Proactive Investors - Run By Investors For Investors
Why invest in RFND?
Redfund Capital Corp.: THE INVESTMENT CASE

‘Cannabis 2.0 is here’: Redfund Capital fires up to serve maturing cannabis market

Redfund is positioning itself to become a top-tier cannabis incubator and accelerator
‘Cannabis 2.0 is here’: Redfund Capital fires up to serve maturing cannabis market
Recreational pot sales in Canada are forecast to reach C$6bln by 2021, with the medical marijuana market estimated to reach C$1.3bln.

Booming. Evolving. Complicated. Three words that aptly describe the Canadian cannabis market.

Redfund Capital is positioning itself to jump headfirst into that market, and beyond.

The goal? To help solve one of the most significant obstacles faced by cannabis related businesses: accessing much-needed funds to succeed in a rapidly changing market.

The merchant bank, which will focus on the funding of companies operating in the cannabis sector, reversed into Parana Copper Corp, with the Canadian Stock Exchange (CSE) approving the company’s proposed change of business.

It provides debt and equity funding instruments to cannabis companies that require project-specific funding. It will also provide services to companies, to help them move towards being publicly listed.

“We have assembled an amazing team of banking industry experts positioned to build Redfund into a formidable merchant bank focused on the quickly maturing cannabis industry,” said chief executive officer, Meris Kott.

“Cannabis 2.0 is here. Our clients are innovative, responsive and already revenue generating.”

Equity-type financing the norm, debt-financing harder to find

The company – designed by bankers and entrepreneurs – provides both debt and equity financing to companies to allow them to expand, without prematurely releasing equity early in the growth cycle.

Kott says that many companies face challenges when it comes to the types of financing available to them.

"We have designed a company with a debt facility to provide bridge financing to companies who are starting to build their revenues and have low valuations, so they don't give up equity prematurely before they are ready."

Redfund's investments will be deployed to companies that have demonstrated success in the cannabis industry.

“Redfund is committed to project specific funding solutions providing a steady growth avenue for our shareholders,” added Kott.

Kott has spent 25 years building global bridges for public companies. Her experience is widespread, with a focus on targeting companies for investment and acquisition purposes for large multinational corporations. She has been involved in cannabis since Amendment 64 launched in Colorado in 2012.

Legalization on the horizon

Devising effective equity/debt financing strategies will undoubtedly be beneficial for backers and the Canadian cannabis industry overall.

Canada is on the doorstep of a multi-billion industry, and there is tremendous opportunity for debt/equity financiers to capitalize on early market participants seeking funding to help expand.

With legalization on the horizon (reportedly summer 2018), customers will soon be able to buy from government-approved dealers.

Recreational pot sales in Canada are forecast to reach C$6bln by 2021, with the medical marijuana market estimated to reach C$1.3bln.

Indeed, since the 2015 federal election in Canada, over C$1.8bln has been raised through equity offerings and the industry market cap now exceeds C$24bln.

Redfund signs agreement with RxMM

Medicinal cannabis cultivator RxMM Health Capital has signed on with Redfund as its first project. The British Columbia based company intends to list on the CSE and the US OTC exchange.

“We are excited to welcome RxMM as our first medical cannabis project. In the next few weeks we are expecting to fund their company and help fuel their expansion plans, and commence our trading on the CSE,” said Kott.

RxMM has signed a two-year financing facility with Redfund in the form of a promissory note. Interest will be compounded and paid monthly and Redfund has right of first refusal on financings to RxMM. Redfund has a right of first refusal on financings to RxMM.

Looking beyond borders

But Redfund is also looking beyond the Canadian border.

One such country is Colombia, where medicinal cannabis is legal, and has allowed the country to become a global player, while fostering an environment for the country to become a significant player in the international market.

READ: Redfund Capital signs up second client

Redfund recently signed up Biominerales Pharma Corp as a client. Biominerales has been granted global extraction and exportation licenses for medicinal cannabis oil.

Colombia has excellent year-round growing conditions and long history of a strong agriculture industry.

According to Kott, the Canadian public markets have embraced Colombia as one of the few South American countries with completed legislation and cannabis licenses granted.

"As we expand our clientele, our goal is to work with companies who have revenues and have shown they are leaders in the cannabis industry globally," said Kott. "BMP’s cannabis licenses, ability to export globally, near term revenues on their cultivation, make them an immediate leader in Colombia."

View full RFND profile View Profile

Redfund Capital Corp. Timeline

Related Articles

April 24 2018
Redfund is positioning itself to become a top-tier cannabis incubator and accelerator

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated.