Canadian psychedelics company Red Light Holland Corp. (CSE: TRIP) (OTCQB: TRUFF) cut its quarterly losses and grew sales as its mushroom and truffle business expanded across North America and Europe.
Revenue reached C$1.37 million for the quarter ending Sept. 30, up 39.1% from C$983,324 in the year-ago period, according to its latest financials. The Toronto-based company reduced its quarterly EBITDA loss by 64.3% to C$320,000.
“Nearly all our income-generating portfolio companies have seen growth, with every business over the last 12 months, except one (Mush Room & More), running in the black in terms of operating cash flow,” CEO Todd Shapiro said in a statement.
The company maintained C$12.79 million in cash at the end of September, versus C$13.3 million in June. Additional post-quarter inflows included an C$868,960 sales tax refund and C$468,668 Costco Canada payment in November.
Gross profit margins were 40.4% for the quarter, with wholesale product sales reaching C$575,554 and mushroom grow kit sales hitting C$582,184.
Recent developments include a new partnership with California-based Irvine Labs, an FDA-compliant and DEA-registered facility, for manufacturing microdosing psilocybin capsules. The company also completed the sale of its Oss retail store in the Netherlands for €25,000 in October.
“Despite broader market challenges, tourism being down in the Netherlands, high interest rates leading to less spending plus inflationary pressures, Red Light Holland has proven the resilience of our business model,” Shapiro said. “Our diversified portfolio, including our latest partnership with Costco Canada, positions us for continued success.”
The company’s Netherlands operations led revenue at C$785,162, followed by Canadian operations at C$582,412. Total sales have surpassed C$14 million “since the company went public in 2020,” according to the news release.
The company announced board member Ann Barnes’ departure and said it is “in discussion with some significant and very successful entrepreneurs interested in the position.”
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