Friday Night Archives - Green Market Report

StaffStaffFebruary 26, 2018
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Friday Night Inc. (TGIFF) last week terminated its decision to buy Body & Mind Inc. (BAM) and this week announced it was acquiring Spire Secure Logistics instead.

Friday Night had entered into an all-stock agreement valued at C$115 million to acquire BAM, but then issued an announcement that both parties agreed to terminate the deal. Body and Mind CEO Leonard Clough commented, “Market conditions and the revised consideration proposal to our shareholders played a role in the decision to mutually terminate the proposed amalgamation plan.”

Friday Night Inc. CEO Brayden Sutton said, “Recent market events out of our control turned the BAM acquisition into a moving target.  To keep renegotiating terms and delaying the closing date is not fair to shareholders on either side, all the while both companies may be missing other opportunities.”

On Monday, Friday Night said it had acquired Canadian security company Spire Secure Logistics Inc. (“Spire”)as a wholly owned subsidiary. The private company specializes in security, intelligence, and compliance with international clients It also has expertise in both the regulated cannabis industry and other sectors.

In a company statement, Friday Night said it “Agreed to acquire 100% of Spire by the issuance of 7,142,857 common shares at a deemed price of $0.70 per share.  Closing is scheduled for March 1, 2018.  Friday Night will allocate working capital of CAD $1,000,000 to expand Spire’s client base in Canada and globally.  The shares issued will be subject to an escrow arrangement that will see 12.5% released from escrow on closing and the remaining 87.5% being released to the vendors in 7 equal tranches of 12.5%, each to be issued on the first day of each quarter of Friday Night’s fiscal year, beginning with May 1, 2018.”

Management Comments

“The Spire team brings decades of experience in the trenches of law enforcement, security, and high-stakes risk management,” said Sutton. “Spire is uniquely equipped to keep companies safe, secure, and compliant – which in turn creates more shareholder value and peace of mind.  I am extremely honored to call the Spire team a part of our family and look forward to the increased level of intelligence and awareness it brings us as a company, whether that be in current operations or when evaluating other opportunities in the sector.”

“Spire works with companies who want to make an honest dollar in a secure, compliant, law-abiding cannabis industry,” said Spire’s CEO Andy Richards, a 34-year law enforcement veteran who has led numerous high-profile investigations of organized drug crime. “Whether it’s regulatory applications, security procedures, or working hand-in-hand with government and law enforcement, our team has the right skills, connections, and experience to deliver.”

 

 


Debra BorchardtDebra BorchardtDecember 21, 2017
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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.

Management Comments

“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.”

The Companies

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.


Debra BorchardtDebra BorchardtDecember 20, 2017
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Canadian-based Friday Night Inc. (TGIFF) reported its first-quarter results with C$2.5 million in gross revenues versus no revenue from the same time period in 2016. The stock jumped over 18% on the news to lately trade at 71 cents on the OTC Marketplace.

While the revenues were signs of great progress, the company did deliver net losses of C$599,582 versus last year’s net loss of C$113,290 for the same time period. The losses were associated with the increased expenses as the company has worked to enter the Nevada market. Although the company reported a net loss, it also recorded gross profits of C$1.1 million and is well-positioned with C$5.6 million in cash at the end of the quarter.

“These results prove how large our footprint is becoming and attest to how healthy the market is in Nevada,” said Brayden Sutton, CEO of Friday Night.  “Our team has worked incredibly hard to achieve such great results, and as we fine-tune operations and expand our facilities and partnerships within and outside the state, we are getting very close to becoming cash flow positive.”

Developments in Q1 According To The Company’s Statement

  • Friday Night announced on August 4th that its 91% owned subsidiary, Alternative Medicine Association signed an exclusive license agreement with “Krypted”, a vaping brand from California, to increase its Nevada offerings.
  • Friday Night entered into a land purchase agreement to expand the AMA facilities.  The proposed building will be a 66,000 sq. ft. state of the art cultivation facility.
  • Friday Night’s CannaHemp brand launched CannaHemp Paws, which brought a new product to the pet CBD market.
  • On September 15th, 2017, “Kurupt” granted exclusive rights to AMA to grow, process and distribute “The Real Kurupt’s MoonRock” in Nevada.
  • Management closed two financings of convertible debenture units for a total of $6,500,000 aggregate principal amount.

Friday Night 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 of high quality organic botanical ingredients.


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