The Ontario-based Red Light Holland Corp. (OTC:TRUFF), a company engaged in the production, growth & sale of premium psychedelic mushrooms to the Netherlands, has acquired 100 acres of farmland in Cavan-Monaghan, Peterborough, Ontario.
The transaction involved a total of $1.85 million. Through the deal, Red Light intends to work with Acadian Exotic Mushrooms Ltd., a mushroom production facility in New Brunswick majorly owned by Red Light and co-owned by Canadian mushroom producer Holburne Mushroom Farm and Mike & Fernando Medeiros, to convert the farm into two mushroom production facilities.
Mike and Fernando Medeiros run Carleton Mushroom Farms, a family business founded in 1984 which has tripled its growing capacity and steadily increased to 12 million pounds per year in the recent years, as stated by the company.
On the other hand, Holburne Mushroom Farm is also a local family-owned and operated business specialized in growing organic Shiitake and Oyster Mushrooms since 2005, increasing production to current yield of 1.3 million pounds per year.
Back to the sale, the deal will enable Red Light to expand the “Red Light Farms” division, which includes other three in Halifax (Nova Scotia), New Brunswick (Ontario), and Horst in The Netherlands. The company expects to start constructing the new site in the summer of 2022.
"We are extremely confident at Red Light because of how prudent we have been at running our psychedelic business, preserving cash at a time when most of our peers are straining to attract new capital. Red Light Holland on the other hand, has a significant cash position as we are clearly focused on increasing revenues while having a strategic and aligned plan to grow, in order to weather difficult markets and harder economic times," CEO and director of Red Light, Todd Shapiro said.
Mike Medeiros, co-owner of Carleton Mushroom Farms and President of Mushrooms Canada, added: "As planning continues and the permit process begins, we look forward to starting to build an advanced world class mushroom farm - so innovative and unique in fact, that only a few like it exist in the world."
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