Friday Night Inc () has acquired Spire Secure Logistics Inc, which specialises in security and has expertise in the cannabis industry.
By adding this business to its portfolio, Friday Night says it is diversifying its income stream and achieving exposure to international markets.
Friday Night will issue 7.14mln shares at a deemed price of 70 cents per share and closing of the deal is expected on March 1 this year.
Friday Night will allocate working capital of C$1mln to expand Spire's client base in Canada and globally.
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 seven equal tranches of 12.5% beginning on May 1 this year.
Spire is led by experts with international backgrounds in covert and undercover operations to infiltrate and disrupt organised crime, including outlaw motorcycle gangs, cartels and other violent gangs.
"The Spire team brings decades of experience in the trenches of law enforcement, security and high-stakes risk management," said Brayden Sutton, chief executive at Fright Night.
"Spire works with companies who want to make an honest dollar in a secure, compliant, law-abiding cannabis industry," added Spire chief executive Andy Richards, a 34-year law enforcement veteran who has led numerous high-profile investigations of organised 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."
When the deal closes, Richards will also join the Friday Night board of directors, the firm added.
Friday Night Inc shares shed 8.47% in Toronto to stand at C$0.54.
