Can Psychedelics Follow Cannabis’ Lead?
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.
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.”
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