Friday Night Builds Cultivation Presence, Narrows Focus -- CFN Media
January 31 2018 - 9:00AM
CFN Media Group ("CannabisFN"), the leading creative agency and
media network dedicated to legal cannabis, announces publication of
an article covering Friday Night Inc.’s (CSE:TGIF) (CNSX:TGIF)
(TGIF.CN) (OTCQB:TGIFF) recent moves to double down on its
cultivation footprint in Nevada through two possible acquisitions
in its pipeline while divesting its CBD assets.
The U.S. cannabis industry is projected to reach $50 billion by
2026, according to Cowen & Co., driven by the legalization of
adult-use marijuana. While California may be the most widely known
opportunity, investors shouldn’t ignore states like Nevada that
have a large tourism industry and may be further along the path
towards commercialization. These states may also be less
competitive, which creates an opportunity for investors to
profit.
Expanding Cultivation
Friday Night announced that it would acquire Body & Mind
Inc. in an all-stock acquisition last December. With approximately
130,000 sq. ft. of facility projects under development, the
acquisition will make the combined company one of the largest
cultivation and production companies in Nevada. The per-unit costs
will also be among the lowest with diverse product lines designed
to serve a wide range of clientele.
The company also announced a letter of intent to acquire Harvest
Foundation LLC, a 10,000 sq. ft. cannabis cultivation facility
located adjacent to its Alternative Medicine Association (AMA)
property, for $1 million in cash, ten million shares, and warrants.
The company’s AMA already manages the Harvest Foundation’s
cultivation facility under a contract, but the outright acquisition
will provide direct access to cannabis product and effectively
double its current cultivation capacity.
Taken together, the two moves show Friday Night’s focus on
expanding an already impressive cultivation footprint. AMA was the
very first cannabis cultivator licensed in Las Vegas and has
developed a leading brand in the city and throughout Nevada.
Increased production capacity could allow the company to expand
sales of its established brands. The company’s products include
Vegas J’s pre-rolls and strains with the highest THC percentages in
the state. It also is the official Nevada producer of products like
Vader Extracts, Spectrum Concentrates, and The Real Kurupt’s
Moonrocks.
Narrowing Its Focus
Friday Night plans to divest its Infused MFG business to focus
on its cultivation efforts. On January 15, the company announced
that it plans to spin out its Infused MFG into a separate
publicly-traded company prior to the close of the BAM transaction.
Management believes that Infused MFG and its Canna Hemp brand would
benefit from a dedicated management team to focus on its
success.
Under the terms of the spin out, Friday Night shareholders will
receive one share of Infused MFG for every four shares of the
company. The transaction also contemplates the exchange of the
minority interest in AMA, currently owned by third-parties, for an
interest in Infused MFG. Friday Night would also backstop an
initial private placement to provide the new company with cash
reserves to make acquisitions and expand organically.
Infused MFG will also be able to focus on the cannabidiol - or
CBD - business, which is less affected by the volatility associated
with cannabis-based businesses in the United States. Investors may
find it much easier to assign a premium value to the business given
this reduced volatility, compared to the implied valuation that it
has as a part of Friday Night. In other words, there is a lot of
potential value that could be unlocked.
Looking Ahead
Friday Night Inc. (CSE:TGIF) (OTCQB:TGIFF) represents a unique
opportunity within the burgeoning cannabis industry. After
acquiring new cultivation space in Nevada, the company is
positioned to more than double its existing production capacity in
the near-term. Management’s plans to spin out the Infused MFG
business could also help unlock value by enabling new management to
focus squarely on CBD and investors to better value each
component.
Please follow the link to read the full
article:
http://www.cannabisfn.com/friday-night-builds-cultivation-presence-narrows-focus/
For more information, visit the company’s website at
www.fridaynightinc.com.
About CFN Media
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