Mr. Todd Shapiro reports

RED LIGHT HOLLAND REPORTS 2024 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 years ended March 31, 2024, and 2023.

• Cash balance of $14.1-million as at March 31, 2024;
• Annual revenue of $4.7-million (versus 2023: $3.9-million, an increase of 20.3 per cent);
• Gross profit of 42.5 per cent (vs. 2023: 43.1 per cent, an increase in gross profit dollars of 18.8 per cent);
• Cash burn of $3.3-million (vs. 2023: $3.8-million, a decrease of 11.7 per cent);
• Property, plant and equipment value of $5.3-million;
• Total assets of $24.1-million.

"The entire team at Red Light Holland is proud of our 2024 audited year end results, as we continue to grow our revenues. We remain strategically focused on the long game, while other companies in our space continue to burn cash at a frightening rate, have small runways or march towards the eve of insolvency as the overall sector, to be frank, has been unimpressive," said Todd Shapiro, Red Light Holland chief executive officer and director. "In our opinion, the harsh reality is that governments are uncertain, even despite recent groundbreaking emerging psilocybin developments, on their direct path forward -- hence they are slower to introduce this much needed therapeutic approach to patients in need. Red Light Holland had anticipated this slower path, which is why we are pleased with our pivot a few years ago creating our 'everything mushroom' vision. Our core focus remains on profitability while we continue to advocate for the 'right to try' and push for adult access to psilocybin for those in need -- and our hard work, goals and strategy continue to show positive momentum."

Red Light Holland chief executive officer Todd Shapiro added these key highlights:

Financial growth:

• The company grew revenues by over 20 per cent last year, not including its recent impressive Costco Canada partnership.

Strategic focus:

• The company continues to focus on its path to profitability and its road to increase near-term and long-term revenues through multiple streams as an "everything mushroom company.

Diversified portfolio and increased distribution:

• Since going public with zero sales in May, 2020, the company has now achieved over $11.0-million in sales (as at March 31, 2024) via:
  • The Horst facility, the company's wholly owned farm in the Netherlands successfully growing and supplying magic truffles through three brands across 200-plus SmartShops.
  • SR Wholesale, the company's wholly owned subsidiary, which is one of the leading distributors to SmartShops in the Netherlands.
  • MiniChamp BV, the company's wholly owned subsidiary, with its sales expansion of home grow mushroom kits across the European Union, including a large Minichamp kit order now in Germany.
  • AEM Farms, where the company owns a majority stake in a shiitake mushroom farm in New Brunswick, Canada, supplying major retailers including Farm Boy, Costco Canada, Loblaws and Whole Foods through distributors.
  • Happy Caps, another wholly owned company, supplying mushroom home grow kits in over 330 total locations in Canada, including Costco Canada, Longo's Markets, Canadian Tire and Real Canadian Superstores.
  • Mush Room and more, wellness shops in Oss and Utrecht, The Netherlands. The company's renovations and rebrand of its retail stores in Oss and Utrecht were completed. The company continues to increase the number of products sold through these locations to align the brand to the holistic view of mind and body health while executing on customer experience initiatives.

Research and development:

• Published reports on psilocybin's benefits;
• Achieved certifications for psilocybin microdosing capsules;
• Successfully tested and extracted psilocybin truffles;
• The company's innovative iMicroapp, that collects vital real-world data from consensual users of psilocybin, aimed for advocacy and learned information to share with governments, peers and those involved in the mission for the "right to try" responsibly.

Partnerships and achievements:

• The company has partnered with CCrest Laboratories (with Health Canada approved psilocybin import permits) and PharmAla for psilocybin testing and extraction.
• The company has collaborated with Prof. David Nutt's drug science for microdosing research which harnessed real-world data from 929 individuals engaging with psilocybin in the Netherlands' regulated market, from Red Light Holland's microdosing app.
• The company also has an incredibly gifted and talented advisory board providing management with tremendous knowledge and support.

Government access:

• Government uncertainty in emerging psilocybin markets has slowed therapeutic introductions, which, again, is why the company is confident in its overall strategy as an everything mushroom company focused on increasing both near-term and long-term revenues, as the company awaits hopeful changes in legalities for adult access to psilocybin.

Future plans:

• AEM Ontario: Building an 80,000-square-feet farm in Peterborough, Ont., with continued work under way.
• Increasing sales from both of the company's wholesale divisions in Europe and North America.
• Increasing points of sales for all of the company's brands in Europe and North America.
• Exploring potential mergers and acquisitions, at a time where many established CPG (consumer-packaged goods) companies are running out of cash and are looking for support from companies, such as Red Light Holland, who are well capitalized.
• Advancing the company's R&D from its recent accomplishments, which highlight the capabilities of Red Light Holland and its partnerships, setting a robust foundation for subsequent phases with the goal of commercialization of therapeutic/medical psilocybin sales in emerging markets, while the company continues to advocate for broader legal psilocybin access.

Challenges acknowledged:

• While the company has made mistakes along the way, the company continues to learn and grow from them. Pivots, challenges and changes in all businesses and all sectors happen. Management must adapt to market trends and tougher economic times and be flexible to adopt new strategies and plans. I love the phrase fail forward. The company acknowledges delayed timelines and unsatisfactory partnerships -- but overall the company remains confident in its strategic path. The company is proud of its accomplishments. The company's continued efforts remain focused on creating long-term value for its loyal shareholders.

Financial strength:

• As of March 31, 2024:
  • $14.1-million in cash;
  • $24.1-million in total assets.
• Investing strategically in Canadian Guaranteed Investment Certificates to earn interest while retaining principal protection.

The audited financial statements and management's discussion and analysis for the year ended March 31, 2024, 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 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.