Redfund Capital Corp (CSE:LOAN, OTC:PNNRF), the cannabis-focused financier, revealed plans to convert the first tranche of a convertible secured promissory note with cannabis tea client Mary’s Wellness Ltd into shares.
In October, 2018, Redfund and Mary’s signed a two-year term convertible secured promissory note for $1 million at an annual interest rate of 12.5%. Mary's was extended a first tranche of C$100,000.
Upon converting this first tranche, Redfund will own 5.55% of Mary’s Wellness Ltd. The balance of the note is therefore C$900,000.
Shares in Toronto jumped 14% to $0.245.
Mary’s Wellness Ltd was founded by Virginia Vidal two years ago as a response to the birth of her triplets in 2007.
The group's current product line is 100% organic, focused on medicinal cannabis and has a total of 18 varieties of convenient on-the-go brews.
Mary’s is working on filing documentation to the Canadian government when regulations on new licensed classes of cannabis for edibles are written. Mary’s is also in discussion with various Canadian licensed cannabis producers to produce tea products.
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.
Additionally, its global projections near $12 million of international sales year one including a CBD infused tea rollout strategy.
"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," said Meris Kott, Redfund CEO on Wednesday.
"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," added Kott.
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