Toronto, Ontario--(Newsfile Corp. - March 3, 2026) - Red Light Holland Corp. (CSE: TRIP) (FSE: 4YX) (OTCQB: TRUFF) ("Red Light Holland" or the "Company"), an Ontario-based organization advancing a focused strategy within the legal psychedelic sector, centered on consensual data collection and research and development ("R&D") initiatives designed to expand naturally occurring drug development, understanding of psilocybin use and consumer experiences, which in parallel, operates commercial activities across Europe and North America, including psilocybin truffle sales in the Netherlands' legal market and mushroom home grow kits offered through business-to-business ("B2B") and direct-to-consumer ("DTC") channels, in compliance with applicable laws, announces its financial and operational results for the three and nine months ended December 31, 2025 ("Q3 2026"). All figures are reported in Canadian dollars. The Company's full set of the unaudited condensed interim consolidated financial statements and accompanying management's discussion and analysis can be accessed by visiting the Company's website at www.RedLight.co and its profile page on SEDAR+ at www.sedarplus.ca.
Key Financial Highlights for Q3 2026 vs Q3 2025:
- Total Cash Balance: $9.238M ($10.226M as at September 30, 2025).
- Total net use of cash for the Three Months ended December 31, 2025: $0.989M (up $1.493M in net use of cash compared to a total net cash increase of $0.504M in Q3 2025)
- Revenue for the Three Months ended December 31, 2025: $1.265M (up 8.3% from $1.168M in Q3 2025).
- Gross Profit for the Three Months ended December 31, 2025: $0.358M (down 13.7% from $0.415M in Q3 2025).
- G&A expenses for the Three Months ended December 31, 2025: $1.199M (down 15.8% from $1.423M in Q3 2025, primarily from decreases in consulting and management fees, and legal and other professional fees).
- Adjusted EBITDA1 Loss for Three Months ended December 31, 2025: $0.711M (Adjusted EBITDA1 Loss up 4.5% from $0.681M from Q3 2025).
- Total Assets: $18.200M ($19.018M as at September 30, 2025).
- Excess Cash: Invested in additional Bitcoin ETFs, with excess funds parked in high-interest savings vehicles.
- Use of cash in Q3 2026 relates to the Company's purchase of new investments for $0.313M and incurrence of overheads from both the Netherlands' and Canadian operations.
Todd Shapiro, CEO and Director of Red Light Holland, commented:
"Compared to the third quarter of 2025 ("Q3 2025"), the financial performance in Q3 2026 reflects our unwavering commitment to sustainable growth, while maintaining disciplined cash management and operational responsibility. We were encouraged to see sales return to normalized levels following the downturn experienced in the prior quarter, as revenue was up $0.511M, or 67.7%, as compared to our second quarter. In addition, we have elected to cease shiitake mushroom production operations at AEM, in partnership with our minority partners in New Brunswick, as part of our ongoing efforts to streamline the business and prioritize near-profitable or profitable operations. Most importantly, we continue to actively evaluate strategic M&A opportunities from a position of strength, as the Company remains in a solid financial and operational position, supported by disciplined cash spending and reduced G&A expenses."
"As we continue evolving into an R&D-driven organization supported by a solid balance sheet, we are seeing increasing inbound interest from groups seeking collaboration or access to capital, further reinforcing Red Light Holland's reputation as a credible and well-capitalized participant in the sector. Looking ahead, emerging global opportunities in psilocybin research and regulatory advancement are becoming increasingly compelling. As these markets develop, we are prioritizing targeted R&D initiatives that we believe can drive long-term value creation and position the Company for its next phase of responsible and impactful growth."
Key Updates:
Research and Development (Psilocybin):
- Red Light Holland's FDA-Compliant, DEA-Registered Partner Irvine Labs: In November 2025, Irvine Labs received a second larger shipment of 5kg of natural Psilocybin products, which marks a major milestone following the initial shipment in July. This shipment was processed under Irvine Labs' existing 2025 DEA quota allocation and will support expanded R&D activities, including further validation of proprietary dehydration and packaging processes designed to significantly extend shelf life while maintaining product integrity. Shipment and customs delays, together with possible packaging-related factors, impacted product condition upon arrival, resulting in test results below internal quality benchmarks.
- Red Light Holland and Irvine Labs continue to have discussions towards developing processes for the commercial manufacture of microdosing capsules derived from naturally occurring psilocybin truffles, aimed at emerging therapeutic markets, government-funded pilot programs, and clinical trials.
- ASU Partnership: Collaboration with Arizona State University on the Psychedelic Genome Project led by Dr. Candace Lewis to better understand the genetic factors influencing psilocybin response.
- Future R&D Projects: The Company is reviewing its portfolio and evaluating the potential sale or suspension of certain operations in order to reallocate capital toward R&D initiatives in psilocybin distribution and drug development, and discovery.
Wholesale and CPG:
- SR Wholesale: The Company's wholly-owned Netherlands subsidiary, SR Wholesale continues to see steady growth and cash flow generation by focusing on sales of the Company's farm grown psilocybin Truffles to over 125 retail stores with expansion of product lines and well-established distribution channels. The business segment continues to operate efficiently despite the slowing of tourism in the Netherlands.
- Albertsons Breakthrough: Expanded partnership with Albertsons following our entry into the U.S. retail market under the Safeway banner with Happy Caps Mushroom Home Grow Kits. Further discussions are continuing with Albertsons.
- Happy Caps Innovation: Health Canada-approved Functional Mushroom Gummies (NPN #80137179) launched and were available on Amazon but were removed during the period. Management is actively working toward having the product relisted and continues to explore alternative online sales channels.
- The Functional mushroom gummies have also successfully passed six months of accelerated and regular stability lab tests conducted and accredited by Canadian Lab partner, CCrest Laboratories.
- Pilot Program: Launched programs in London's Real Canadian Superstore ("RCSS") for our Functional mushroom gummies. However, RCSS did not expand the product into additional store locations during the period. The Company continues to pursue additional retail partnerships to support distribution, alongside our DTC channel.
- Mini-Champ: Sales also rebounded significantly in Q3 2026 in the Netherlands due to an anticipated boom in sales from the holiday season. The Company continues to monitor the long-term vision of MiniChamp.
M&A Activity:
- Management is actively engaged in discussions and evaluations of potential M&A opportunities as part of a strategic pivot toward research-driven businesses and assets that can strengthen our R&D initiatives. There can be no assurance that these discussions will result in a completed transaction. Further updates will be provided as appropriate.
Challenges and Opportunities:
- Happy Caps: Sales rebounded during Q3 2026, as anticipated, from sales recorded from the holiday season following increased Amazon and HappyCaps.ca sales plus the expanded partnership with Albertsons.
- AEM New Brunswick: Sales remained stagnant in Q3 2026 due to continued challenges facing the overall fresh mushroom industry. In December 2025, the Company and its farming minority partners decided to suspend the Shiitake mushroom production and sales at the AEM Farm. Since then, the Company has decided to shut down shiitake mushroom production operations at AEM. The Company and its minority partners have now agreed to start selling off assets, including trollies, a tractor, and a mixer, to generate cash to help pay off creditor debt. The AEM board has also initiated the process to find a realtor with the aim of listing the commercial property for sale in New Brunswick in the near future.
- AEM Ontario (Peterborough): The Company remains in advanced discussions with a group that has formally confirmed its interest to purchase 100 percent of the rights to the farmland, plans, and permits, for an estimated price of $2.5m to $2.6m. However, no definitive agreement has been entered into, and any potential transaction would be subject to due diligence, negotiation of definitive documentation and customary closing conditions. There can be no assurance that any transaction will be completed on terms currently contemplated or at all.
Looking Ahead:
Management continues to evaluate strategic opportunities within a disciplined capital allocation framework. The Company's cash and asset position provides flexibility as it considers these options. From time to time, the Company receives inquiries from third parties regarding potential growth capital or operational support arrangements.
About Red Light Holland:
Red Light Holland is an Ontario-based organization advancing a focused strategy within the legal psychedelic sector, centered on consensual data collection and R&D initiatives designed to expand naturally occurring drug development, understanding of psilocybin use and consumer experiences. In parallel, the Company operates commercial activities across Europe and North America, including psilocybin truffle sales in the Netherlands' legal market and mushroom home grow kits offered through B2B and DTC channels, in compliance with applicable laws.
For additional information on the Company:
Todd Shapiro
Chief Executive Officer & Director
Tel: 647-204-7129
Email: todd@redlight.co
Website: www.RedLight.co
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current conditions but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Often, but not always, forward-looking statements and information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its respective subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Examples of such information include statements with respect to: the Company's research and development initiatives involving psilocybin products (including dehydration, packaging, validation and potential commercialization initiatives) and related collaboration discussions; the Company's expectations regarding partnerships and commercialization initiatives (including retail distribution initiatives and product availability on third-party platforms); the Company's evaluation of strategic alternatives, including potential dispositions, suspensions or reallocations of capital among operations; potential corporate transactions, including strategic collaborations and M&A opportunities; the timing and outcome of any potential asset sales and the process of monetizing certain assets; and treasury and investment strategy, including potential investments in exchange-traded products linked to cryptocurrencies.
Forward-Looking information in this news release are based on certain assumptions and expected future events, namely: continued ability to conduct the Company's activities in the jurisdictions in which it operates in compliance with applicable laws and regulatory requirements; the performance of, and continued relationships with, third-party partners and research collaborators; the ability to maintain product quality and manage logistics, including shipping and customs processes; the ability to access and retain personnel and resources required to execute on R&D and commercialization initiatives; general business, market and economic conditions (including consumer demand, competitive dynamics, inflationary pressures and tourism trends in relevant markets); and, where applicable, the ability to negotiate and execute definitive agreements and satisfy closing conditions for any potential transactions or asset sales.
Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, namely: regulatory or enforcement developments affecting the Company's business lines; the risk that R&D initiatives, validation processes or product development do not progress as anticipated; product quality, manufacturing or packaging risks (including issues arising during transit); supply chain disruption and shipping delays; the risk that discussions regarding collaborations, M&A or other strategic transactions do not result in definitive agreements or completed transactions; the risk that anticipated benefits of operational changes, cost reductions or reallocations of capital are not realized; adverse changes in market conditions or consumer demand; foreign exchange and cross-border operational risks; and volatility and market risks associated with cryptocurrency-linked investments.
Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
1 Earnings before interest, taxes, depreciation, and amortization ("EBITDA") and adjusted EBITDA. These measures do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and are, therefore, unlikely to be comparable to similar measures presented by other issuers. Non-IFRS measures provide investors with a supplemental measure of the Company's operating performance and, therefore, highlight trends in the Company's core business that may not otherwise be apparent when relying solely on IFRS measures. Management uses non-IFRS measures in measuring the financial performance of the Company.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/286088
Source: Red Light Holland Corp.
