Redfund Capital Enters Promissory Note with Cannaki Beverage Inc., Expanding Cannabis Beverage Market Reach

Redfund Capital Corp. has announced a significant move in the cannabis beverage sector by entering into a two-year, $1,000,000 convertible secured promissory note with Cannaki Beverage Inc., a Las Vegas-based manufacturer known for its natural and organic functional beverages, including Nano CBD infused flavored waters. This partnership, signed on March 27, 2019, not only provides Cannaki with essential funding at a 14 percent annual interest rate but also grants Redfund Capital the option to convert the note into equity and a right of first refusal for future financing under similar terms.

The agreement includes stock warrants for Redfund, equivalent to 20 percent of the note amount based on Cannaki's current valuation of $20,000,000. This strategic investment underscores the potential Redfund sees in Cannaki's expansion plans, particularly in Asia and South America, alongside its established networks in the USA, Mexico, and Europe. Redfund Capital CEO Meris Kott highlighted the excitement around adding a beverage company with a strong, experienced team to their portfolio, emphasizing the belief in branded cannabis sector products with a global rollout strategy leading the industry.

This development is pivotal for the cannabis and psychedelic industries, as it represents the growing interest and investment in cannabis-infused beverages, a segment expected to flourish as legalization spreads. The partnership between Redfund and Cannaki could pave the way for introducing CBD beverages in Canada once permitted, aligning with a licensed Canadian producer. This move not only benefits the companies involved but also signals to the market the increasing viability and consumer demand for cannabis-related products, potentially influencing future investments and partnerships in the sector.