Creso Pharma and Red Light Holland have entered into a definitive merger agreement to create The HighBrid Lab, a global psychedelics and cannabinoid company with an implied pro forma equity value of A$371 million.

Canopy Growth founder Bruce Linton is expected to join as non-executive chairman.

Bruce Linton: expected to join The HighBrid Lab board as non-executive chairman.

The combined company will trade on the Canadian Securities Exchange (CSE) under the ticker symbol TRIP and will focus on several key growth areas:

  • Expanding market and brand leadership in recreational psilocybin, supported by education, telecounselling and technology as new markets open.
  • Applied science and innovation supporting long-term opportunities in psychedelics with naturally occurring and pharmaceutical-grade drug discovery, aiming for approved product offerings through controlled lab environments via the pending acquisitions of Halucenex and Mera Life Sciences.
  • Once merged, The Highbrid Lab will be able to immediately start selling its animal and human CBD products within the US, which is expected to add considerable revenue.
  • Scaling its recreational cannabis offering in North America by focusing on increasing market share in Canada and taking advantage of the combined company’s CSE listing to progress the introduction of products into the US, as well as leveraging its expertise to execute US cannabis acquisitions in the near term.
  • Enhanced European distribution of Creso Pharma’s human and animal CBD products through SR Wholesale, Red Light Holland’s wholly owned Netherlands-based distribution company.
  • Introducing recreational product offerings under existing Red Light Holland brands including combined CBD and mushroom products and ready-to-drink products with mushrooms, CBD and THC. Adding adjacent iMicrodose product lines with ingredients including CBD, THC and functional mushrooms, where permitted to do so, and promoting responsible use via education and information.
  • The creation of Red Light Farms, increasing exposure to growing operations and adding to the combined company line-up including The Red Light Truffle Farm in the Netherlands, and Happy Caps Gourmet Mushroom Farm and Mernova Medical in Nova Scotia.
  • Increasing vertical integration strategies from growing, harvesting, packaging, branding and distribution to potential bricks and mortar stores for increased sales focused on higher margins.
  • Expanding e-commerce presence and online store initiatives to help boost future sales of CBD, THC, psilocybin, and functional mushroom products, where permissible.
  • Using biometric movement and scientific data and technology from Radix Motion to help find optimal dose and protocol for individuals, and working with regulatory agencies towards expanding the legal, responsible use of psilocybin, THC and CBD in emerging countries focused on stricter controls.
  • Continuing to grow one of the world’s most recognisable legal recreational psilocybin brands while crossing over into the cannabis sector with a focus on increasing creative and experiential marketing, brand development and influencer support.

Red Light Holland’s current chief executive officer, Todd Shapiro, will lead the combined company as CEO and director. The board will consist of three current directors of Red Light Holland, and three directors or nominees of Creso Pharma. Bruce Linton is expected to be the seventh member, as non-executive chairman.

Prior to launching Cannabiz, Martin was co-founder and CEO of Asia-Pac’s leading B2B media and marketing information brand Mumbrella, overseeing its sale to Diversified Communications in 2017. A journalist...

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