VANCOUVER, British Columbia, March 13, 2019 (GLOBE NEWSWIRE) -- Redfund Capital Corp. (CSE: LOAN) (Frankfurt:
O3X4) (OTC: PNNRF) (“Redfund” or the “Company”) as Lender is pleased to announce the Company’s intention to convert the first
tranche of a convertible secured promissory note with Mary’s Wellness Ltd. (‘MWL”), as Borrower, into an equity position.
The Investment:
On October 15, 2018, Redfund entered into a CDN $1,000,000 promissory note with Mary’s Wellness Ltd. and were
extended a first tranche of CDN $100,000. The Note may be converted in part or its entirety, at Redfund’s discretion at any time
during the term. Additionally, the Company has the right of first refusal to provide financing to MWL upon the same business terms
as offered to Mary’s Wellness.
Upon conversion of the first tranche of the promissory note, Redfund will own 5.55% of Mary’s Wellness Ltd. The
balance of the promissory note is CDN $900,000. The convertible promissory note is secured by a general security agreement on
assets of MWL and remains in place to secure additional tranches.
The Portfolio Client:
Mary’s Wellness Ltd. of Ontario, Canada was founded by Virginia Vidal in 2016. She was inspired to start the
line of infused hot beverages to help manage her pain after the birth of her triplets in 2007. Since then, Mary’s brand has become
synonymous as a symbol of wellness through cannabis. Virginia is a frequent industry speaker at both Canadian and global cannabis
industry conferences and was also most recently a keynote speaker at the Tea and Herbal Association of Canada year end conference
as well as Canada’s Dragons Den episode on cannabis. Mary’s current product line is 100% clean and organic, focused on medicinal
cannabis and has a total of 20 varieties of convenient on-the-go brews with 12 packets in each box containing 10mg THC and 6mg CBD
per serving. Flavours available are sleep & relax, bella coola, chamomile, chai, orange pekoe, lemon, peppermint, earl grey, plain
green tea, green tea with ginger or ginseng, echinacea, berry berry, apple cider, hot chocolate, english toffee cappuccino, french
vanilla cappuccino and coffee/java.
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 with ebita in year two to
reach $5 million. Additionally, MWL global projections near $12 million of international sales year one including a CBD infused tea
rollout strategy. (Mary’s Wellness Ltd.)
According to The Tea Association of the USA, tea globally is the 2nd most consumed beverage next to water. The
Zion Market Report published in August 2018, stated that the global tea market was valued at around USD 49,456.52
million in 2017 and is expected to reach approximately USD 73,132.82 million by 2024, growing at a CAGR of around 4.5% between 2018
and 2024.
“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.
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,” stated Meris Kott, CEO.
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.
