Red Light Holland closes second tranche of private placement

• Psychedelics company, Red Light Holland (CSE:TRIP) has closed the second tranche of a private placement, which raised C$830,529 in proceeds
• When added to proceeds from the first tranche, the company has raised approximately $3.83 million from its private placement
• In the second tranche, Red Light issued 5.03 million units at 16.5 cents each, with units containing a company share and purchase warrant
• The company plans to use the second tranche’s proceeds for working capital and general corporate purposes 
• Red Light Holland (TRIP) is down 7.41 per cent and is currently trading at 12 cents per share

Psychedelics company, Red Light Holland (CSE:TRIP) has closed the second tranche of a private placement, which raised C$830,529 in proceeds.

When added to proceeds from the first tranche, the company has raised an aggregate $3.8 million from its private placement. 

Red Light Holland issued a total of 5.03 million units during the placement’s second tranche. Each unit, sold at 16.5 cents each, contained one common company share, and one common share purchase warrant.

Each purchase warrant entitles the holder to buy one more common share in the company, at an exercise price of 26 cents. The warrants are exercisable until June 16, 2024, subject to an accelerated expiry option.

All securities which Red Light Holland issued in the second tranche are subject to a four-month hold period. 

Eight Capital acted as the sole agent for the second tranche. The company has paid Eight Capital a cash fee of $58,137, and issued 352,346 compensation options for its services.

Each compensation option entitles the agent to purchase one unit of the company at the issue price within 48 months.

Red Light’s Director and CEO, Todd Shapiro, commented positively on the closing of the placement’s second tranche.

“We continue to lock in more financing, which strengthens Red Light Holland’s position of being one of the global leaders in this relatively new sector. 

“We are elated to have new shareholders who share in our vision,” he said.

The company plans to use the proceeds from the second tranche for working capital and general corporate purposes.

Red Light Holland is down 7.41 per cent and trading at 12 cents per share at 3:12pm EDT.