’s a 3.3 times increase in just 7 years. Growing acceptance of psychedelic drugs for treating depression and mental disorders are key factors for the forecast growth.

Psychedelics are the class of hallucinogenic drugs that may be used recreationally or for medical purposes. Their main benefits are in enhancing the sensory perception, elevating mood, and promoting spiritual experiences. Psychedelic drugs can be used in a medical setting to help depression, psychological treatments, palliative care and as an aid to help control the mind to be calm and peaceful.

Psychedelics are legal in the Netherlands, where there an estimated 100 Smart Shops operating, generating over US$100 million in sales annually. The price for 10 grams of truffles (the maximum amount for a beginner) is between 10 to 15 Euros in Amsterdam. Just recently Canada approved 17 healthcare professionals to possess and use the psychedelic active ingredient psilocybin to conduct professional training in psilocybin therapy. The focus is mainly for patients dealing with end-of-life distress, but marks the first step towards legal medicinal psychedelics use in Canada.

Red Light Holland Corp. (CSE: TRIP) is a leader in this market and is well advanced to benefit from the forecast very strong growth. They recently began selling their premium ‘magic truffles’ products (psychedelics) in the Netherlands. The Netherlands has a long-standing, established legal magic truffles market. Red Light Holland is currently setting up to further grow, distribute and market a premium brand of magic truffles to the legal recreational market within the Netherlands. They are also focusing on the medicinal side of the psychedelics industry as well as expanding their global sales to legal destinations.

Red Light Holland’s business plan is to produce and sell recreational and medical grade truffle products (psychedelics) in legal markets starting in the Netherlands

Source: Company website

Red Light Holland has recently raised over C$20M, providing the Company with over C$30M in the bank, this includes the latest C$11.6M bought deal financing. The funds intend to be used for working capital and general corporate purposes, essentially to grow the business. Red Light Holland has already grown and pre-sold their first batch of magic truffles from their production facility in Horst, Netherlands. They are now growing a further 1,000,000 grams of magic truffles. CEO Todd Shapiro stated: “Red Light Holland is ecstatic to announce that we have started to grow our second batch of magic truffles, expected to be 10X the original batch’s size.”

Global and product expansion potential for Red Light Holland

On February 25, 2021, Red Light Holland announced: “iMicrodose pack receives authorization for the first legal import and sale of psilocybin truffles to Brazil…..for prescribed medical patient use.” The iMicrodose pack contains 15g of psilocybin truffles made by Red Light Holland. This marks a significant milestone for Red Light Holland with their “first prescribed by a physician for medical use” of their truffles product, as well as an advancement in opening up the legal and medically approved market for psilocybin in Brazil.

On December 30, 2020, Red Light Holland announced they intend to make a groundbreaking investment in the St. Vincent and the Grenadines’ plant-based wellness and psychedelics industry, via a purchase of 100% of Mera Life Sciences LLC (‘Mera’). St. Vincent and the Grenadines are islands in the Caribbean Sea. Mera is developing a modern medicinal industry in St Vincent and the Grenadines with their issued psychedelic licenses. Todd Shapiro, CEO and Director of Red Light Holland, stated: “The acquisition of Mera and its coveted licenses would allow Red Light Holland to perform high quality psychedelic product research and development, cultivate, extract and process, and export, not just Psilocybin, but with compounds such as Ayahuasca, MDMA, DMT, Peyote, Ketamine and many other natural based plants as well…..”

On December 20, 2020, Red Light Holland announced it has entered into a non-binding letter of intent to acquire 51% of Psychedelic Insights in Amsterdam, the Netherlands. Psychedelic Insights currently provides psychedelic assistance to clients from all over the world, who are in need and want to try a safe and psychological guided experience. This includes psychedelic palliative care, re-connecting veterans and global mental health screening. A condition in the agreement includes an exclusive supply agreement with Red Light Holland’s truffles, grown from Red Light Holland’s facility in Horst, Netherlands.

Closing remarks

Red Light Holland continues to ride a wave of success with their magic truffles psychedelics. A 10x increase in their truffle production following the first batch being 100% pre-sold in advance, an overseas expansion potential via 100% acquisition with Mera, a potential 51% Psychedelic Insights acquisition (global client base), and finally, some initial success selling into Brazil. Added to all this it appears the medicinal use of psychedelics is making progress in Canada.

It certainly looks like Red Light Holland will continue to rapidly grow, especially after their successful capital raises and now C$30M in the bank. Red Light Holland’s market cap has dramatically increased as a result of all this good news and now sits at C$134M. Exciting times ahead, both for the Company and the industry.

Greenlight for Red Light Holland as Distribution Agreements Grow

Red Light Holland Corp. (CSE: TRIP) (“RLH”) engages in the production, growth, and sale of a premium brand of magic/hallucinogenic truffles to the recreational market in the Netherlands.

The Company is pre-revenue, with lots of potential, as it builds out a custom, 3000 square foot growing facility in Horst, the Netherlands.

To generate some immediate revenue and build its brand, the Company procured 10,000 units of psychedelic truffles for re-sale and started selling its Microdosing Packs of magic truffles in September through existing Smart Shop operators and its e-commerce platform. Its Microdosing Pack contains a small amount of magic truffle promoting responsible use, with the drug benefits but without the intensity of a full psychoactive experience.

Distributions Deals

In September, RLH signed a distribution agreement for its Microdosing Packs with Super Smart’s location in Tiel, the Netherlands.

Then in October, the Company reached a distribution arrangement with Smartshop Oss, in Oss, the Netherlands.

Finally, RLH completed a distribution arrangement with 3 House of Smart locations in the Netherlands, located in the cities of Rotterdam, Eindhoven and Den Bosch.

Todd Shapiro, CEO of RLH, commented, “clearly we are excited for a broad and diverse adult demographic, within all of these beautiful areas, to soon have the opportunity to see our brand and potentially purchase our responsible-use product.”

Psychedelics Industry

The psychedelics industry is similar to where the cannabis industry was 10 years ago as it fights for legalization in various countries. The use of psychedelic products is currently illegal in most jurisdictions, however countries such as the Netherlands and Jamaica have legalized some forms of psychedelics.

Psilocybin is the chemical alkaloid that induces psychedelic effects, often found in psilocybin mushrooms (“magic mushrooms”) or psilocybin truffles (“magic truffles”).

RLH is currently growing 3 different strains of magic truffles: Psilocybe Mexicana, Psilocybe Galindoi, and Psilocybe Tampanensis, and expects to have an initial batch of 100,000 grams of magic truffles available this quarter.

Retail establishments in the Netherlands that specializes in the sale of psychoactive substances, such as magic truffles, are called Smart Shops. There are an estimated 100 Smart Shops operating in the Netherlands, generating over US$100 million in sales annually.

New Clinical Market

The psychedelics industry has since gained some traction with pharmaceutical companies starting to research the effects of psychedelics on a range of medical ailments from mental health to cancer.

In September, RLH announced that its science division, Scarlette Lillie Science and Innovation, entered into a relationship with Jinfiniti Precision Medicine in order to explore the potential roles that psilocybin and magic truffles can play for age-related and psychiatric disorders.

Jinfiniti has created a blood test that can detect key factors that drive aging and other genetic instabilities. Jinfiniti’s fast and low cost test allows for scientists from both companies to clearly evaluate the potential for psilocybin treatments that go beyond what is currently being explored.

The relationship with Jinfiniti opens up a whole new clinical market that goes beyond the recreational market.

High Profile Management Team

RLH has several prominent management executives and celebrities to help drive its growth and brand recognition, including: Ann Barnes, co-founder of Peace Naturals; Bruce Linton, founder and former CEO of Canopy Growth; Tony Clement, the former Health Minister of Canada (2006-2008); and, Russell Peters, a comedian with international brand recognition and over 5.5 million people on his social media platforms.

Funded for Growth

The Company had $6.6 million in cash as of June 30, 2020, after raising over $4 million in private placement in June.

RLH is currently trading at $0.08 with a market cap of only $17.2 million has plenty of room for upside gains.

iMicrodose Pack of Magic Truffles by Red Light Holland

Source

Exploring the recreational and potential medical use of psychedelics

Most people have heard of ‘magic mushrooms’, but they may be unfamiliar with their fungi cousin magic truffles. Magic truffles are legal and very popular in the Netherlands and are well known for their hallucinegic properties that result in psychedelic effects. What is less well known is that truffles have a number of potential health benefits related to reducing anxiety and depression, lifting mood, and freeing the mind. The price for 10 grams of truffles (the maximum recommended dose for a beginner) is between 10 to 15 Euro in Amsterdam.

Red Light Holland Corp. (CSE: TRIP | FSE:4YX) (“RLH”) is in the ‘magic truffle’ business. The Company aims to engage in the production, growth and sale of a premium brand of magic truffles to the legal, recreational market within the Netherlands. Their business revolves around a premium brand of magic truffles. Sales are conducted through existing Dutch Smartshops storefront operators and an advanced e-commerce platform. The Netherlands is a country with a long-standing, established, legal magic truffles market.

Red Light Holland is now starting to commercialize their premium magic truffles in the Netherlands for both recreational and eventual medicinal use

Source: Company presentation

In some surprising news in August, RLH announced that it had commenced its “magic truffles growth operation in the Netherlands, months ahead of schedule…” Red Light Holland has “expedited the build out of its approximately 3,000 square feet, custom built, indoor growing, production and distribution facility of the Company, in Horst, the Netherlands (the “Facility“) and has commenced growing its first crop of magic truffles.”

RLH has also ordered 10,000 units of Psychedelic Truffles Microdosing Packs from McSmart (one of the Netherlands’ prominent truffle growers, distributors and Smart Shop owners), to launch the Microdosing Packs within the Netherlands as early as September 2020. RLH plans to sell these via three Smart Shops operated by McSmart, as well as through Red Light Holland’s proposed e-commerce platform and McSmart’s existing e-commerce platform.

Red Light Holland has also been on a hiring spree adding 7 new high-level members to their team with a wide variety of both business and medical (psychedelics) knowledge and experience. One of the new hires, Sarah Hashkes from RadixMotion, will focus on developing an innovative virtual reality shopping experience (VR Module, due by Q4 2020) for Dutch Smart Shops and e-commerce platforms. Sarah Hashkes is the CEO of RadixMotion and a scientific researcher with knowledge on microdosing and is RLH’s new Scientific Advisor. Part of her mandate is to educate the public about psilocybin, the active ingredient in magic truffles.

The project also includes having a “VR Avatar”, expected to be online by Q3 2020. The VR Avatar is expected to assist Red Light Holland’s larger efforts towards reducing the stigma associated with magic truffles and other psychedelic substances. The Avatar, RLH explains, is to help the novice: “Now imagine shopping for something new – but wanting to truly experience it before purchasing? Pretty cool idea, right? What we are aiming to create here is a virtual reality experience that potential consumers can use before buying our Microdose Packs. This way, they can experience what the effects of microdosing magic truffles would be like, to help with their personal comfort and understanding before actually purchasing our product.”

Sounds rather cool to me. I think it will be quite popular for the curious to try this out. What do readers think?

Red Light Holland is currently growing three different strains of magic truffles and expects to have an initial batch of approximately 100,000 grams of magic truffles available in late October, 2020.

Red Light Holland carves out a unique market niche

Source: Company presentation

Closing remarks

Red Light Holland is moving surprisingly fast to commercialize and promote their product range of premium magic truffles. Considering the Company only listed in Canada this year in late May, then in Germany in June, it is quite amazing that operations have already begun and they are already producing their own magic truffles.

Red Light Holland trades on a market cap of just C$19m as investors are yet to learn about the Company, and their large potential to rapidly expand and create revenues in the lucrative magic truffles market in the Netherlands. Exciting times are ahead for Red Light Holland with a new innovative VR Avatar virtual reality shopping experience, with sales and revenues all not that far away in Q3 and Q4 of this year.

“We have named a Science and Innovation division called Scarlette Lillie… We thought that this is a way to show investors how serious we are about our medical, our scientific and research division because not only is Red Light Holland a recreational opportunity, where we plan our products on shelves by Q4, but we also want to show the world that we are taking this side very seriously of trying to prove and being a part of the process of what psilocybin can potentially do for human beings…We want to create this division and grow this division to get involved with observational studies, clinical studies and show the scientific community and be a part of some intellectual property…” States Todd Shapiro, Co-Founder, CEO and Director of Red Light Holland Corp. (CSE: TRIP), in an interview with InvestorIntel’s Tracy Weslosky.

Todd went on to comment on the appointment of Canada’s former Health Minister, the Honourable, Tony P. Clement, as a Senior Advisor to Red Light Holland’s Advisory Board. Mr. Clement has served in senior roles in Prime Minister Stephen Harper’s Cabinet (2006-2015), as Health Minister, Industry Minister and President of the Treasury Board. Todd also said that Red Light Holland has a strong cash position and is building a very strong team which includes Dr. Joseph Geraci, a leading mind in the medicine and machine learning fields and global comedy superstar, Russell Peters.

To access the complete interview, click here

Disclaimer: Red Light Holland Corp. is an advertorial member of InvestorIntel Corp.

“Psychedelics are a multibillion-dollar market….and that is what this industry is banking on. We are product based, we are a premium brand — the Red Light Truffle will be available in smart shops and we potentially could even have products within the smart shops and on an advanced e-commerce platform by the end of Q3. We plan on setting up a facility that we hope one day will qualify for EU-GMP certification. That means that we can grow a perfect clean room medical grade truffle that could potentially be tested…truffles are sold legally in Netherlands…we think we can capitalize with a premium brand feel and with a micro dose responsible use product.” States Todd Shapiro, Co-Founder, CEO and Director of Red Light Holland Corp. (CSE: TRIP), in an interview with InvestorIntel’s Tracy Weslosky.

Todd went on to say that Red Light Holland will have two divisions – Red Light Recreational and Red Light Health. The company is starting with recreational and will have a medical play in the future. Todd also said that Bruce Linton is the Chairman of Red Light Holland’s Advisory Board. Bruce is the founder and former CEO of Canopy Growth Corporation. Under his leadership, Canopy Growth was the first cannabis producing company in North America to be listed on a major stock exchange (TSX) and included on a major stock index (S&P/TSX Composite Index). Canopy Growth was also the first cannabis-producing company to list on the New York Stock Exchange.

To access the complete interview, click here

Disclaimer: Red Light Holland Corp. is an advertorial member of InvestorIntel Corp.