Red Light Holland (CSE: TRIP) is making moves to enter the clinical side of psilocybin, announcing this morning that it has entered into a consulting agreement with PharmAla Biotech (CSE: MDMA).

The arrangement will see Red Light utilize PharmAla’s clinical expertise to develop a clinical-grade psilocybin product that will enable the sale of psilocybin to clinical trials, special access program customers, and emerging markets. The psilocybin is expected to be extracted from Red Light’s own naturally occurring psilocybin truffles.

Red Light Holland currently sells a brand of psilocybin truffles within the legal recreational market in the Netherlands, while here in North America as well as elsewhere in Europe, it sells functional mushrooms and mushroom home grow kits.

“Our goal with this agreement is to generate all documentation necessary to achieve sales of our Psilocybin products to Clinical Trials, Special Access Program customers and/or other emerging markets. PharmAla will also help Red Light with Regulatory Support and we are confident their knowledge, expertise and leadership, will help increase the efficiency of Red Light Holland in achieving our goal of supplying our psilocybin capsules to those in need,” commented Todd Shapiro, CEO of Red Light Holland.

Potential also is said to exist for PharmAla to act as an exclusive sales agent for Red Light’s product, once it is cleared for sale.

The contract is said to be a period of one year, and to be paid in cash to PharmAla. It outlines that manufacturing experts from PharmAla will consult Red Light where necessary to establish GMP and regulatory documentation of a psilocybin capsule product developed by Red Light.

Red Light Holland last traded at $0.055 on the CSE.

Information for this briefing was found via Sedar and Red Light Holland. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.