- Psychedilcs start-up, Red Light Holland (TRIP) has signed a mutual investment agreement with medical marijuana distributor PharmaDrug
- As part of the deal, Pharma will issue roughly 9.33 million units at C$0.075 cents each in exchange for around 4.24 million units in Red Light Holland at a price of 16.5 cents each
- Further, Red Light Holland will also purchase $200,000 worth of Pharmadrug units, also at 7.5 cents each
- The companies hope the mutual investment will bolster Red Light’s distribution channels, while providing Pharmadrug with a stake in the highly anticipated psychedelics market
- Red Light Holland (TRIP) is up 6.67 per cent and is trading at eight cents per share
Psychedelics start-up Red Light Holland (TRIP) has signed a mutual investment agreement with medical marijuana distributor PharmaDrug.
Pharmadrug, which lists on the CSE under the ticker code BUZZ, is authorised to import and distribute medical cannabis in Germany, as well as in other legal jurisdictions across the Eurozone.
Red Light Holland is currently developing its magic truffle products and hopes to benefit from the emerging medical and recreational psychedelics market.
As part of the deal, Pharmadrug will issue roughly 9.33 million units at C$0.075 each in exchange for around 4.24 million units in Red Light Holland at a price of 16.5 cents each.
The units contain common shares in the respective companies, as well as purchase warrants.
Further, Red Light Holland will purchase $200,000 worth of Pharadrug units, also at 7.5 cents each.
Pending the relevant approvals, the deal is expected to finalise on July 16.
Todd Shapiro, the CEO and Director of Red Light Holland, hopes the mutual investment will bolster Red Light’s distribution channels, while allowing Pharmadrug a stake in the highly anticipated psychedelic market.
“We are very pleased to be making a strategic investment into PharmaDrug. It only makes sense, as we would want to house our microdose products in their planned Smart Shops anyway.
“This expedites our partnership and now we’re pretty much guaranteed prime shelf space when they arrive, as both of our companies shine a light on the magic truffles market, in the Netherlands,” he said.
Todd went on to say that the two companies look forward to educating and eventually selling to the legal recreational market in the future.
Red Light Holland (TRIP) is up 6.67 per cent and is trading at eight cents per share at 1:50pm EDT.