Psychedelics company focused on production and sale of medical magical truffles Red Light Holland Corp. (CSE: TRIP) (OTCMKTS: TRUFF) has reached a mutual agreement with Creso Pharma Ltd. (ASX: CPH) (OTCQB: COPHF) to terminate a merger deal between the two companies.
Creso Pharma is a pharmaceutical company which specializes in developing cannabis and hemp-derived therapeutic, nutraceutical and lifestyle products for both animals and people.
The two companies had previously entered into a merger deal back in June this year. the companies says that following unfortunate events caused by the COVID-19 pandemic made it impossible to close the merger deal as it both parties concluded that the merger deal was no longer addressing interests of their respective shareholders.
“While we determined that a merger was no longer in the best interests of the two companies, we look forward to continuing to work closely with Adam Blumenthal and the rest of the Creso Pharma team as Red Light Holland has agreed to white-label Creso Pharma’s products and distribute them across our SR-Wholesale sales channels,” said the of Red Light Holland, Todd Shapiro.
The two companies have operations in different markets across the world, with the full face of the pandemic it became more and more evident that merging difficulties would cut short the synergies from the proposed merger deal.
“We respect Todd Shapiro and the entire team at Red Light Holland. Unfortunately, the geographic span of our respective businesses made a merger at this time impractical. We look forward to working with the Red Light Holland team through our new supply arrangement,” said the non-executive chairman of Creso Pharma, Adam Blumenthal.