- Israel on brink of removing ban on export of medical marijuana
- Redfund makes first investment in cannabis beverage company Biolog Inc.
- Biolog to collaborate in initiative to develop water-soluble cannabinoids
Recent developments in regulation and research and development in the cannabis space are set to swell the project pipeline of Redfund Capital Corp. (CSE: LOAN) (OTC: PNNRF) (Frankfurt: O3X4). In November, a government committee in Israel approved the first draft of a law on the export of medical cannabis, a move welcomed by the industry, with one commentator (http://nnw.fm/1hY7j) opining, “Although a small step in the dry process of legislation, it’s a huge leap forward for the industry.” Medical cannabis has been domestically available in Israel for at least two decades. Its export, however, has been prohibited, leaving untapped, some say, a market worth around $4 billion.
The course of cannabis in Israel has meandered over the years. Most notably, it was in Israel that Raphael Mechoulam and Yechiel Gaoni started research on cannabis in the 1960s, with their work eventually leading to the identification and isolation of tetrahydrocannabinol (THC), the psychotropic component in marijuana. Today, Israel continues to lead research into cannabinoids. Yet, recreational use of cannabis remains illegal and will continue to do so until April 1, 2019. Additionally, export of medical cannabis is banned. Nevertheless, change is imminent. In 2017, two Israeli government departments recommended that export of medical cannabis be given the go-ahead. A committee made up of members from the Ministries of Finance and Health estimated that the Israeli export market could be valued at one to four billion shekels ($275 million to over $1 billion).
Redfund Capital Corp. is a merchant bank focused on providing debt and equity funding to mid- and late-stage companies. The bank’s current focus is on medical cannabis, hemp and cannabidiol (CBD) related companies. Redfund is keeping a close eye on developments in the Middle Eastern nation. The merchant bank has been performing due diligence on a number of potential target companies located there. One such company is developing technology that could change how cannabis is grown for medical cannabis patients. A second is a medical products and CDB company, while a third has research and development facilities in Israel and grow operations abroad. Redfund is looking to Israel as the next country to forge strong relationships with for its banking initiatives (http://nnw.fm/w6YoO).
In August 2018, Redfund announced that it had completed its first investment. The landmark initiative took the form of equity financing in Biolog Inc., a California-based company (http://nnw.fm/Ed3Bq). Biolog Inc. operates in the fast-growing market for CBD edibles and infused beverages. Its products are expected to employ DehydraTECH technology, under license from Lexaria Bioscience Corporation (CSE: LXX) (OTCQX: LXRP), which will enhance their taste and improve the bioavailability of active ingredients. Biolog has also announced a partnership with Cannabis Strategic Ventures, Inc. (OTC: NUGS) to develop water-soluble cannabis technologies for cannabis- and phytocannabinoid-infused foods, beverages and consumer products (http://nnw.fm/Pph5B).
Cannabinoids, including CBD, are lipophilic (akin to fats and oils) and thus not soluble in water. Various methods, such as emulsification, have been attempted to make them more so, but many drawbacks still remain. This joint effort between Biolog, Inc. and Cannabis Strategic Ventures will seek to push past these limitations to develop a new set of compounds that can be easily added to foods, beverages, cosmetics and other consumer products. The result is expected to make cannabis more usable, thus significantly improving bioavailability and overall benefits to the human body.
For more information, visit the company’s website at www.RedfundCapital.com
More from NetworkNewsWire
NetworkNewsWire (NNW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with NNW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.
To receive SMS text alerts from NetworkNewsWire, text “STOCKS” to 77948 (U.S. Mobile Phones Only)
For more information, please visit https://www.networknewswire.com