Mr. Todd Shapiro reports

RED LIGHT HOLLAND COMMENCES EXPERIMENTAL RESEARCH ON PSILOCYBIN TRUFFLES TO DEVELOP PROCESS FOR COMMERCIAL MANUFACTURING OF NATURAL-SOURCE ACTIVE PHARMACEUTICAL INGREDIENT

Red Light Holland Corp. has initiated an experimental research project to develop a process for the commercial manufacture of natural-source active pharmaceutical ingredient (API) derived from the company's psilocybin truffles.

"While we have seen excellent movement in a number of emerging markets, it has become clear that there is also a demand for a range of medical products based off of psilocybin mushrooms and truffles, and optionality is key in our two-pronged approach," said Todd Shapiro, chief executive officer and director of Red Light Holland. "With the development of a process to manufacture natural-source psilocybin API, we believe that Red Light Holland will be able to produce high-margin psilocybin medical products -- and gain valuable intellectual property."

The project will be managed by researchers from Pharmala Biotech Holdings Inc., and should yield a process for the extraction and subsequent purification of psilocybin into a form such that it can be formulated into medical products for use in a variety of markets. Psilocybin truffles imported under Red Light Holland's previously announced five-kilogram (kg) import through CCrest Labs will serve as starting material for the process development. The process should be specific and standardized such that it can be transferred into a variety of contract manufacturing facilities, enabling full-scale GMP (good manufacturing practice) manufacturing.

"As we move towards regulated therapeutic psilocybin markets in countries like Australia, we continue to believe that a high-quality natural source of API is of significant value," said Nick Kadysh, chief executive officer, Pharmala Biotech. "We are happy to work on behalf of Red Light Holland to execute this process development work."

About Pharmala Biotech Holdings Inc.

Pharmala is a biotechnology company focused on the research, development and manufacturing of MDXX class molecules, including MDMA (3,4-methylenedioxymethamphetamine). Pharmala was founded with a dual focus: alleviating the global backlog of generic, clinical-grade MDMA to enable clinical trials as well as commercial sales in selected jurisdictions, and to develop novel drugs in the same class. Pharmala is the only company currently provisioning clinical-grade MDMA for patient treatments outside of clinical trials. Pharmala's research and development unit has completed proof-of-concept research into several intellectual property families, including ALA-002, its lead drug candidate. Pharmala is a regulatory-first organization, formed under the principle that true success in the psychedelics industry will only be achieved through excellent relationships with regulators.

About Red Light Holland Corp.

The company 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.

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