Mr. Todd Shapiro reports

RED LIGHT HOLLAND CLOSES ACQUISITION OF 100 ACRES OF FARMLAND IN ONTARIO, CANADA EXPANDING ITS MUSHROOM FARMS DIVISION IN NORTH AMERICA

Red Light Holland Corp. has closed its previously announced acquisition of 100 acres of farmland located at in the township of Cavan-Monaghan in Peterborough, Ont., for $1.85-million paid in cash from treasury.

Strategic highlights

The company intends to work with Acadian Exotic Mushrooms Ltd. (AEM Farms), an operational gourmet mushroom production facility in New Brunswick, Ont., which is majority owned by Red Light (as previously disclosed on Sept. 7, 2021), and co-owned by leading Canadian mushroom farming groups/individuals Holburne Mushroom Farm, and Mike and Fernando Medeiros, who co-own Carleton Mushroom Farms, to develop the farm into approximately 65,000 square feet of two mushroom production facilities (to be called AEM Ontario). The acquisition will enable the company to dramatically expand its farm division, which already includes Happy Caps Gourmet Mushroom Farm in Halifax, N.S., AEM Farms in New Brunswick, Ont., and Red Light's truffle farm in Horst, the Netherlands. The company has already started engineered plans on AEM Ontario and expects to start construction in the summer of 2022 as planning and productive conversations with the township of Cavan-Monaghan continue.

"We are extremely confident at Red Light because of how prudent we have been at running our psychedelic business, preserving cash at a time when most of our peers are straining to attract new capital. Red Light Holland on the other hand, has a significant cash position as we are clearly focused on increasing revenues while having a strategic and aligned plan to grow, in order to weather difficult markets and harder economic times," said Todd Shapiro, chief executive officer and director of Red Light. "As I've said before, we have a clear direction and don't mind being patient as we aim on growing now and in the future. I'm very excited for this summer as we are also aiming to make some more significant announcements. We look forward to updating the market when AEM Ontario commences operations and in the meantime, we are pleased to add a strong asset on the books -- a beautiful piece of Ontario farmland with a stunning farm house for future employees," added Mr. Shapiro.

"I maintain that Todd has a clear and confident vision to accelerate growth in a proven mushroom industry that fuels the expansion of the close cousin, psilocybin," said Bruce Linton, chair of Red Light's advisory board. "As Todd continues to innovate, lead and push the limits, like no other company in the recreational psychedelic sector, he also grows partnerships with industry leaders. It's a great strategy. I'm proud to be a part of this clever, creative and fun team who are focused on continued growth," added Mr. Linton.

"The purchase of 100 acres of farmland will provide AEM Farms with another great opportunity, which we feel will be very successful," said Mike Medeiros, co-owner of Carleton Mushroom Farms and president of Mushrooms Canada. "As planning continues and the permit process begins, we look forward to starting to build an advanced world-class mushroom farm -- so innovative and unique in fact, that only a few like it exist in the world," added Mike Medeiros.

About Mike Medeiros and Fernando Medeiros and Holburne Mushroom Farm

Carleton Mushroom Farms was founded in 1984 by Mike Medeiros and Fernando Medeiros's parents and remains a family-run business. Mike Medeiros and Fernando Medeiros took over day-to-day operations in 2005. In recent years growing capacity has tripled, and yields have steadily increased to 12 million pounds per year. Carleton Mushroom Farms implements cutting-edge technologies from around the world as part of its growing practices.

Holburne Mushroom Farm is a local family owned and operated business that specializes in growing fresh, organic shiitake and oyster mushrooms since 2005. Production of organic shiitake and oyster mushrooms has steadily increased to current yield of 1.3 million pounds per year. Proudly, the largest fresh, organic shiitake mushroom growers in Canada.

About Red Light Holland Corp.

The company is an Ontario-based corporation engaged in the production, growth and sale (through existing smart shops operators and an advanced e-commerce platform) of a premium brand of magic truffles to the legal market within the Netherlands.

We seek Safe Harbor.