Redfund Capital Corp. (CSE:LOAN, Frankfurt:O3X4, OTC:PNNRF) (“Redfund” or the “Company”) is pleased to announce the Company has signed a letter of intent to acquire the Sunshine State Tea Company (“SSTC”), based in Florida, USA.
The letter of intent was signed on November 7th 2019 and will be effective for a period of sixty days or until a definitive agreement is signed between the parties. Redfund agrees to purchase 100% of SSTC which would include all formulas, rights, licenses, and concessions of SSTC obtained either before or after the effective date of the agreement. The Company will commit to at least CDN $500,000 of funding towards the project over a 3 year period, and raise additional funds to support SSTC products expansion. Redfund will agree to a purchase price with consideration in common shares, and the valuation and amount of shares shall be agreed upon between Redfund and the Sunshine State Tea Company after completion of the due diligence process and applicable regulatory approvals.
The US government legalized cannabinoid with a maximum of 0.3% of THC under the Farm Bill Act in December 2018. In the journal Neurotherapeutics in 2015 they derived that CBD, a nonpsychoactive compound, can actually help reduce anxiety in people with certain anxiety-related behavioral disorders, treating stress, anxiety, depression, and insomnia. Zenith Global guestimates that the US CBD-filled market will reach an estimated USD 1.4 billion by 2023, making it one of the fastest growing sectors in the overall industry.
“According to the Tea Association of America, tea is still the most consumed beverage in the US next to water. Upon the signing of a definitive agreement, Redfund will have a path to its first direct revenue stream in this globally evolving CBD-infused beverage market. We will continue to expand our reach into profitable revenue streams as the CBD market expands and is given more exposure promoting its health and wellness benefits.” said Meris Kott, CEO, “We are hoping to sign the definitive in the next few weeks and look forward to pushing this CBD tea brand forward,” added Meris Kott.
The Company further wishes to announce that it has granted 100,000 options to a Director. The options were issued pursuant to Redfund’s stock option plan and shall be exercisable into common shares for a period of five years being November 19, 2024 at a price of $0.17.
About Redfund Capital Corp.
Redfund partners with first mover, high growth companies, and provides them with access to capital, resources, and infrastructure. 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 Corp. contact
Meris Kott CEO 604.484.8989
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.