HomeBussinessRed Light Holland Reports Increased Revenue

Red Light Holland Reports Increased Revenue


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Red Light Holland Corp. (CSE: TRIP) (OTCQB: TRUFF) delivered revenue of $1.2 million versus last year’s $622,000 for the third fiscal quarter of 2023 ending Dec. 31, 2022.

That’s a year-over-year increase of 88.9%. Red Light also reported a net loss of $1.3 million in the quarter. All figures are in Canadian dollars.

“Our revenue growth represents both the consolidation of recent acquisitions and increased activity levels, specifically the increased production levels at Acadian Exotic Mushrooms Ltd. and our increased sales and brand growth of Happy Caps mushroom home grow kits,” said Todd Shapiro, chief executive officer and director of Red Light Holland. “Our gross profit, which represents 50% of sales, has generated strong results through improvements to production efficiencies and prudent spending.”

Gross profits were $587,154 and the cost of sales was $588,081.

“We are also exploring some near-term potential M&A opportunities, including having a signed non-binding letter of intent with a company in the consumer packaged goods mushroom category, who we are in current due diligence with,” Shapiro added. “We are excited to put our strong cash position to work for us with expansion and future revenue growth in mind. Red Light Holland, its board of directors, and its management are always focused on growing our overall mushroom business, as we zone in on increasing near-term revenues while waiting for hopeful catalysts in the potential legal psychedelic market. However, until then, we plan on making a variety of different mushrooms sexy – with the ultimate goal of increasing shareholder value.”

Revenue Breakdown

The company’s revenue breakdown was as follows:

  • Wholesale products sales: $441,794
  • Wholesale mushroom sales: $260,948
  • Mushroom grow kit sales: $400,408
  • Retail sales: $71,665

“Our financial position and liquidity remains strong, and the company currently has sufficient capital to fund its ongoing business development and future growth and expansion plans for the foreseeable future,” David Ascott, chief financial officer of Red Light Holland, said. “The company’s working capital as of Dec. 31, 2022, was $19.2 million which included $19.7 million of cash and cash equivalents. The net loss for the three months ended December 31, 2022, was $1.3 million, which has increased slightly over the prior year’s results of $1.2 million. For the nine months ended December 31, 2022, the company generated revenues of $2.7 million and gross profit of 1.2 million.”

Wiz Khalifa Connection

“While the launch dates have been pushed back a bit, we are very pleased with the progress of the behind-the-scenes creation of MISTERCAP’s home grow mushroom kits, who will be receiving marketing advisory services from Wiz Khalifa as he plans on leveraging his social media presence to promote these legal mushroom products across Canada, United States, and the European Union,” Shapiro said.

“We are already focused on lining up supply and increased production, as we have purchased a state of the art automated machine to handle all future forecasts for Home Grow Kit production of MISTERCAP’s products in anticipation of their launch, expected Summer 2023, plus Happy Caps’ production as well. Our automated machine from Japan, is expected to be set up at our Partners’ farm in Summer of 2023,” added Mr. Shapiro.

Mushroom Facility

Red Light said it also continues to work with an expert mushroom farm design firm in The Netherlands and experienced Canadian engineers to finish the site plans for the Peterborough project.

With the design phase nearing completion, the company said it plans to submit the finalized engineered stamped plans within the next 4-6 weeks to the Township of Cavan Monaghan in order to begin the approval process as the company seeks to obtain permits for the construction of the mushroom facilities.

Once completed, the Peterborough Farm is expected to immediately generate revenues of approximately $80,000 per week. As it ramps up to its full production capacity, the company said it expects a revenue run rate of approximately $16 million-$17 million per annum with strong profit margins and cash flows from operations.

The mushroom facilities should take roughly 18 months to construct following the submission of the final plans to the township. The cost to build the facilities is estimated to be around $8 million.

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