Hot off of a strong first-quarter earnings report, Friday Night Inc. (TGIFF) said it was acquiring Nevada-based Body & Mind (BMMJ) in an all-stock transaction valued at C$115 million a 50% premium over Body & Mind’s recent closing price of $1.54. The Body & Mind shareholders will receive shares in Friday Night Inc.
The deal is expected to be immediately accretive to cash flow and the combination of the two companies will make it one of the larger cultivation and production companies in Nevada. The merger will result in roughly 130,000 square feet of projects under development.
“This transaction advances Friday Night into a leading position in what many believe is the best cannabis market in the world,” said Brayden Sutton, Chief Executive Officer of Friday Night Inc. “Unlike so many competitors that promise to deliver profits well in the future, we are able to deliver them now and in real time. We see a huge opportunity for further consolidation as well.”
Robert Hasman, Body & Mind President commented, “This is a meaningful win for our stakeholders but is only the beginning of consolidation here in Nevada. The financial strength of a combined entity will enable us to continue to do more transactions at a rapid pace with the ultimate goal of driving down costs, expanding product lines, and servicing our customers. I would like to thank our staff and shareholders and the overwhelming support from the investment community for this transaction.”
Friday Night Inc. is a Canadian public company, which owns and controls cannabis and hemp-based assets in Las Vegas Nevada. The company owns 91% of Alternative Medicine Association, LC (AMA), a licensed medical and adult-use cannabis cultivation and production facility that produces its own line of unique cannabis-based products and manufactures other third-party brands. Infused MFG, also a 91% owned subsidiary, produces hemp-based, CBD products, thoughtfully crafted from high quality organic botanical ingredients. Friday Night Inc. is focused on strengthening and expanding these operations within and outside of the state.
Body and Mind is a Nevada corporation which is publicly traded on the Canadian Securities Exchange. The Company was an early State of Nevada applicant in 2014 and was awarded one of the first state medical marijuana licenses for both cultivation and production. BAMM produces flower, oil extracts and edibles in its current facility and expects within the latter part of 2018 to be managing operations in facilities providing approximately 50,000 square feet.