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Red Light Holland to Host a Live Stream on the Company’s Social Media Handles, Including www.youtube.com/redlightholland at 8:30 am Eastern Time on Thursday, June 17th
Creso Pharma and Red Light Holland have entered into a definitive agreement to merge their businesses and create The HighBrid Lab
Ï The HighBrid Lab is expected to have an implied pro forma equity value of C$347 million (A$371 million) based on the closing price of the shares of Creso Pharma and Red Light Holland on June 15th, 2021
Ï Transaction results in a reverse takeover of Red Light Holland by Creso Pharma, with an implied premium to Red Light Holland Shareholders of 29.9% based on the 30-day VWAP of both companies as of June 15th, 2021
Ï Mr. Bruce Linton, leading cannabis and psychedelics entrepreneur, expected to join as Non-Executive Chairman of The HighBrid Lab’s board of directors
Ï Combined Company is expected to have a cash balance of approximately C$45 million (A$48 million), providing considerable financial flexibility to progress its growth strategy
Ï The Combined Global Company will trade on the Canadian Securities Exchange (“CSE”) under the ticker symbol TRIP
Ï The HighBrid Lab will focus on several key growth areas:
Ï Expanding market and brand leadership in recreational psilocybin, supported by education, telecounseling and technology as new markets open
Ï Applied science and innovation supporting long-term opportunities in psychedelics with both naturally occurring and pharmaceutical grade drug discovery aiming for advanced and approved product offerings through controlled lab environments via the pending acquisitions of Halucenex and Mera Life Sciences
Ï Scaling recreational cannabis offering in North America by focusing on increasing market share in Canada and taking advantage of the Combined Company’s CSE listing to progress the introduction of products into the US, as well as leveraging industry leading expertise to execute US cannabis acquisitions in the near term (the US is the world’s largest cannabis market, expected to reach US$41Bn/A$53Bn by 2025[i])
Ï Enhanced European distribution of Creso Pharma’s researched and developed human and animal CBD products through SR Wholesale, Red Light Holland’s wholly owned Netherlands based distribution company
Ï Introducing unique, innovative and eye-catching recreational product offerings under existing Red Light Holland brands with innovative applied science including combined CBD and mushroom products and ready to drink products with mushrooms, CBD and THC, while focusing on adding adjacent iMicrodose product lines with ingredients including CBD, THC and functional mushrooms, as and where permitted to do so, and promoting responsible use via education and information
Ï Creation of Red Light Farms, increasing exposure to growing operations; adding to the Combined Company’s already impressive line-up including The Red Light Truffle Farm in the Netherlands, Happy Caps Gourmet Mushroom Farm and Mernova Medical in Nova Scotia
Ï Increasing vertical integration strategies from growing, harvesting, packaging, branding and distribution to potential brick and mortar stores for increased sales focused on higher margins
Ï Expanding e-commerce presence and online store initiatives to help boost future sales of CBD, THC, psilocybin, and functional mushroom products, where permissible
Ï Using biometric movement and scientific data and technology from Radix Motion to help find optimal dose and protocol for individuals, and to work with regulatory agencies towards expanding the legal, responsible use of psilocybin, THC and CBD in emerging countries focused on stricter controls
Ï Continuing to grow one of the world’s most recognizable legal recreational psilocybin brands while crossing over into the cannabis sector with a focus on increasing creative and experiential marketing, brand development and added influencer support
Ï Sustainable approach with consideration for the long term social, environmental, and economic impacts
Ï Red Light Holland’s current Chief Executive Officer, Todd Shapiro, will lead the Combined Company as CEO and Director. The Combined Company’s board of directors will consist of seven members, three of which, including Mr. Shapiro, will be current directors of Red Light Holland, and three of which, will be directors or nominees of Creso Pharma. Mr. Bruce Linton is expected to be the seventh member, as non-executive Chairman
Ï Mr. William Lay, previously Associate Director, M&A at Canopy Growth appointed Executive Vice President and Chief Strategy Officer to assist in growth trajectory – Mr. Lay has overseen and/or supported over C$5Bn in cannabis M&A transactions
Ï Newly formed company can be accessed online at www.HighBrid.co
Sydney, Australia & Toronto, Ontario–(Newsfile Corp. – June 16, 2021) – Creso Pharma Limited (“Creso Pharma”) (ASX: CPH) (FSE: 1X8) (OTCQB: COPHF), a producer of cannabis products designed to better the lives of people and animals, and Red Light Holland Corp. (“Red Light Holland”) (CSE: TRIP) (FSE: 4YX) (OTC Pink: TRUFF), an Ontario-based corporation engaged in the production, growth and sale of magic truffles to the legal, recreational market within the Netherlands, are pleased to advise that they have entered into a definitive scheme implementation deed (the “Deed”) to combine businesses and create The HighBrid Lab (the “Combined Company” or “The HighBrid Lab”), a leading global psychedelics and cannabinoid company.
The HighBrid LabTM
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The transaction will be carried out by way of statutory schemes of arrangement under the Corporations Act 2001 (Cth), pursuant to which Red Light Holland will acquire (i) all of the issued fully paid ordinary shares of Creso Pharma (the “Scheme”), and (ii) all of the issued listed options of Creso Pharma (the “Option Scheme”) in exchange for the issue of common shares of Red Light Holland (“Red Light Holland Shares”) on the terms and conditions set forth in the Deed. Under the terms of the Deed, the shareholders of Creso Pharma (the “Creso Pharma Shareholders”) will receive 0.395 of a Red Light Holland Share for each fully paid ordinary share of Creso Pharma (each, an “Creso Pharma Share”) held immediately prior to the effective time of the Scheme. In addition, (i) holders of listed options of Creso Pharma (the “Creso Pharma Listed Optionholders”) will receive 0.257 of a Red Light Holland Share for each listed option of Creso Pharma (each, a “Creso Pharma Listed Option”) and (ii) holders of the various other classes of unlisted Creso Pharma securities will be offered Red Light Holland options or warrants based on ratios detailed in the Deed.
Upon implementation of the Scheme and the Option Scheme (together, the “Schemes”), it is expected that the former Creso Pharma securityholders will own approximately 57.4% of the pro forma issued and outstanding Red Light Holland Shares, resulting in a reverse takeover of Red Light Holland by the Creso Pharma security holders. Following implementation of the Schemes, the Combined Company is expected to have a cash balance of approximately C$45 million (A$48 million), providing considerable financial flexibility to progress its growth strategy.
About Red Light Holland
Red Light Holland strives to move towards safe and trustworthy access to psychedelic compounds for all, and is engaged in the production, growth and sale, through existing Smart Shops and an ecommerce platform, of premium magic truffles to the legal, recreational market in the Netherlands. Activities are undertaken in accordance with the highest…