Redfund CEO Meris Kott discusses Wahupta, a client with a unique position in the international hemp and CBD markets.
Redfund Capital (CSE:LOAN,OTCQB:PNNRF,FWB:O3X4) CEO Meris Kott believes that the second half of 2019 will bring out the best in Redfund as new opportunities open up in the Canadian and international cannabis markets.
Leading the way in new opportunities is Redfund’s client, Wahupta Ventures, which recently signed its first American client. According to Kott, the deal speaks to the international footprint that Wahupta is building. Redfund is also offering advisory services to Wahupta as it prepares to list publicly. Being one of the only hemp-focused cultivators in Canada has positioned the company for success in the recently legalized cannabidiol (CBD) market. Wahupta is currently in discussions with key licensed producers in Canada to form toll processing and joint venture agreements.
In the interview below, Kott also touches on the progress Redfund has made since its inception in 2018. The company currently has a total of 13 clients and is in discussions with five potential clients. Kott believes that the turmoil experienced in the cannabis industry in 2018 will bring additional opportunities in the latter half of 2019, as many of the company’s competitors are experiencing difficulties.
Below is a transcript of our interview with Redfund CEO Meris Kott. It has been edited for clarity and brevity.
Investing News Network: Can you tell us about the recent progress made by Redfund and its clients?
Redfund CEO Meris Kott: Last year, Redfund started as a funding facility that provides promissory notes and debt financing to medical cannabis, CBD and hemp companies.
We’ve changed direction a bit and have become an advisory service as well. Many of our clients need help getting to the next stage in their process rather than funding. We’ve grown to incorporate other areas into our model. We are going after international players because we believe we have the experienced team globally to build their cannabis brands.
INN: What does the signing of Wahupta’s first client say about its operations?
MK: Wahupta owns the extraction company Curran Technologies, which just signed its first client. It speaks to the fact that an American client signed a Canadian extraction company. Wahupta’s Curran division is focused on hemp extraction, which is unusual in Canada as most have been focused on cannabis and THC.
The deal also speaks to the international footprint that Wahupta’s creating for itself.
The US is one of the most progressive hemp markets right now, and it has been steadily growing since the Farm Bill was passed last year. I think they chose the international footprint they’re creating for themselves before CBD is legal in Canada.
INN: What will the next steps for Wahupta be with Redfund’s leadership?
MK: We’re helping Wahupta prepare its listing statements for a public exchange. Of course, I can’t reveal which exchange until the listing is saved and filed, but I will say it’s my favorite exchange. From our perspective, Wahupta is the only hemp player we know that has focused all of its crop cultivation in Canada. Wahupta took a chance to be a trailblazer and planted one of the largest Canadian hemp grows this year in anticipation of the CBD industry taking off in Canada this fall.
We are betting on Wahupta! They have close to 8,000 acres of hemp planted and expect to harvest in late September. They have over 2 million tonnes of biomass already harvested, and they’re working on forming joint ventures and toll processing agreements with key licensed producers in Canada. It’s exciting for Redfund to work with them and lead them in different directions so they can become the leading Canadian hemp company.
INN: What is Redfund’s focus during the latter half of 2019?
MK: 2018 was a tough year for the entire industry as some first movers and leaders in the sector are no longer around, and others are falling by the wayside. I always said it was survival of the fittest and perseverance, but for Redfund, I think the opportunities have become greater. Personally, as a woman in cannabis, doors have been opened for me when I least expected them to. The deals that we’ve signed are beyond what I thought they would be.
As for the projects, I think we’re going to be the dark horse that comes from behind. Some of our peers in the cannabis debt facility space are also pivoting and we are discussing opportunities to work together on multiple deals. We now have numerous projects coming our way and, honestly, we don’t have the funding to help all of them. However, I think that the second half of 2019 will bring out the best parts of our company.
This interview is sponsored by Redfund Capital (CSE:LOAN,OTCQB:PNNRF,FWB:O3X4). This interview provides information which was sourced by the Investing News Network (INN) and approved by Redfund Capital in order to help investors learn more about the company. Redfund Capital is a client of INN. The company’s campaign fees pay for INN to create and update this interview.
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