Red Light Holland Reports First Quarter 2026 Results

Toronto, Ontario--(Newsfile Corp. - August 28, 2025) - Red Light Holland Corp. (CSE: TRIP) (FSE: 4YX) (OTCQB: TRUFF) ("Red Light Holland" or the "Company"), an Ontario-based corporation engaged in the production, growth, and sale of functional mushrooms, 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, announces its financial and operational results for the three months ended June 30, 2025, the highlights of which are included in this news release. All figures are reported in Canadian dollars. The Company's full set of the unaudited condensed interim consolidated financial statements and accompanying management's discussion and analysis can be accessed by visiting the Company's website at www.RedLight.co and its profile page on SEDAR+ at www.sedarplus.ca.

Key Financial Highlights for Q1 2026:

• Total Cash Balance: $11.454M ($12.838M as at March 31, 2025)
• Revenues: $1.301M vs $1.559M in Q1 2025
• Gross Profit: $0.447M vs $0.625M in Q1 2025
• Adjusted EBITDA Loss: $0.577M versus $0.562M in Q1 2025
• Total Assets: $20.141 ($21.221M as at March 31, 2025)
• Excess Cash: Invested in principle-protected high-interest savings vehicles and a commitment to $2M in Bitcoin and Bitcoin-related assets
• Higher use of cash in Q1 2026 as the Company paid off a debenture in April for $653K and purchased Bitcoin ETF in June for $210K

Company Updates:

• Albertsons Breakthrough: Entry into the U.S. retail market via Albertsons (under the Safeway banner) with Happy Caps Mushroom Home Grow Kits.
• Happy Caps Innovation: Health Canada-approved Functional Mushroom Gummies (NPN #80137179) launched and now available on Amazon.
• Pilot Program: Launched in London, ON Real Canadian Superstore ("RCSS") for our FUNctional mushroom gummies, and received indication that further expansion for distribution points in RCSS is a likely possibility.
• SR Wholesale Performance: Remained cash-positive in Q1 2026, with steady sales growth driven by expanded product offerings and continued distribution of iMicrodose and Maka truffles across Dutch SmartShops.

Global Operations & R&D:

• Irvine Labs Partnership: In August 2025, Irvine Labs completed the initial potency testing which confirm that our naturally derived Psilocybin truffles are compatible with the manufacturing processes being developed for potential medical grade applications
• ASU Partnership: Collaboration with Arizona State University on the Psychedelic Genome Project led by Dr. Candace Lewis to better understand the genetic factors influencing psilocybin response.
• Scientific Advisory Appointment: Dr. Robin Carhart-Harris, a globally recognized leader in psychedelic neuroscience, joined as Scientific Advisor to guide R&D, policy strategy, and potential regulatory pathways.

Bitcoin Strategy:

• Bitcoin Strategy: Red Light Holland announced a Bitcoin strategy allocating up to $2 million in Bitcoin-related assets, led by Cryptocurrency Advisor Scott Melker. This initiative reflects our alignment with decentralized systems that echo psilocybin's ethos of empowerment, sovereignty, and innovation. After experiencing institutional debanking in Canada, the Company is exploring Bitcoin as a financial infrastructure alternative for operational flexibility.

M&A Activity:

• The Company presented a non-binding offer to a potential acquisition target and is currently in ongoing discussions. We remain focused on exploring M&A opportunities, aiming to acquire growing CPG companies, who have strong brand recognition plus significant (and potential accretive) revenue, aimed at creating synergies to our existing business.

Challenges & Turnarounds:

• AEM New Brunswick: Recorded rebounded sales in Q1 2026.
• AEM Ontario (Peterborough): The Company is in discussions with an interested party about selling the land and building, with the intention to potentially consolidate capital instead.

Looking Ahead:

Red Light Holland remains optimistic about the future. With a diversified foundation including a recently announced Bitcoin balance sheet strategy, bold innovation in psilocybin research, proven business models and constant revaluations with a continued focus on fiscal responsibility, and an all-around experienced and hardworking team of management and world-class advisors, we believe we are well-positioned to lead the next wave of responsible growth in both the psychedelic and functional mushroom sectors.

About Red Light Holland:
Red Light Holland 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.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current conditions but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Often, but not always, forward-looking statements and information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its respective subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Examples of such information include statements with respect to: the Company's unwavering commitment to sustainable growth, financial prudence, and long-term strategy; the Company growing globally; the Company's commitment to mental health innovation, science, and future regulatory compliance; the Company's focus on improving the bottom line and strengthening the foundation for long-term profitability while awaiting hopeful regulatory changes and modern medicinal advancements in psychedelics; the Company creating and supporting themes of deregulation, decentralization, and personal sovereignty in both financial and wellness domains; the Company entering into the Australia / New Zealand medical markets; the Company's future investment in cryptocurrencies; rising sales at AEM New Brunswick; the Company selling AEM Ontario and consolidating its capital; the Company following through with a non-binding offer to a potential acquisition target and exploring M&A opportunities, the Company continuing its pilot project in RCSS into further stores; and the Company leading the next wave of responsible growth in both the psychedelic and functional mushroom sectors.

Forward-Looking information in this news release are based on certain assumptions and expected future events, namely: continued approval of the Company's activities by the relevant governmental and/or regulatory authorities; the Company will maintain its prudent cash management; the Company will explore potential mergers and acquisitions; the Company will advance its research and development efforts; the Company will maintain its strategic commitment to growth while maintaining strong cash management; the Company will continue to focus on expanding brand recognition and overall retail distribution channels; the Company will continue to focus on financial stability and long-term profitability; the Company will continue to focus on advocacy for the legalization of, and adult access to, psilocybin; the Company will continue its unwavering commitment to sustainable growth, financial prudence, and long-term strategy; the Company will continue to grow globally; the Company will continue its commitment to mental health innovation, science, and future regulatory compliance; the Company will continue to focus on improving the bottom line and strengthen its foundation for long-term profitability; there will be positive regulatory changes and modern medicinal advancements in psychedelics; the Company will create and support themes of deregulation, decentralization, and personal sovereignty in both financial and wellness domains; the Company will enter into the Australia / New Zealand medical markets; the Company will invest in cryptocurrencies; there will be rising sales at AEM New Brunswick; the Company will sell AEM Ontario and consolidate its capital; the Company following through with a non-binding offer to a potential acquisition target and exploring M&A opportunities, the Company continuing its pilot project with RCSS into further stores; and the Company will lead the next wave of responsible growth in both the psychedelic and functional mushroom sectors.

Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, namely: the Company's inability to obtain continued approval of the Company's activities by the relevant governmental and/or regulatory authorities; the Company's inability to continue advocating for the legalization of, and adult access to, psilocybin; the Company's inability to increase its brand recognition and/or overall retail distribution channels; the Company's inability to maintain its prudent cash use; the Company inability to explore potential mergers and acquisitions; the Company's inability to maintain its strategic commitment to growth while maintaining strong cash management; the Company will be unable to advance its research and development efforts; the Company will be unable to focus on financial stability and/or long-term profitability; the Company will be unable to focus on advocacy for the legalization of, and/or adult access to, psilocybin; the Company's inability to continue its unwavering commitment to sustainable growth, financial prudence, and/or long-term strategy; the Company's inability to grow globally; the Company's inability to continue its commitment to mental health innovation, science, and/or future regulatory compliance; the Company inability to focus on improving the bottom line and/or strengthen its foundation for long-term profitability; there will be negative regulatory changes and/or no modern medicinal advancements in psychedelics; the Company will be unable to create and/or support themes of deregulation, decentralization, and/or personal sovereignty in both financial and/or wellness domains; the Company will be unable to enter into the Australia / New Zealand medical markets; the Company will not invest in cryptocurrencies; there will be decreasing or stagnant sales at AEM New Brunswick; the Company will be unable to sell AEM Ontario and/or consolidate its capital; and the Company will be unable to lead the next wave of responsible growth in either the psychedelic and/or functional mushroom sectors.

Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/264261