Redfund Converts Loan into Equity Position in Mary’s Wellness Ltd.
VANCOUVER, British Columbia, March 13, 2019 (GLOBE NEWSWIRE) -- Redfund Capital Corp. (CSE: LOAN) (Frankfurt: O3X4) (OTC: PNNRF) (“Redfund” or the “Company”) as Lender is pleased to announce the Company’s intention to convert the first tranche of a convertible secured promissory note with Mary’s Wellness Ltd. (‘MWL”), as Borrower, into an equity position.
On October 15, 2018, Redfund entered into a CDN $1,000,000 promissory note with Mary’s Wellness Ltd. and were extended a first tranche of CDN $100,000. The Note may be converted in part or its entirety, at Redfund’s discretion at any time during the term. Additionally, the Company has the right of first refusal to provide financing to MWL upon the same business terms as offered to Mary’s Wellness.
Upon conversion of the first tranche of the promissory note, Redfund will own 5.55% of Mary’s Wellness Ltd. The balance of the promissory note is CDN $900,000. The convertible promissory note is secured by a general security agreement on assets of MWL and remains in place to secure additional tranches.
The Portfolio Client:
Mary’s Wellness Ltd. of Ontario, Canada was founded by Virginia Vidal in 2016. She was inspired to start the line of infused hot beverages to help manage her pain after the birth of her triplets in 2007. Since then, Mary’s brand has become synonymous as a symbol of wellness through cannabis. Virginia is a frequent industry speaker at both Canadian and global cannabis industry conferences and was also most recently a keynote speaker at the Tea and Herbal Association of Canada year end conference as well as Canada’s Dragons Den episode on cannabis. Mary’s current product line is 100% clean and organic, focused on medicinal cannabis and has a total of 20 varieties of convenient on-the-go brews with 12 packets in each box containing 10mg THC and 6mg CBD per serving. Flavours available are sleep & relax, bella coola, chamomile, chai, orange pekoe, lemon, peppermint, earl grey, plain green tea, green tea with ginger or ginseng, echinacea, berry berry, apple cider, hot chocolate, english toffee cappuccino, french vanilla cappuccino and coffee/java.
Mary’s Canadian only revenue projections once Canadian licensing approval is granted to edibles, are estimated at $5.5 million for the first year and a steady growth projection to $8.5 million the second year with ebita in year two to reach $5 million. Additionally, MWL global projections near $12 million of international sales year one including a CBD infused tea rollout strategy. (Mary’s Wellness Ltd.)
According to The Tea Association of the USA, tea globally is the 2nd most consumed beverage next to water. The Zion Market Report published in August 2018, stated that the global tea market was valued at around USD 49,456.52 million in 2017 and is expected to reach approximately USD 73,132.82 million by 2024, growing at a CAGR of around 4.5% between 2018 and 2024.
Redfund believes Mary’s Wellness is primed to be one of the first infused tea companies to reach the global marketplace. Virginia Vidal is a charismatic brand ambassador and a wonderful advocate for the medical cannabis industry in Canada. She is actively working to align MWL with a strong Canadian licensed producer with an extensive distribution network to facilitate a successful entrance into the Canadian licensed market
stated Meris Kott, CEO.
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 or firstname.lastname@example.org
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.