Red Light Holland Corp. 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, whereby the Company had acquired 100 acres of farmland located in the Township of Cavan-Monaghan in Peterborough, Ontario for $1.85 million paid in cash. With great enthusiasm, the Company proudly presents an initial draft 3D rendering of the future Peterborough Farm.

The Company continues to work with Acadian Exotic Mushrooms Ltd., an operating gourmet mushroom production facility in New Brunswick, Ontario, which is majority owned by Red Light, and co-owned by the leading Canadian mushroom farming groups and individuals: Holburne Mushroom Farm and Mike and Fernando Medeiros of Carleton Mushroom Farms, to develop two mushroom production facilities with the aggregate footprint of 65,000 sq. ft. to be located on the Peterborough Farm.

This development will enable the Company to dramatically expand its farm division, by adding the Peterborough Farm to its existing portfolio of farms: Happy Caps Gourmet Mushroom Farm in Halifax, Nova Scotia, AEM Farms in New Brunswick, Ontario, and MiniChamp BV Home Grow Kit Farm and Red Light's Truffle Farm - both located in Horst, The Netherlands. The Company has had further productive conversations with the Township and is currently working with an expert mushroom farm design firm in The Netherlands and experienced Canadian engineers to finish the site plans. With the design phase nearing completion, the Company intends to submit the finalized engineered stamped plans within the next 8 weeks to the Township in order to begin the approval process as the Company seeks to obtain permits for the construction of the Mushroom Facilities.

Once completed, the Peterborough Farm is expected to immediately generate revenues of approximately $80,000 per week. As it ramps up to its full production capacity, the Company expects a revenue run rate of approximately $16.0 to $17.0 million per annum with strong profit margins and cash flows from operations. The Mushroom Facilities should take approximately 18 months to construct following the submission of the final plans to the Township.

The cost to build the Mushroom Facilities is estimated to be around $8.0 million. The above referenced sales and construction information represents previous MD&A disclosures on the topics. The sales figures were developed using both production and market demand information provided by in-house mushroom experts.