All documents have been signed and the escrow has been opened with a US$25,000 deposit.
Recreational cannabis focused group Friday Night Inc (CNSX: TGIF) has further expanded its Nevada operations via a land acquisition.
It has struck an agreement to buy a further 2.78 acres directly connected to the site where its growing subsidiary AMA has its planned new cultivation facility.
The price for the land in Clark County is US$834,000.
All documents have been signed and the escrow has been opened with a US$25,000 money deposit. Closing is expected within 85 days or sooner.
"This will allow Friday Night to expand its cultivation center in phases and can accommodate an additional 150,000 square feet of cultivation space as more supply is needed in the rapidly expanding Las Vegas market," said John Goss, president of the company's wholly owned subsidiary in Nevada, FN Management Services.
"It would also allow us to expand our existing production and extraction facilities if desired. This is a great investment in our future in this market."
Friday Night Inc also said in today's statement that around C$5mln has been raised over the last two months through existing warrants, most of which were exercised at 30 cents a share.
The company estimates that there is another C$4mln in funds that will potentially come in on additional exercises.
Holders of around C$2mln of a total of C$5mln in debentures have now chosen to convert into shares at 25 cents a throw.
The company notes that it could accelerate the expiry date and force conversion of remaining warrants and debentures, but if the current rate of exercises continues, it does not expect needing to do so.
It was in August last year that Friday Night struck a deal to buy 1.39 acres of land for US$432,000 in Clark County (now increased by today's announcement), which includes areas that could be used to grow marijuana.
The acquisition included a 33,000-square-foot footprint for a building with footings already poured and full perimeter security fences, water hookups for the full sprinkler system throughout the future warehouse and 2,000 amps of power.
It also secured an estimate from to provide an additional 4,000 amps of power, which would support a two-storey cultivation of up to 66,000 sq ft of canopy.
Friday Night shares added 1.72% to C$1.18 each.
