Proactive Investors - Run By Investors For Investors

Redfund Capital provides $1M in financing to fund Cannaki Beverage

The two companies signed a two-year term convertible note this week for $1 million at a yearly interest rate of 14%.
puzzle pieces being put together
Redfund provides debt and equity funding to cannabis companies

Redfund Capital Corp (CSE:LOAN) (OTC:PNNRF), the cannabis-focused investment firm, told investors Thursday that it will provide financing of about US $1 million to Cannaki Beverage Inc to help fund the beverage company’s expansion.

Under the deal’s terms, Vancouver-based Redfund and Cannaki, which is headquartered in Las Vegas, Nevada, signed a 2-year convertible note this week for $1 million at a yearly interest rate of 14%.

READ: Redfund Capital to fund CBD water company Cannaki Beverage

In a statement, Redfund CEO Meris Kott said Redfund would help Cannaki strike a deal with a licensed Canadian cannabis producer and get its CBD beverages on shelves in Canada.

“Cannaki has a strong network in the US, Mexico and Europe and they are planning to expand their products’ reach to Asia and South America,” Kott said. “Welcoming a beverage company with a strong experienced team to the portfolio is very exciting for Redfund and our beverage division.”

READ: Redfund Capital launches new drinks products division, shares jump

Cannaki makes both still and carbonated beverages, as well as Nano CBD-infused flavored water and hemp water.

The two-year note can be converted at Redfund’s discretion at any time during the term. In exchange, Cannaki will grant Redfund warrants in its common stock, equal to 20% of the amount of the note.

Redfund provides debt and equity funding in the mid-to-late stages of a target cannabis company’s development. Its focus is on companies specializing in medical cannabis as well as healthcare and hemp and CBD-related products.

Redfund shares slipped by less than C$0.01 to hit at C$0.15 in Canadian trade on Thursday.

Contact Ellen Kelleher at [email protected]

-- This story is updated to reflect latest share price movement --

Join Proactive’s Crypto, Blockchain and Cannabis Telegram group here
View full LOAN profile View Profile

Redfund Capital Corp. Timeline

Related Articles

medical cannabis
October 31 2018
Redfund Capital continues to expand, with the launch of its subsidiary, First Euro Cannabis
Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use