Mr. Todd Shapiro reports

RED LIGHT HOLLAND REPORTS FIRST QUARTER 2022 FINANCIAL RESULTS

Red Light Holland Corp. has filed its financial results for the first fiscal quarter of 2022 ended June 30, 2022, the highlights of which are included in this news release. The condensed interim consolidated financial statements for the three months ended June 30, 2022, and the accompanying management's discussion and analysis (MD&A) can be accessed by visiting the company's website and its profile page on SEDAR.

"I am pleased to announce that for our first fiscal quarter of 2022, we generated revenue of $785 thousand and gross profit of $289,000, an increase of 31.9 per cent and 202.1 per cent, respectively, compared to the same quarter last year. Considering Red Light Holland's short history, and the very early innings of the psychedelic sector, we are very proud of our accomplishments and cautious spending to get there," said Todd Shapiro, chief executive officer and chairman of Red Light Holland. "We continue to build a strong foundation based upon operational excellence, customer satisfaction and brand awareness which have been the drivers for our revenue growth. We are now fully vertically integrated in the Netherlands, and we are expanding in both Canada and the United States. Near-term future revenue growth opportunities will be realized through our increasing production capacity at Acadian Exotic Mushrooms Ltd.'s (AEM) operational gourmet mushroom production facility in New Brunswick and the addition of our two new retail stores in Oss and Utrecht. Currently we are pleased with the year-over-year sales growth at both Happy Caps in Halifax and SR Wholesale in Schijndel. Down the road, we are also excited about the development of an additional AEM production facility in Peterborough, as discussed in our MD&A. Overall, our focus and goal of expanding production, distribution, branding and sale of our consumer-packaged goods has given us a great jump out of the gate. Oh, and working with Wiz Khalifa as we build out the Mistercap's brand is very exciting as we anticipate making noise as we get closer to market with the Mistercap's products. Our mission remains: to provide affordable and equitable adult access to naturally occurring psilocybin via technology, education, information and responsible use. I am grateful for our shareholders' continued support and our team's hard work. As always, feel free to contact me any time with the e-mail provided below. [hastag] Freethemagic."

With regards to the strength of the current financial position, David Ascott, chief financial officer of Red Light Holland, 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 company's working capital as at June 30, 2022, was $22.8-million which included $23-million of cash and cash equivalents. During the first fiscal quarter of 2022, the company added $1.9-million in property and equipment through the acquisition of 100 acres of farmland near Peterborough, Ont."

Summary of the three months ended June 30, 2022:

• Revenue of $785,000 (2021 -- $595,000), generating gross profit of $289,000 (2021 -- $96,000), resulting in a gross margin of 36.8 per cent (2021 -- 16.1 per cent);
• Net loss for the period was $1.3-million, loss of nil per share (2021 -- $3.4-million, loss of one cent per share);
• Continued strong financial position, including cash in the amount of $23-million;
• In June, 2022, the company acquired 100 acres of farmland near Peterborough, Ont., for cash consideration of $1.85-million. The company intends to build 65,000 square feet of enclosed production space for two mushroom production facilities;
• On June 29, 2022, the company entered into a partnership with multiplatinum selling, Grammy- and Golden-Globe-Award-nominated recording artist Wiz Khalifa, to launch a new mushroom wellness brand called Mistercap through entering into an intellectual property licensing agreement with Mistercap LLC. For more information, please see the company's press release dated June 30, 2022;

In addition, the company wishes to announce that the Psy-Fi festival, which Red Light Holland was set to be the lead sponsor and was to take place in September in the Netherlands has been cancelled this year. The company will provide updates on any proposed future relocation and/or rescheduling of the event. The company did not incur expenses and does not owe any future obligations in connection with the cancellation of this event.

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.