Redfund Capital Corp. (CSE:LOAN, Frankfurt:O3X4, OTCQB:PNNRF) (Redfund or the “Company”) is pleased to announce CannaForum BV “CANNA” our newest portfolio client, has been notified it remains in the last 40 cannabis applications and that over 100 other submissions have been rejected to date by the Dutch government in their Closed Cannabis Supply Chain Experiment.
Redfund previously announced on July 29 that the Company had signed a letter of intent with CannaForum BV a company registered in the Netherlands, that had submitted an application for a cannabis cultivation license to the Dutch government in a new experiment program for the legal cultivation of cannabis in the Netherlands. Redfund and CannaForum have begun discussing a definitive agreement and terms will be disclosed when appropriate. 10 Cannabis producers will be awarded licenses in early 2021 and will be the only companies allowed to legally operate from 2021 to at least 2025 in the Netherlands. The Dutch experiment includes 79 retailers / `Coffeeshops’ within 10 selected cities. All retailers in the experiment are required to purchase all their products from the 10 selected producers. According to the application submitted to the Netherlands government, a minimum of 65.000 kg is required to be produced by 10 producers on an annual basis to supply all 79 retailers. For each producer: 6.500 kg at current Dutch wholesale prices translates to approx. 12-20m revenues annually.