Red Light Holland Corp (TRIP)

[oatsuzn]

Pharmadrug Completes Strategic Mutual Investment with Red Light Holland Corp.

https://money.tmx.com/en/quote/BUZZ:CNX/news/6232590938629960/Pharmadrug_Inc_Completes_Strategic_Mutual_Investment_with_Red_Light_Holland_Corp

Toronto, Ontario--(Newsfile Corp. - July 16, 2020) - PharmaDrug Inc. (CSE: BUZZ) (OTC: LMLLF) ("PharmaDrug" or the "Company") is pleased to announce that it has completed the share exchange transasction with Red Light Holland Corp. ("RLH") (CSE: TRIP) (FSE: 4YX), an Ontario-based corporation positioning itself to engage in the production, growth and sale of a premium brand of magic truffles to the legal, recreational market within the Netherlands, announced in the Company's July 16, 2020 press release.

Under the terms of the agreement, the Company issued 9,333,333 units to RLH (the "PharmaDrug Units") at a price of $0.075 per PharmaDrug Unit, and RLH issue 4,242,424 units (the "RLH Units") to the Company. Each PharmaDrug Unit consists of (i) one common share of PharmaDrug, (ii) 0.9 of a PharmaDrug common share purchase warrant, with each whole warrant entitling the holder thereof to acquire one common share of the Company at a price of $0.13 until July 16, 2024, and (iii) 0.1 of a PharmaDrug common share purchase warrant, with each whole warrant entitling the holder thereof to acquire one common share of PharmaDrug at a price of $0.08 until July 16, 2024. In addition, RLH subscribed for $200,000 of units of the Company, at a price of $0.075 per unit, with each unit consisting of (i) one common share of PharmaDrug, and (ii) one PharmaDrug common share purchase warrant, with each warrant entitling the holder thereof to acquire one common share of PharmaDrug at a price of $0.08 until July 16, 2024.

Each RLH Unit consists of one common share in the capital of RLH (a "RLH Share") and one RLH Share purchase warrant (a "RLH Warrant"). Each RLH Warrant entitles the holder to purchase one additional RLH Share at an exercise price of $0.26 at any time until July 16, 2024, subject to an accelerated expiry option. If, following the date that is four months and one day following the date hereof, the volume weighted average trading price of the RLH Shares on the Canadian Securities Exchange (the "CSE") for any 10 consecutive trading days equals or exceeds $0.50, RLH may, upon providing written notice to the holders of RLH Warrants, accelerate the expiry date of the RLH Warrants to the date that is 30 days following the date of such written notice.

The Company intends to use the proceeds of the $200,000 investment for working capital and general corporate purposes.

All securities of the Company issued pursuant to the above transaction are subject to a four-month hold period under applicable securities laws expiring four months and one day after the closing.

About PharmaDrug Inc.

PharmaDrug Inc. is building an international controlled substance and natural medicine company with a focus on Europe. The Company owns 80% of Pharmadrug GmbH, a German medical cannabis distributor, with a Schedule I European Union narcotics license allowing for the importation and distribution of medical cannabis to pharmacies in Germany and throughout the EU. The Company also owns 100% of Super Smart, an early-stage retail company focused on consolidating the fragmented Dutch smartshop market. Smartshops are retail establishments in The Netherlands that specialize in the sale of psychoactive substances including psychedelic truffles.

For further information, please contact:

Daniel Cohen, Chairman and CEO
[e-mail]
[phone]