Vancouver, British Columbia, December 14, 2020 – Redfund Capital Corp. (CSE: LOAN) (Frankfurt:O3X4) (OTC QB: PNNRF) (Redfund or the “Company”) announces it has signed a binding letter of intent (”BLOI”) with Montana Global Limited (“Montana”) a leading luxury wellness CBD brand based in the United Kingdom. Redfund will have the option to earn up to an 80% interest in Montana.
The Focus: Global Wellness Products
As the global CBD market matures, luxury consumers are approaching health and wellness in a more holistic way and purchasing premium branded CBD products as nutraceutical must-haves rather than as non-core indulgences. CBD is also entering the mainstream via the widening digital distribution channels for health and wellness products. CBD oils promotes internal balance by affecting the body’s endocannabinoid system, a system that helps regulate the different functions of the body
The Acquisition: Montana Global Limited
Montana was launched in 2019 in the UK with the intention of providing luxury minded consumers with superior CBD oil products. Its founders are medical cannabis investors Melissa Sturgess and Dr Inbar Pomeranchik. Montana is the UK’s first optimum wellness CBD oil company and produces premium CBD oils for people who want to buy entirely trustworthy products, based on the highest quality scientific research from around the world. Its first product, Montana No.1, is created from scientific first principles with CBD and a formulation of terpenes designed for everyday wellness. It has a strong core following in the UK from premium-focused customers. About Montana can be found on its website at www.montanawellness.co
The Deal: European Acquisition
The BLOI sets out the parameters for the proposed transactions and how the parties will work together. The due diligence period will last 60 days and during that time Redfund and Montana will sign a definitive agreement detailing the exact terms of the deal and disclose further details when appropriate. In the BLOI, Redfund agrees to purchase up to 80% of the rights to the products and licenses from Montana over a 3-year term as follows:
- 250K GBP for 25% interest
- Additional 250K GBP for an additional 25% interest
- Investment up to GBP 1 million to earn an additional 30% interest
- Montana will retain a royalty of 3% and Montana will fund its 20% of costs or dilute according to a formula to be agreed
- Redfund will issue Montana 1 million restricted common shares valued at .05 per share which is the equivalent of CDN $50,000 at closing subject to the completion of a due diligence review and signing of a definitive agreement
“We are delighted to work with Meris and the Redfund team to realize the potential of Montana. We understand the science of CBD and what we want as luxury consumers ourselves. We have achieved our objective of proof of Montana No.1’s efficacy and our repeat customers are a testament to the luxury wellness support that it provides for sleep, anxiety, mental focus and pain. We are excited that with Redfund’s input Montana No.1 can help more people and Montana can continue its growth,” Melissa Sturgess, Montana Co-founder and CEO.
“Montana has empowered and educated women about the health benefits of CBD oil with their successful product launch in the UK. Melissa its founder has redefined the path within the medical cannabis space in the UK and continues to push forward to help patients have more affordable and better access to the plant. We look forward to a global launch for Montana and increasing their luxury brand customer base worldwide. This is just the first of many acquisitions planned for Redfund this quarter as we continue to build a formidable global wellness platform and begin our fundraising initiatives to bring increased value to our shareholders,” stated Meris Kott, CEO.
Annual General Meeting Changes Due to Covid -19 Government Policies:
Due to the ongoing COVID-19 pandemic and consistent with public health measures enacted and recommended by the Federal and Provincial Governments of Canada and British Columbia, the Company will be holding its previously announced AGM on Monday December 21, 2020 at 10:00AM PCT virtually. Shareholders will not be able to attend the meeting in person and instead are asked to complete the voting of their shares online, or to complete the form of proxy received from the transfer agent, and deliver it by fax or by mail in accordance with the instructions set out on the proxy or in the Information Circular to ensure that their shares will be voted at the Meeting. Shareholders are now invited to send an email to [email protected] or to call 604-283-6110 to request access codes for the virtual annual general meeting.
About Redfund Capital Corp.
Redfund partners with first mover, high growth companies, and provides them with access to capital, resources, and infrastructure. The present focus of the merchant bank is on global wellness, hemp and CBD-related, healthcare-related target companies.
For further information please visit www.redfundcapital.com
For more information on Redfund Capital Corp. contact
Meris Kott CEO
604.484.0355 or [email protected]
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.