21:33:52 EDT Fri 26 Apr 2024
Enter Symbol
or Name
USA
CA



Red Light Holland Corp
Symbol TRIP
Shares Issued 335,262,421
Close 2022-07-18 C$ 0.075
Market Cap C$ 25,144,682
Recent Sedar Documents

Red Light Holland clarifies Mistercap partnership

2022-07-18 12:43 ET - News Release

Mr. Todd Shapiro reports

RED LIGHT HOLLAND AND MISTERCAP LLC PARTNERSHIP UPDATE

Red Light Holland Corp. has provided this clarification and update with additional information regarding its partnership with Mistercap LLC.

The partnership created by Red Light Holland and Mistercap for the new mushroom wellness brand, called Mistercap, will initially launch with a functional mushroom home grow kit, allowing customers to grow their own legal mushrooms in the comfort of their own homes, expected to be sold in Q4 2022. From there, the companies intend to expand to other legal, functional and innovative mushroom products as well as a line of apparel and accessories to be made available across the European Union and North America in early 2023. Further, Mistercap will be receiving marketing advisory services from multiplatinum-selling, Grammy and Golden Globe Award nominated recording artist Wiz Khalifa for the new Mistercap brand, who will leverage his social media presence to promote legal mushroom products.

The Mistercap brand, in conjunction with Red Light Holland, is also committed to creating educational and responsible use messaging in relation to the use of any products made available by the brand. Red Light Holland and Mistercap will share further details on the Mistercap products, team and vision in the weeks to come. Mistercap products will be intended to help promote a healthy lifestyle. No Mistercap products are intended to treat or cure any medical conditions and are in no event a substitute for professional medical care. No statements made by Red Light Holland, Mistercap or Wiz Khalifa have been evaluated by the U.S. Food and Drug Administration or any other similar body of another jurisdiction, and are in no event a substitute for professional medical care. Red Light Holland, Mistercap and Wiz Khalifa encourage all consumers to speak with their doctors and professional medical advisers for any solutions that may be appropriate for each person individually.

Transaction details

As has previously been disclosed, in connection with launching the Mistercap brand, Red Light Holland and Mistercap have entered into an intellectual property licensing agreement. Pursuant to the terms of the IP licensing agreement, Mistercap shall exclusively license certain intellectual property held by Mistercap to Red Light Holland to develop, cultivate, process, package, distribute and sell mushroom-related and/or truffle-related products under the Mistercap brands. The initial term of the IP licensing agreement shall be for three years and shall be automatically renewable for one-year successive terms upon Red Light Holland continuing to hit certain benchmark sales targets. As partial consideration for the licence, Mistercap will be paid: (i) $250,000 in cash; and (ii) $1-million, which is to be satisfied through the issuance of common shares in the capital of Red Light Holland at a price of 7.5 cents per common share. The common shares will be subject to a four-month-and-one-day hold period pursuant to the policies of the Canadian Securities Exchange and applicable securities laws. In addition, Mistercap will: (x) receive monthly royalty payments paid over the term of the IP licensing agreement, calculated based on the sale of products developed pursuant to the partnership; and (y) be paid a monthly marketing fee. Additional payments are due in the event future markets are available to sell in pursuant to the terms of the IP licensing agreement. The company has budgeted $1-million per year to fulfill royalty fees, marketing expenses and additional payment obligations owed to Mistercap, pursuant to the terms of the IP licensing agreement. The company plans on reallocating a majority of the $1.8-million marketing budget outlined under the heading "Use of Proceeds and Milestones" in the company's management discussion and analysis for the nine months ended Dec. 31, 2021, toward growing the Mistercap brand.

About Red Light Holland Corp.

The company is an Ontario-based corporation that specializes in the mushroom industry, and specifically home grow kits for functional natural mushrooms, while positioning itself to engage in the production, growth and sale (through existing smart shop operators and an advanced e-commerce platform) of a premium brand of magic truffles to the legal, recreational market within the Netherlands, in accordance with the highest standards, in compliance with all applicable laws.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.