Ontario-based mushroom grower Red Light Holland Corp. trough filed its interim financial results for the third fiscal quarter ended December 31, 2022 and nine months 2023.
Figures show revenue growth of 88.9% and 158% for the three and nine month periods ended December 31, 2022, from $458.658 to $866.265 (CA$1.2 million) and $1.3 million to $2 million, respectively, compared to The term expired on December 31, 2021.
Revenue growth represented the consolidation of recent acquisitions and increased activity levels, particularly increased production levels at Acadian Exotic Mushrooms Ltd. (AEM) and sales and brand growth of Happy Caps Mushroom Home Grow Kits.
Gross profit, representing 50% of sales, “has generated strong results through improvements in production efficiencies and prudent spending,” explains director and CEO Todd Shapiro, adding that the company is looking forward to “some near-term announcements,” including a letter of intent. is also exploring potential M&A opportunities”. CPG with a company in the Mushroom category.
Cash totaled $14.5 million as of December 31, 2022, compared to $19.2 million as of March 31, 2022.
Net loss for the three and nine months ended December 31, 2022 was $967.330 and $3.1 million, respectively, compared to $889.477 and $4.8 million for the same period in 2021.
CFO David Escott said the company’s financial position and liquidity “remain strong,” and it holds “sufficient capital” to fund its ongoing business development and future expansion plans.
“We’re excited to put our strong cash position to work for us while focusing on expansion and future revenue growth,” Shapiro said. “Red Light Holland, its Board of Directors and management are always focused on growing our overall mushroom business, driving near-term revenue growth while we await optimistic catalysts in the potential legal psychedelic market. However, until then, We plan to make different types of mushrooms sexy with the ultimate goal of increasing shareholder value.”
Farm Extension, Home Grow Kit and Magic Truffle Microdosing Capsules
The operations of Netherlands-based Minichamp BV are now fully integrated into Red Light Holland. Meanwhile, New Brunswick-based majority-owned AEM is operating at 80-90% capacity and will soon commission two new mushroom production facilities with a total footprint of 65,000 square feet. Jointly called Peterborough Farm, the building construction cost is estimated to be $5.9 million. , and the immediate weekly revenue would be around $60,000.
Red Light Holland is ready to apply for a Canadian CDS Dealer’s License For psilocybin production, research and development at the New Brunswick mushroom production facility.
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For the time being, the company is focused on sales and brand development with HappyCaps Lions Men, Oyster and Shiitake Home Grow Kits, available at over 90 retail locations across Canada, and the soon-to-be-launched MisterCaps Home Grow Kits. Is moving forward. Grow Mushroom Kit which will include wiz khalifa support,
Red Light Holland is also working with Ccrest Labs in Montreal to develop a homologous psilocybin truffle for its wholly owned subsidiary Mera Life Sciences LLC (renamed Scarlet Lily Sciences & Innovation) set to operate in St. Vincent and the Grenadines. Microdosing capsules can be developed.
The research will assess 3,000 grams of natural psilocybin truffles grown in the Horst, Netherlands facility, which have already been approved by Health Canada for import into CCrest.
SR Wholesale BV, a wholly owned subsidiary of Red Light Holland in the Netherlands, operates efficiently and currently distributes a large amount of Magic Truffles to the country’s market through Smartshop, including the company’s own “responsible-use psychedelic” brands, eight Varieties make up the Magic Truffles line and iMicrodose Magic Truffles is supported by education, information, community events and online consultation support.
Retail store news includes a rebrand of the OSS and Utrecht stores with new designs, expanded product offerings and potentially new locations.
Photo: Publicdomain pictures on pixabay and Benzinga edit with photos by Sergitokmakov.