Red Light Holland's Q3 2023 Financials: Expanded Farms Division, Home Grow Kits & Revenue Increase

Ontario-based mushrooms producer Red Light Holland Corp. TRUFF filed its interim financial results for the third fiscal quarter of 2023 -three and nine months- ended December 31, 2022.

Numbers show a revenue increase of 88.9% and 158% for the three and nine-month periods ended Dec. 31, 2022, increasing to $866.265 (CA$1.2 million) from $458.658 and to $2 million from $1.3 million, respectively, compared to the same periods ended Dec. 31, 2021.

The revenue growth represents the consolidation of recent acquisitions and increased activity levels, specifically 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 to production efficiencies and prudent spending,” explains director and CEO Todd Shapiro, adding that the company is also exploring “some near-term potential M&A opportunities” including a letter of intent with a company in the CPG mushroom category. 

Total cash by Dec. 31, 2022, was $14.5 million, as compared to $19.2 million by March 31, 2022.

Net loss for the three and nine months ended Dec. 31, 2022, was $967.330 and $3.1 million respectively, as compared to $889.477 and $4.8 million for the same periods of 2021.

CFO David Ascott stated that the company’s financial position and liquidity “remain strong,” and holds “sufficient capital to fund its ongoing business development and future expansion plans. 

“We are excited to put our strong cash position to work for us with expansion and future revenue growth in mind,” added Shapiro. “Red Light Holland, its board of directors and 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."

Farm Expansion, Home Grow Kits & Magic Truffle Microdosing Capsules 

Netherlands-based MiniChamp B.V.’s operations are now fully integrated into Red Light Holland. Meanwhile, New Brunswick-based majority-owned AEM is operating at 80-90% capacity and will soon hold two new mushroom production facilities with an aggregate footprint of 65,000 sq. ft.  Jointly called the Peterborough Farm, building costs are estimated at $5.9 million, and immediate weekly revenues would round the $60,000.

Red Light Holland is set to apply for a Canadian CDS dealer's license for psilocybin production, research and development at the New Brunswick mushroom production facility.

See also: Psychedelic Therapy Boosted By 3D Movement Data? This Company Is Aiming To Patent The Combination

For the moment, the company has focused on sales and brand growth with Happy Caps lion's mane, oyster and shiitake home grow kits, which are available at over 90 retail locations across Canada, and is advancing a soon-to-be-launched MISTERCAP's home grow mushroom kits which will include Wiz Khalifa’s support. 

Red Light Holland is also working with CCrest Labs in Montreal to develop a homogenized psilocybin truffle microdosing capsule for its wholly-owned subsidiary Mera Life Sciences LLC (renamed Scarlette Lillie Sciences and Innovation), set to operate in St. Vincent and the Grenadines. 

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 to import to CCrest. 

Businesses Abroad

Red Light Holland’s wholly-owned subsidiary SR Wholesale B.V. in the Netherlands runs efficiently and currently distributes large volumes of magic truffles to the country’s market through SmartShops, including the company's own “responsible-use psychedelic” brands, the eight varieties make magic truffles line and the iMicrodose magic truffles supported by education, information, community events and online counseling support. 

Retail shop news includes the rebrand of Oss and Utrecht stores with new designs, expanded products offer and potentially new locations.

Photo: Benzinga edit with photo by PublicDomainPictures and sergeitokmakov on Pixabay.