Mr. Todd Shapiro reports

RED LIGHT HOLLAND REPORTS 2022 AUDITED YEAR END RESULTS

Red Light Holland Corp. has completed the process of filing its audited annual financial statements and management discussion and analysis for the financial years ended March 31, 2022 and 2021.

Highlights include:

• Cash balance of $26.1-million at March 31, 2022;
• Full year revenues of $2.3-million;
• Property and equipment value of $2.9-million;
• Total assets of $33-million.

"During our fiscal 2022 year we closed on four important acquisitions (Radix Motion, Happy Caps, AEM Farms and Mera Life Sciences) that have reshaped our current position and road map ahead. Through these acquisitions we have added to our team, developed strong partnerships and have acquired tangible assets, in the form of farm production facilities. I am pleased to announce for fiscal 2022 our revenue was over $2.3-million and gross profit over $600,000. We realized growth in both the Netherlands and Canada through SR Wholesale and Happy Caps, as increased revenue and gross profit remains our core focus. We are on track with the strong foundation that we are building, and we are excited about future revenue generation with AEM New Brunswick, which is now in early-stage production, AEM Peterborough, now in early-stage planning, current and future CPG expansion, and other potential strategic acquisitive opportunities," said Todd Shapiro, Red Light Holland chief executive officer and director. "Most recently we are also very excited to work with Mistercap LLC with marketing advisory services from the one and only Wiz Khalifa. As well, we have now officially closed our acquisitions of two SmartShops in Oss and Utrecht, the Netherlands. We are confident in our fully vertically integrated strategy and we cannot wait to start rebranding our wholly owned SmartShops to Wellness World in the coming months."

Mr. Shapiro added: "Our mission remains: to provide affordable and equitable adult access to naturally occurring psilocybin via technology, education, information and responsible use. As you know, I love marketing and brand building; we will push even harder in the near future with impactful marketing strategies with the continued goal of Red Light Holland being the leader in the Rec and Tech psychedelic sector. We will provide updates shortly regarding Scarlette Lillie Science and Innovation (MERA) in St. Vincent, Wisdom Truffle presales, and we continue to identify and analyze near-term acquisition transactions while remaining cautious with our spending habits. I'm very proud of our energetic and passionate Red Light Holland team as we keep delivering, while carefully putting the pieces of this big beautiful psychedelic puzzle together. I am grateful for our shareholders' continued support. Feel free to contact me any time with the e-mail provided below."

With regard to the strength of the current financial position, David Ascott, Red Light Holland chief financial officer, added: "Our financial position and liquidity remains strong, and the company currently has sufficient capital to fund its ongoing business development and future growth and expansion plans for the foreseeable future. The working capital as at March 31, 2022, is $25-million which includes $26.1-million of cash and cash equivalents. During the year, we recorded a non-cash impairment loss against the intangible assets and goodwill in the amount of $5.9-million. Through our acquisitions we added tangible capital assets including a mushroom production facility in New Brunswick valued at $2.5-million."

Summary of the year ended March 31, 2022

• Revenue of $2,325,589 (2021 -- $110,956) generating gross profit of $617,676 (2021 -- $19,349) resulting in a gross margin percentage of 26.6 per cent (2021 -- 17.4 per cent);
• Continued balance sheet strength including cash in the amount of $26,093,738;
• Property and equipment value $2,877,298;
• Total asset value $32,938,665;
• The net loss for the year of $14,695,173, loss of four cents per share (2021 -- $1,644,828, loss of one cent per share), was significantly influenced by non-cash charges relating to the impairment of intangible assets and goodwill in the amount of $5,937,015 (2021 -- nil) and stock-based compensation of $3,198,720 (2021 -- $1,582,623);
• Four acquisitions were completed during the year ended March 31, 2022 (Radix Motion, Happy Caps, AEM Farms and Mera Life Sciences).

The audited financial statements and management's discussion and analysis for the year ended March 31, 2022, are now available on SEDAR.

About Red Light Holland Corp.

The company is an Ontario-based corporation engaged in the production, growth and sale of functional mushrooms and mushroom home grow kits in North America, and a premium brand of psilocybin truffles to the legal, recreational market within the Netherlands, in compliance with all applicable laws.

We seek Safe Harbor.