Redfund Capital Corp (CSE:LOAN) has completed its first investment - of US$3mln - into advanced Colombian cannabis group Biominerales Pharma Corp (BMP Colombia).
The group, first established in 2014, was one of the first Colombian companies authorised to legally market medical cannabis in Colombia, throughout South America and worldwide. The BMP team is located in Bogota and currently partners with 180 cultivators and works closely with chemical engineers, agronomists and top local and international doctors.
"As we continue to build one of the only Colombian vertically integrated supply chain and processing services in the Medicinal Cannabis and CBD industry, we are very excited to partner with Redfund," said Adriana Rios, chief executive at Biominerales Pharma.
"Their long-term support in helping us execute our overall strategy will accelerate our mission to develop best in class products and services and deliver on our social strategy to create jobs and assist local Colombian farmers.
"Having the financial backing of Redfund will bring further validation to our global model.
Meris Kott, chief executive at Redfund, added: "We have been working with Adriana and her team for many months and today marks a major success for both our companies. Felicidades!
Leader in Colombia
"Biominerales is a leader today in Colombia and will be one of the first to harvest a crop and place Colombia on the global Medicinal Cannabis and CBD stage. I am very proud to be partnering with one of the few Women in Cannabis in Colombia. Redfund will continue to finance BMP and help the company realize their complete business plan."
Last week, Redfund and BMP signed a two-year convertible secured promissory note for US$3mln, at an annual interest rate of 14%, of which the first tranche of US$200,000 has already been tendered.
The note can be converted at Redfund's discretion at any time during the term and the company also has a right of first refusal to provide financing to BMP upon the same business terms as are being offered to BMP by any other funders.