VANCOUVER, British Columbia, July 02, 2019 (GLOBE NEWSWIRE) -- Redfund Capital Corp (CSE: LOAN) (Frankfurt: O3X4) (OTC: PNNRF) (Redfund or the “Company”) is pleased to announce an agreement for the right to acquire 51% percent of Canadian hemp company, Wahupta Ventures Inc. of British Columbia, Canada, staking its position in the CBD sector.
Redfund Capital Corp. has secured the right to purchase 19.9% percent of Wahupta Ventures Inc. and will have the option on an additional 31.1% percent. Upon completion of the due diligence process and the signing of a definitive agreement no later than October 1st 2019, when Redfund will release further details of the transaction. Basic terms to include a financing as previously announced by Redfund on February 21st 2019, plus Redfund issuing restricted common shares from the treasury of the Company to Wahupta, and the release of the restricted shares to be based on predetermined milestones to be reached by Wahupta.
Wahupta has previously announced they harvested approximately 2.5 million pounds of flower/hemp biomass from their test crop of 2018. They are presently negotiating toll-processing and supply agreements with Canadian licensed producers in anticipation of the rollout of Canadian CBD products this fall. As well, Wahupta hopes to manufacture their own CBD product-line once health Canada has more clearly defined legislations. Wahupta has already planted near 8,000 acres primarily in Manitoba, as well as plantings in British Columbia and Saskatchewan. Wahupta anticipates their harvest in mid-September 2019 from their already planted 8,000 acres, has the potential to yield nearly 14 million pounds of flower/hemp biomass.
Redfund will take a more active role with the management of Wahupta, providing key advisory services detailed in the first agreement signed between the companies in 2017. The Company will continue to provide business and financial plans, strategy, merger/acquisition candidates, joint ventures, corporate partners and others involving financial and business related transactions. Wahupta has expressed an interest in considering a listing to the public markets in the fall, and the Redfund team will advise them in this process.
Wahupta Ventures Inc. is headquartered in Canada and the US, with offices located in Winnipeg Manitoba, Vancouver, British Columbia, and Orange County, California. Wahupta is focused on the cultivation, production, processing, and extraction of hemp and cannibidiol (CBD), while simultaneously creating key collaboration with sovereign Indigenous communities throughout North America. (www.wahupta.com)
“Many Canadian merchant banks have followed our debt financing model and while it is exciting to be a first mover; today marks the next phase of our growth cycle in the Company. Our right to acquire Wahupta secures our entrance strategy into the CBD arena, which we believe is becoming the most relevant medical cannabis global footprint. As soon as a Canadian federally permissible pathway exists and once health Canada completes their legislations for Canadian production, distribution and sale of CBD products, we will acquire additional controlling positions in other CBD focused businesses with Wahupta as our lead footprint. This strategy we believe will bring greater upside to our shareholders,” stated Meris Kott, CEO.
Company Update
Redfund Capital also announces the appointment of Mr. Kelly McQuiggan to the role of Chief Financial Officer of the Company replacing Mr. Ryan Cheung. Mr. McQuiggan has been leading finance teams in Vancouver, BC since 2008 with a focus on financial reporting, income tax, raising capital, and corporate structures. He earned his Chartered Accountant designation in Alberta after articling with KPMG LLP and MacKay LLP. Mr. McQuiggan is the founder of Cellar Door Advisors, and is a consultant with Invictus Accounting Group LLP, a boutique Vancouver advisory firm providing financial reporting and regulatory compliance services to privately held and publicly traded companies since 2012. Kelly is an avid cyclist and golfer, and is a provincial curling champion.
About Redfund Capital
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 info@redfundcapital.com
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.