• Red Light Holland (TRIP) has merged with Creso Pharma to form The HighBrid Lab, a global psychedelics and cannabis company
  • HighBrid Lab is expected to have a cash balance of C$45 million and an implied pro-forma equity value of $347 million
  • The combined company will be organized into four business units: recreational cannabis, CBD, recreational psychedelics and psychedelic research
  • Creso Pharma develops cannabis and hemp-derived therapeutic, nutraceutical and lifestyle products
  • Red Light Holland is engaged in the production, growth and sale of magic truffles in the Netherlands
  • Red Light Holland (TRIP) is up by 8.82 per cent and is currently trading at $0.37 per share

Red Light Holland (TRIP) has merged with Creso Pharma to form The HighBrid Lab, a global psychedelics and cannabis company.

Transaction details

 Creso Pharma shareholders will receive 0.395 Red Light Holland shares for each fully paid ordinary Creso Pharma share.

Holders of listed Creso Pharma options will receive 0.257 Red Light Holland shares for each listed Creso Pharma option.

Upon completion, Creso Pharma securityholders will own 57.4 per cent of Red Light Holland.

The combined company is expected to trade on the Canadian Securities Exchange under the ticker symbol TRIP with a cash balance of C$45 million and an implied pro-forma equity value of $347 million.

Complementary management and board capabilities with industry leading experience

Red Light Holland’s current CEO, Todd Shapiro, will lead the combined company as CEO and Director.

Leading cannabis entrepreneur Bruce Linton will join the Board as non-executive Chairman.

The Board of Directors will consist of seven members, three of them current directors of Red Light Holland, and three directors or nominees of Creso Pharma.

Balanced portfolio of high-growth market pursuits

The HighBrid Lab will be organized into four business units, allowing it to aggressively pursue high-growth markets, while also focusing on near-term cash flows: Recreational cannabis, CBD, recreational psychedelics and psychedelic research.

Opportunity to scale recreational THC offering

The HighBrid Lab plans to conduct ongoing market reviews to expand Mernova Medical’s penetration and share.

Creso Pharma’s Mernova Medical is a licensed cannabis producer in Canada with Craft Designation from the Ontario Cannabis Store and an operating facility scalable to 200,000 square feet.

The HighBrid Lab also intends to pursue accretive acquisitions of U.S. THC operators as well as the introduction of Red Light Holland products within THC markets.

Enhanced distribution of European CBD offering with aggressive growth plans

The combined company plans to grow Creso Pharma’s suite of Swiss-developed and manufactured CBD products with distribution from Red Light Holland’s subsidiary company, SR Wholesale.

The company will also create a U.S. market-entry strategy for these CDB products and introduce functional mushrooms and combined CBD-functional mushrooms to markets in Europe and North America.

Market leader in recreational psilocybin with ongoing market expansion efforts

The HighBrid Lab will continuously monitor Red Light Holland’s leading position in recreational psychedelics and scale appropriately as the market matures. 

Investments in applied science supporting long-term therapeutic psychedelics opportunities

Creso Pharma has conditionally agreed to acquire Nova Scotia-based psychedelics life sciences company, Halucenex.

Subject to regulatory approvals, Halucenex will begin Phase II clinical trials to demonstrate the efficacy of psilocybin in treatment-resistant depression in Canadians.

For its part, Red Light Holland recently extended its LOI with Mera Life Sciences and continues discussions regarding  potential investments in St. Vincent and the Grenadines.

Management commentary

“Having worked with both the Creso Pharma and Red Light Holland teams closely in the past, I am really excited by the potential this combination brings. As a merged company, The HighBrid Lab has access to four of the highest growth industry segments around, and the team, board and advisory group to make real progress within these verticals,” said Bruce Linton.

Todd Shapiro, CEO and Director of Red Light Holland, added,

“Merging with Creso Pharma, who also has significant cash on hand, and formulating The HighBrid Lab, with Bruce Linton as Chair of the Board, means we can expand our premium product offerings globally in the high-growth CBD, THC and psychedelic sectors. Together we are bullish on developing world-class products with naturally occurring ingredients in clever and innovative ways for both humans and pets, which completely aligns with Creso Pharma’s R&D and sales approach.”

Additional details

Red Light Holland will host a live stream to discuss the strategic business combination on its social media handles at 8:30 am ET on Thursday, June 17th.

Creso Pharma develops cannabis and hemp-derived therapeutic, nutraceutical and lifestyle products for human and animal health.

Red Light Holland is engaged in the production, growth and sale of magic truffles in the Netherlands.

Red Light Holland (TRIP) is up by 8.82 per cent and is currently trading at $0.37 per share as of 9:51 am ET.

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