Medical cannabis financier Redfund Capital Corp (CSE:LOAN) said Friday that legalization of marijuana in three additional US states is a milestone for the industry and its clients.
In Tuesday’s midterm US elections, Michigan became the 10th state to approve recreational use of marijuana while Missouri and Utah voted in favor of allowing its medical use. North Dakota rejected allowing recreational pot, and marijuana remains illegal at the federal level.
In morning trading in Canada, Redfund shares were up 6% to C$0.53, while its US-listed stock was flat at US$0.38 per share on the OTC Markets.
“The midterm elections are a positive sign to all of us that the United States will mainstream medical cannabis in the very near future,” CEO Meris Kott said in a statement. “We look forward to expanding into markets supporting these initiatives."
Vancouver-based Redfund’s clients include Biolog Inc, a Silicon Valley company that is advancing a technology to add cannabis to food and beverages, and RxMM Health Care, a company in Irvine, California, whose products including a treatment for Alzheimer’s.
Legalization of marijuana is also moving forward outside the United States.
As of November 1, doctors in the United Kingdom can prescribe medical cannabis when other treatments have failed. The decision comes after two boys with severe epilepsy were denied treatments.
Redfund shares nudged up 2% in Torontro to stand at $0.51.
Contact Dennis Fitzgerald at [email protected]