- Red Light Holland (TRIP) and Creso Pharma have agreed to terminate their previously announced merger
- The companies made the decision based on COVID-19 travel restrictions to their multiple international operations
- The companies remains allies in their missions to bring cannabis and psychedelics to the world
- Red Light Holland is engaged in the production, growth and sale of magic truffles in the Netherlands
- Red Light Holland (TRIP) is down by 1.92 per cent trading at $0.255 per share
Red Light Holland (TRIP) and Creso Pharma have agreed to terminate their previously announced merger.
As a result of the COVID-19 pandemic, including significant travel restrictions, the companies have mutually concluded that the merger would no longer be in the best interests of their respective shareholders.
As the companies have significant operations in multiple countries, it became apparent that integration difficulties would limit the synergies from the proposed merger.
The companies remain allies in their mission to provide consumers with formerly illicit and functional substances, while strengthening their respective technology innovation and applied sciences divisions.
Todd Shapiro, CEO and Director of Red Light Holland, commented,
“While we determined that a merger was no longer in the best interests of the two companies, we look forward to continuing to work closely with Adam Blumenthal and the rest of the Creso Pharma team as Red Light Holland has agreed to white-label Creso Pharma’s products and distribute them across our SR-Wholesale sales channels. We are also continuing our search for other M&A opportunities as we are confident that our large cash balance puts us in a position of strength as potential progressive regulatory changes in the North American psychedelic and recreational cannabis sectors open up.”
Adam Blumenthal, Creso Pharma’s Non-Executive Chairman, added,
“We respect Todd Shapiro and the entire team at Red Light Holland. Unfortunately, the geographic span of our respective businesses made a merger at this time impractical. We look forward to working with the Red Light Holland team through our new supply arrangement.”
Creso Pharma develops cannabis and hemp-derived therapeutic, nutraceutical and lifestyle products for human and animal health.
Red Light Holland is engaged in the production, growth and sale of magic truffles in the Netherlands.
Red Light Holland (TRIP) is down by 1.92 per cent trading at $0.255 per share as of 9:31 am ET.