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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%.

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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 --

Quick facts: Redfund Capital Corp.

Price: 0.09 CAD

CSE:LOAN
Market: CSE
Market Cap: $4.71 m
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