The firm told investors it had struck a letter of intent to acquire 100% of the Harvest Foundation
Recreational cannabis-focused group Friday Night Inc () just keeps on rolling - announcing today it has potentially doubled its current cultivation capacity.
The firm told investors it had struck a letter of intent to acquire 100% of the Harvest Foundation - a cultivation facility, which lies next to Friday Night's production subsidiary Alternative Medicine Association (AMA) in Las Vegas, Nevada.
READ: Friday Night advances as it unveils plans to spin out Infused MFG
AMA currently manages the Harvest facility, which is around 10,000 sq ft (square feet) under contract.
"Integrating the Harvest Foundation license and facility into our business is a huge milestone and this new license effectively doubles our current cultivation capacity," said Brayden Sutton, the president and chief executive of Friday Night.
The purchase price is US$1mln plus 10mln common shares in Friday Night and one fifth of a stock purchase warrant.
Each whole warrant will be priced at 120% of the market price at closing, said Friday Night.
The shares will be escrowed over 36 months.
Yesterday, shares in Friday Night advanced as it updated investors on its Body and Mind Inc acquisition and unveiled a plan to spin out the Infused Mfg subsidiary.
READ: Friday Night and IAnthus Capital Holdings suggest action unlikely after US govt's cannabis memo
Infused is a Nevada-based firm that provides legal hemp-derived and cannabidiol (or CBD) products, and Friday Night bought a 91% stake last year.
Friday Night said it had struck an agreement in principle with the holder of the 9% interest of Infused and its other subsidiary Alternate Medicine Association (AMA).
The deal would see an exchange of the minority interest in AMA for an interest in Infused MFG, which would then be spun out as a separate publicly traded company.
Friday Night reckons Infused MFG and its Canna Hemp brand has been successfully built and the "time is right" for a separate management team to expand on its success.
Also, it could thrive on its CBD products alone, so its spin out gets rid of any volatility associated with USA cannabis-based businesses.
Friday Night Inc shares added 2.04% on Tuesday to stand at C$1.00 each.
