- Global legal marijuana market set for CAGR of 34.6 percent over next seven years
- Redfund plans internationally diversified portfolio
- Focused on revenue-producing MMJ, hemp and CBD companies
Since a rising tide lifts all boats, the surge in the legal cannabis industry is set to boost the prospects of many an enterprise in the cannabidiol (CBD) space. The global legal marijuana market is projected to enjoy a healthy CAGR of 34.6 percent over the next seven years, reaching $146.4 billion by 2025, according to Grand View Research (http://ibn.fm/AjZh8). However, just as a boat must do more than simply stay afloat, CBD businesses must be set on a profitable course, and a lack of capital can make that impossible. Nevertheless, revenue-producing CBD operators that can scale successfully could turn to Redfund Capital Corp. (CSE: LOAN) (OTC: PNNRF) (Frankfurt: O3X4) for counsel and capital. Redfund is a merchant bank that provides debt and equity solutions to companies in the mid to late stages of development. Currently, Redfund is focused on medical marijuana (MMJ), hemp and CBD and health care-related companies.
The tide is indeed rising. After the recent midterm elections, two more U.S. states – Missouri and Utah – are on their way to legalizing medical marijuana, bringing the number of U.S. states to have done so to 33. Other U.S. jurisdictions – Washington DC, Guam, Puerto Rico and the Northern Mariana Islands – have done so, as well. Moreover, now that voters in Michigan have approved recreational use of marijuana, adult use marijuana is now legal in 10 states, as well as the District of Columbia (http://ibn.fm/uy9GY). Internationally, the picture is no different. From November 1, 2018, doctors in England, Wales and Scotland have been able to not just recommend but also prescribe cannabis. To date, 31 countries have legalized marijuana for medicinal use. This progressive wave will, undoubtedly, buoy Redfund’s clients operating in the North American and European CBD sectors.
Recently, Redfund published details of its involvement with one such client, Mary’s Wellness Ltd., a marketer and distributor of cannabis-infused teas (http://ibn.fm/UPeS0). The merchant bank is in active discussions with partners in the UK, Switzerland, Colombia and Portugal to help launch Mary’s products. Redfund aspirations for the beverage manufacturer are ambitious. It is hoping to make the brand as widely recognized as Starbucks (NASDAQ: SBUX). A first step to that is an IPO for Mary’s Wellness early in 2019.
Redfund is also funding Winterlife Inc. as the latter launches a new product line (http://ibn.fm/TWSOx). The Winterlife CBD product line is 100 percent organic, vegan and gluten free. The SKUs will include Winterlife’s famous gourmet cookies, tinctures and capsules, which are now manufactured in Washington State. Winterlife products are currently available in over 600 dispensaries throughout the state. The company also has processing agreements in several other U.S. states. Its revenues are close to C$3 million per annum.
In October 2018, Redfund announced the opening of a subsidiary, First Euro Cannabis, which became the first incubator and accelerator in Europe that finances medical cannabis, CBD and hemp companies (http://ibn.fm/OVLtM). The subsidiary will play an important part in the distribution of Winterlife CBD products across Europe.
Put together by bankers and entrepreneurs with years of experience in business, consulting, capital markets, corporate finance and health care services, Redfund Capital provides a debt financing facility to help companies build their valuations and get to the next level in their financing cycles without prematurely giving away equity. Diversification is an essential portfolio strategy. The company has interests in Canada, Europe and the U.S. As acceptance of marijuana’s therapeutic value grows, there’s no doubt that Redfund is taking this cannabis tide in the affairs of men, at the flood. That approach just may lead on to fortune.
For more information, visit the company’s website at www.RedfundCapital.com
