Miami, FL – November 21, 2019 (EmergingGrowth.com NewsWire) — EmergingGrowth.com, a leading independent small cap media portal with an extensive history of providing unparalleled content for the Emerging Growth markets and companies, Redfund Capital Corp. (CSE: LOAN) (OTCQB: PNNRF)
REDFUND CAPITAL SIGNS LETTER OF INTENT TO ACQUIRE SUNSHINE STATE TEA USA BASED CBD TEA COMPANY
Redfund Capital Corp. has signed a letter of intent to acquire the Sunshine State Tea Company (SSTC), based in Florida, United States.
The letter of intent was signed on Nov. 7, 2019, and will be effective for a period of 60 days or until a definitive agreement is signed between the parties. Redfund agrees to purchase 100 per cent of SSTC, which would include all formulas, rights, licences and concessions of SSTC obtained either before or after the effective date of the agreement. The company will commit to at least $500,000 of financing toward the project over a three-year period, and raise additional funds to support SSTC product expansion. Redfund will agree to a purchase price with consideration in common shares, and the valuation and amount of shares shall be agreed upon between Redfund and the Sunshine State Tea Company after completion of the due diligence process and applicable regulatory approvals.
The U.S. government legalized cannabinoid with a maximum of 0.3 per cent of THC (tetrahydrocannabinol) under the Farm Bill Act in December, 2018. In the journal Neurotherapeutics in 2015, it derived that CBD (cannabidiol), a non-psychoactive compound, can actually help reduce anxiety in people with certain anxiety-related behavioural disorders, treating stress, anxiety, depression and insomnia. Zenith Global guestimates that the U.S. CBD-filled market will reach an estimated $1.4-billion (U.S.) by 2023, making it one of the fastest-growing sectors in the overall industry.
“According to the Tea Association of America, tea is still the most consumed beverage in the [United States] next to water. Upon the signing of a definitive agreement, Redfund will have a path to its first direct revenue stream in this globally evolving CBD-infused beverage market. We will continue to expand our reach into profitable revenue streams as the CBD market expands and is given more exposure promoting its health and wellness benefits,” said Meris Kott, chief executive officer. “We are hoping to sign the definitive [agreement] in the next few weeks and look forward to pushing this CBD tea brand forward,” added Ms. Kott.
The company further wishes to announce that it has granted 100,000 options to a director. The options were issued pursuant to Redfund’s stock option plan and shall be exercisable into common shares for a period of five years being Nov. 19, 2024, at a price of 17 cents.
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 medical cannabis, hemp, and CBD-related and health-care-related target companies.
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