Redfund Capital Corp (CSE: LOAN) (Frankfurt: O3X4) (OTC: PNNRF) (Redfund or the “Company”) is pleased to announce that it has completed its first investment following its recent equity financing in Biolog, Inc. a Silicon Valley and Los Angeles California based cannabis infusion technology company.
Biolog, Inc. is in the fast growing market for cannabidiol (CBD) edibles and beverages. The funds will be utilized to launch a series of patented products that will allow both ordinary consumers and culinary professionals to easily and accurately infuse virtually any food or beverage with cannabinoids. The Biolog products are powered by Lexaria Bioscience Corporation’s (CSE:LXX) (OTCQX: LXRP) DehydraTECHTM technology, under an exclusive license agreement announced earlier this year by Lexaria. The products are unique to the industry in that precise dosing can easily be accomplished to produce edibles and beverages that offer improvements in bioavailability of up to 500%, while also reducing onset times for psychoactive effects to as fast as 15 to 20 minutes. Additionally, due to a taste masking technique, foods and beverages infused with Biolog products taste like the food or beverage, not cannabis.
Redfund and Biolog signed a 2 year term convertible secured promissory note on August 21, 2018 of $800,000 at an annual interest rate of 14%, of which the first tranche of $200,000 has already been tendered to Biolog. The Note may be converted at Redfund’s discretion at any time during the term and the Company has a right of first refusal to provide financing to Biolog upon the same business terms as are being offered to Biolog by any other funders. Biolog afforded Redfund stock warrants of its common stock equivalent to twenty percent (20%) of the amount of the Note based upon their current valuation as of the effective date which is stipulated to be US$10,000,000.00
Additional rounds of funding from the Company will further enhance Biolog’s product portfolio, product line expansion and distribution.
Bruce Bauer, CEO of Biolog, commented, “Our analysis in selecting a financing partner extended well beyond simple access to capital. We rated industry expertise and the ability to assist us in developing strategic partnerships as our two main criteria. Redfund Capital was the clear choice for Biolog for these reasons. All of us at Biolog are very pleased to have Redfund as our partner in growth.”
“We are investing based on the exceptionally strong intellectual property portfolio owned by the company. As the medical cannabis and CBD business sectors mature, we believe differentiating factors and barriers to entry, such as the trade secrets and patents will become ever more important. Biolog brings to the market an already exceptional IP position, which we believe will be further strengthened over the coming year,” stated Meris Kott, CEO.
About Redfund Capital
Redfund intends to provide debt and equity funding in the mid-to-late stages of a target company’s development, or in technologies that are developed and validated by revenues. The present focus of the merchant bank is on medical cannabis, hemp and CBD-related, healthcare-related target companies.
For further information please visit www.redfundcapital.com
For more information on Redfund Capital contact
Meris Kott CEO 604.484.8989
About Biolog, Inc.
Biolog, Inc., located in the San Francisco Bay and Los Angeles areas, has been organized to capitalize on the fast growing market for cannabidiol (CBD) edibles and beverages. Biolog products solve many of the industry’s most pressing issues concerning cannabis edibles and beverages by offering precise dosing, micro-dosing, fast onset times, high bioavailability, taste masking and ease of use.
For additional information on Biolog, Inc., please contact Bruce Bauer at 650-520-8403 or at email@example.com
Further information about the Company is available on www.SEDAR.com under the Company’s profile.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. Certain statements contained in this release may constitute “forward–looking statements” or “forward-looking information” (collectively “forward-looking information”) as those terms are used in the Private Securities Litigation Reform Act of 1995 and similar Canadian laws. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated”, “anticipates” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the Company, the Property, financing and certain corporate changes. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.