Redfund Capital Corp (CSE:LOAN) unveiled exciting news Wednesday as it announced it was entering the European medical cannabis market with the launch of its subsidiary, First Euro Cannabis and says it is aiming to raise more than C$5 million for projects.
Markets responded, with shares of Redfund Capital up 3.9% at C$0.49 on Wednesday.
First Euro is the first medical cannabis incubator and accelerator in Europe, which finances medical cannabis, cannabidiol and hemp companies.
First Euro Cannabis will focus on sourcing strong investments in the growing number of companies involved in the space.
Redfund says having a European team on the ground in Switzerland and London is key and will assist in helping the company provide debt financing.
"The new first if its kind going-global program of First Euro Cannabis will adapt to the needs and reality of these cannabis company scale-ups, designed to improve the chances for a successful first to market international branding launch for these companies across the pond to North America as well," the company said in a release.
"A bad financing decision or strategic partnership can be fatal to any company and a small bridge loan has always been the right route to go for any company to step up to the next phase in their growth cycle," said Redfund's chief executive officer Meris Kott.
"Redfund is hoping to raise over C$5,000,000 for First Euro Cannabis medical cannabis projects."
Redfund provides 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 focus of the merchant bank is currently on medical cannabis, hemp and CBD-related and healthcare-related target companies.
The timing is ripe: tomorrow, on November 1, the UK will approve legislation allowing specialist doctors, such as neurologists and pediatricians in England, Wales, and Scotland to prescribe medicinal cannabis to their patients.
Redfund says stigma around medical cannabis remains an issue in the UK, even with the change in laws.
The company says it welcomes the fact that these new laws will help patients with epilepsy, multiple sclerosis and nausea from cancer treatment, if prescribed by their physicians.
Shares of Redfund were up 3.9% at C$0.49 on Wednesday.