Red Light Holland Corp. (CSE: TRIP) announced March 10 it signed a definitive agreement to acquire Filament Health Corp. (OTC: FLHLF) through a statutory plan of arrangement. The transaction will give existing Red Light shareholders approximately 70% ownership of the combined company.

Under the agreement, each Filament share will be exchanged for Red Light shares based on an exchange ratio of approximately 0.0756, assuming a floor price of $0.02 per Red Light share. The deal could result in up to 182.4 million new Red Light shares being issued.

The acquisition combines Red Light's mushroom production capabilities with Filament's pharmaceutical manufacturing infrastructure. Filament operates a GMP-compliant facility in Vancouver and holds a Health Canada Level 8 Controlled Substances Dealer's License. The company has 76 issued patents covering natural psilocybin extraction and formulation across 15 patent families.

Filament's lead drug candidate, PEX010, currently supplies more than 70 clinical research sites globally for trials and compassionate use programs. The company has Health Canada and FDA-authorized clinical development programs.

Red Light CEO Todd Shapiro said the transaction accelerates the company's focus on regulated psychedelic medicine development. Filament CEO Benjamin Lightburn stated that Red Light's capital resources and operational infrastructure will help expand clinical development.

The transaction requires approval from Filament shareholders at a special meeting and is subject to regulatory and court approvals. Directors and significant shareholders representing approximately 65% of outstanding Filament shares have agreed to vote in favor of the deal. Completion is expected in the second quarter of 2026.

Following the transaction, Red Light's outstanding shares are expected to increase from 425.7 million to 608.2 million shares. One Filament nominee will join Red Light's board of directors.