Red Light Holland - Director and CEO, Todd Shapiro (Right).
Director and CEO, Todd Shapiro (Right).
Source: Daily Hive.
  • Red Light Holland acquires 51 per cent of Acadian Exotic Mushrooms (AEM)
  • Holburne Mushroom Farm and Mike and Fernando Medeiros have agreed to purchase all sales from AEM’s entire production for the next three years at a purchase price of $6 per pound
  • The acquisition of AEM was comprised of $230,000 cash and 3,065,135 common shares of Red Light Holland
  • AEM will fall under the Red Light Farms division, joining Happy Caps Gourmet
  • The company expects operations at AEM to commence by early 2022
  • Red Light Holland Corp. (TRIP) is currently trading at C$0.225 per share

Red Light Holland (TRIP) has acquired a 51 per cent stake in Acadian Exotic Mushrooms Ltd.

AEM is a gourmet mushroom production facility co-owned by leading Canadian mushroom farming groups/individuals Holburne Mushroom Farm and Mike and Fernando Medeiros co-owners of Carleton Mushroom Farms. AEM will have the ability to produce, package and distribute a wide variety of fresh mushrooms with guaranteed sales contracts, while offering an assortment of dried options and the potential to produce functional mushroom consumer packaged goods. Start-up activities are currently underway, and the company expects operations at AEM to commence by early 2022.

“We at Red Light Holland are delighted to have inked this exciting partnership with clear industry leaders in the mushrooms sector,” said Todd Shapiro, CEO and Director of Red Light Holland.

“Mushrooms and Truffles are our core focus. We are partnering with mushroom farming veterans and look forward to a potential future where the AEM facility could be converted to support Canadian psychedelic operations, if and when regulations permit. In the meantime, given the relationships and scale of our partners, AEM has a guaranteed revenue stream and we have another addition to the Red Light Farms division. We look forward to updating the market when AEM commences its first grow from the newest Red Light Farm in Canada.”

“This is an incredible partnership for Red Light Holland,” said Bruce Linton, Chair of Red Light Holland’s advisory board.

“In my experience, any time you close a deal and partner with industry leaders, it bodes very well for the business as a whole. Todd continues to prove out his mandate on future near term revenues and Red Light Holland continues to pursue other M&A opportunities that fit and compliment their core focus of psychedelics, while searching out other opportunities with the strict goal of increased revenue generation but with cautious spending habits.”

Mike Medeiros, co-owner of Carleton Mushroom Farms commented on the partnership.

“We at AEM have been discussing the potential of breaking into the psychedelic/psilocybin sector for a few years now, so when the opportunity arose for us to partner with Red Light Holland, there was no doubt that this was the right partnership for us. We felt that Red Light Holland had great depth on their board of directors who possess a great vision for the future of psychedelics & psilocybin. We look forward to bringing our expertise and knowledge of the mushroom industry into this partnership and help propel Red Light Holland to be a market leader in the psychedelic & psilocybin sector.”

The acquisition was completed pursuant to the terms of the definitive agreement, pursuant to which Red Light Holland acquired 51 per cent of the issued and outstanding shares of AEM for aggregate consideration of up to $1,530,000. The consideration was comprised of $230,000 cash and 3,065,135 common shares of Red Light Holland. The agreement provides for up to 1,915,708 additional Red Light shares to be issued to the vendors subject to the satisfaction of certain milestones. Red Light Holland and the vendors have also entered into an offtake agreement under which the vendors will ensure a minimum purchase price of $6 per pound for all output from the facility for 3-year period.

Carleton Mushroom Farms was founded in 1984 by Mike and Fernando’s parents and remains a family run business. In recent years growing capacity has tripled, and yields have steadily increased to 12 million pounds per year. 

Holburne Mushroom Farm is a local family owned and operated business that specializes in growing fresh, organic Shiitake and Oyster Mushrooms since 2005. Production of Organic Shiitake and Oyster Mushrooms has steadily increased to current yield of 1.3 million pounds per year. Proudly, the largest fresh, Organic Shiitake Mushroom growers in Canada.

Red Light Holland is an Ontario-based corporation engaged in the production, growth and sale of a premium brand of magic truffles to the legal market within the Netherlands.

Red Light Holland Corp. (TRIP) is currently trading at C$0.225 per share.

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