CFN Media Group is upbeat on Friday Night Inc (), which has moved to double its existing cannabis production capacity, and represents a unique opportunity within the burgeoning industry.
The recreational cannabis focused group has moved to double its cultivation footprint in Nevada through two possible acquisitions, while divesting its CBD (cannabidiol) assets, noted CFN Media, which is a creative agency dedicated to legal cannabis.
READ THE BIG PIC – Friday Night shifting gears down in Nevada as Californian recreational market comes on stream
It says that Friday Night last month, announced that it would buy Body & Mind Inc in an all share deal.
“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.”
Friday Night has also announced a letter of intent to acquire Harvest Foundation LLC, a 10,000 sq ft cannabis cultivation facility adjacent to its Alternative Medicine Association (AMA) property, for US$1 million in cash, 10mln shares and warrants.
“AMA was the very first cannabis cultivator licensed in Las Vegas and has developed a leading brand in the city and throughout Nevada,” highlights CFN.
“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.”
Friday Night plans to divest its Infused MFG business to focus on its cultivation efforts.
Infused MFG, meanwhile, 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.
CFN concluded that Friday Night 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,” it wrote.
“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.”
Friday Night shares added 5% in Toronto to stand at C$0.84 each.