- Redfund Capital is focusing the power of its equity financing and debt financing business incubation model toward flourishing cannabis industry startups
- The company is labeling its recent investment in the international Cannabis Mercantile Exchange (“Cannamerx”) auction platform as “one of our most strategic growth alliances”
- Cannamerx is gaining a growing clientele in the hemp and CBD industries, noting recently that it had clients listing 1.5 metric tons of hemp biomass for auction
- The global hemp market is forecast to reach $5.7 billion in revenues by 2020
Enterprising Canadian finance firm Redfund Capital Corp. (CSE: LOAN) (OTC: PNNRF) (Frankfurt: O3X4) is strengthening its business incubation model through equity financing and debt financing in the emerging cannabis industries, announcing recently that it will partner with the Cannabis Mercantile Exchange (“Cannamerx”) as Cannamerx rolls out the first international global hemp and cannabidiol (CBD) auction platform.
Redfund’s focus on accelerating revenue-producing companies by helping them fund their efforts to get to the next level without giving away equity prematurely has proven a natural fit for rising businesses in the cannabis space as cannabis products gain new social and regulatory acceptance worldwide.
Redfund Capital extended funds to three cannabis companies during the year’s first quarter — RxMM Health, Mary’s Wellness Ltd. and Winterlife Inc. — and it has established a new investment in Wahupta Ventures Inc. (http://cnw.fm/v0FKn), as well as recent funding for the Cannaki Beverage Company (http://cnw.fm/2inPE).
The Redfund-Cannamerx alliance announced on March 20 (http://cnw.fm/kzAM2) that it will provide the fully automated business-to-business (B2B) international auction platform with funding to establish its business model and build its global footprint of clientele for wholesale cannabis and cannabis products. On the heels of the announcement, the companies reported that they had listed 1.5 metric tons of hemp biomass for auction (http://cnw.fm/nt4Kw) on what the companies label “the first international global Hemp/CBD auction platform” and the Midas Letter labels a “B2B eBay” for the cannabis industry (http://cnw.fm/D0aJc).
Cannamerx is drawing hemp clients in Canada, the United States and Europe and is in the process of seeking CBD labs in the United States that it can work with for trade in that country.
“The hemp revolution has begun in North America,” Redfund CEO Meris Kott stated in a news release. “We are excited to help Cannamerx create a global path for many of these companies to trade Hemp/CBD internationally and become cash flow positive at a much quicker pace, decreasing their sales and marketing expenses and removing the ‘middleman’ thereby increasing net revenues. By next fall, we are hopeful CBD edibles will be federally approved and licensed in Canada with Cannamerx’s platform providing the raw materials to licensed LPs, who need hemp.”
Kott added, “Investing in a working cannabis auction platform in the sector is a game-changer. Cannamerx has the ability to connect European buyers with Canadian licensed sellers and South American licensed producers can with a click of a mouse list their products placing reserve prices to the rest of the world. There are many technology marketing plans to connect the world but Cannamerx have already established themselves as the go-to platform. Redfund recognizes that this is one of our most strategic growth alliances.”
Kott added (http://cnw.fm/k5W3Z) that the company’s strategy is to develop a portfolio of 20 companies with $75 million in loans to businesses that have “commonalities of revenues, brand awareness, and a keen interest to go global with their products.” This includes a drive to diversify Redfund’s investments in Canada and other countries, building an international footprint with established companies and introducing companies to Canada as a viable location for public listings.
Redfund cites a New Frontier Data market forecast predicting that the global hemp market will reach $5.7 billion in revenues by 2020, attributing the growth mostly to Chinese textiles, European industrials, Canadian foods and the hemp-derived CBD product market in the United States. Drug store outlets Walgreens Boots Alliance Inc. (NASDAQ: WBA) and CVS Health Corp. (NYSE: CVS) exemplify the market expectations, announcing during the final week of the quarter that they will begin offering CBD products in select states (http://cnw.fm/7Hpg1).
For more information, visit the company’s website at www.RedfundCapital.com
NOTE TO INVESTORS: The latest news and updates relating to PNNRF are available in the company’s newsroom at http://cnw.fm/PNNRF
CBDWire (CBDW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CBDNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CBDW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CBDW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CBDW brings its clients unparalleled visibility, recognition and brand awareness. CBDW is where news, content and information converge.
To receive instant SMS alerts, text CBDWire to 21000 (U.S. Mobile Phones Only)
For more information please visit https://www.cbdwire.com
Do you have a questions or are you interested in working with CBDW? Ask our Editor