Mr. Todd Shapiro reports

RED LIGHT HOLLAND REPORTS SECOND QUARTER 2023 FINANCIAL RESULTS

Red Light Holland Corp., in compliance with all applicable laws, has filed its financial results for the second fiscal quarter of 2023 ended Sept. 30, 2022, the highlights of which are included in this news release. The condensed interim consolidated financial statements for the three and six months ended Sept. 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 second quarter of fiscal 2023, revenue increased 51.6 per cent to $736,000 and gross profit increased 83.3 per cent to $288,000, compared to $486,000 and $157,000, respectively, from the same period last year. Our revenue growth represents both the consolidation of recent acquisitions and increased activity levels, specifically the increased production levels at Acadian Exotic Mushrooms Ltd. Our gross profit, which represents 39.1 per cent of sales, has generated strong results through improvements to production efficiencies and prudent spending. As a result, our net loss has improved from $1.8-million in the prior year to $1.3-million in the current year. We are proving that, as a company involved in the psychedelic sector, that revenues are happening now! As we move forward, we will continue to focus on top-line revenue growth and its conversion to the bottom line," said Todd Shapiro, chief executive officer and director of Red Light Holland.

"Operational excellence, customer satisfaction and brand awareness continue to be the pillars of our foundation and drivers of our future growth. The integration of our two new retail stores in Oss and Utrecht in the Netherlands is now complete, and we continue to develop our Wellness World brand which is expected to roll out early in calendar 2023. Acadian Exotic Mushroom Ltd., now operating at approximately 80-per-cent capacity, continues to increase deliveries of gourmet exotic mushrooms from our production facility in New Brunswick. I am also pleased to report that, subsequent to the quarter end, we closed on our acquisition of MiniChamp BV, a grow-at-home mushroom kit producer, located in Horst, the Netherlands, with existing sales distribution channels throughout the European Union. We have learned a ton since acquiring a majority stake of Happy Caps Mushroom Farm back in June of 2021, and we are proud of their growth and remain confident with our decision to focus on the grow-at-home mushroom kit business strategy. As well, while the launch dates have been pushed back a bit, we are very pleased with the progress of the behind-the-scenes creation of Mistercap's home grow mushroom kits, who will be receiving marketing advisory services from Wiz Khalifa as he plans on leveraging his social media presence to promote these legal mushroom products across Canada, United States, and the European Union. We are already focused on lining up supply and production of the Mistercap products in anticipation of their launch. I'm tremendously excited to present our brand unveil of Mistercap's in the coming weeks. In my opinion -- it'll be worth the wait," added Mr. Shapiro.

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 Sept. 30, 2022, was $20.7-million, which included $20.5-million of cash and cash equivalents. For the six months ended Sept. 30, 2022, the company generated revenues of $1.5-million and gross profit of $577,000."

Summary of the three months ended Sept. 30, 2022:

• Revenue of $736,000 (2021 -- $486,000), generating gross profit of $288,000 (2021 -- $157,000), resulting in a gross margin of 39.1 per cent (2021 -- 32.3 per cent);
• Net loss for the period was $1.3-million, loss of nil per share (2021 -- $1.8-million, loss of one cent per share);
• Continued strong financial position, including cash in the amount of $20.5-million;
• On Oct. 4, 2022, acquired 100 per cent of the issued and outstanding shares of MiniChamp BV, a grow-at-home mushroom kit producer, located in Horst, the Netherlands, with existing sales distribution channels throughout the European Union. The acquisition consideration was composed of 550,000 euros and 981,466 common shares of Red Light Holland. The acquisition agreement also provides for the opportunity for up to 100,000 euros of earn-out payments to be made to the vendor, subject to reaching certain sales milestones.

"While in St. Vincent the regulatory progress has remained slow, we are proud and anticipate working further with CCrest Laboratories Inc., in Canada, for further testing, research and product development with our homegrown psilocybin truffles, from our Netherlands farm. As well, in the last quarter we have continued to work with grassroot movements and regulatory bodies in the United States, and have seen great progress on regulations for legal access to natural psilocybin and microdosing. Voters in Colorado approved a ballot measure legalizing the use of psilocybin, and in Oregon, measure 109's current draft rules allow for group services (with regulations) that are mostly aligned to our recommendation, which will hopefully allow for equitable microdosing services. In Washington state, we have been working with the psilocybin advisory board and our lobbyist has been helping promote a legalization bill for next year's session. On the technology front, we continue to spearhead psychedelic technology, with increased users of our iMicro app, increased deployment of our educational virtual reality in smartshops with the goal of teaching and empowering customers to use natural psilocybin responsibly, while making the most of their experience," said Sarah Hashkes, chief technology and innovation officer of Red Light Holland.

"We have also passed all strict regulatory tests for Wisdom (the Moon version) and we've had very successful user testing of the Moon MindPlay biofeedback game in large festivals and conferences. Finally, regarding the Wisdom truffle, as further discussed in our MD&A, we are a bit delayed in production, but our team has done a tremendous job working through COVID and global supply chain issues. Everything is back on track and soon we will be launching a social media campaign, with approximately 30 social media influencers, with our first round of production of the Moon units and shortly after, we will also start presales. Shareholders and future consumers can expect more details and a robust update on the Wisdom truffle soon. We continue to be very excited to start marketing and ultimately selling Wisdom to the public as soon as possible," added Ms. Hashkes.

"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 anytime at the e-mail provided below. Hashtag freethemagic," concluded Mr. Shapiro.

Red Light Holland and the Mistercap brand are 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 LLC will share further details on the Mistercap products in both North America and Europe, team and vision in the weeks to come. Mistercap products will be intended to help promote a healthy lifestyle. No Mistercap and/or Red Light Holland 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 LLC or Wiz Khalifa have been evaluated by the United States 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 LLC 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.

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 Europe, 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.