Friday Night’s priority is building a new 67,000 sq ft building to boost production...
Nevada-focused Friday Night Inc (CSE:TGIF, OTCQB:TGIFF) represents a 'compelling' investment opportunity in the legal cannabis space, according to an article on CFN Media.
"In addition to its existing revenue growth, the company’s Nevada facility is nearing final approval and could produce significant shareholder value over the coming years once complete," it says.
READ THE ARTICLE HERE..
Friday Night’s priority is building a new 67,000 sq ft building to boost production.
After acquiring the land and securing zoning approval, it is now awaiting final plan approval from the county.
Friday Night owns the first licensed cultivation facility in the Las Vegas area, Alternative Medicine Association (AMA), as well as the developer of hemp and cannabidiol (CBD) infused product maker called Infused Mfg.
Robust results..
Last week, the group reported a 20.2% increase in total sales in the second quarter against the first.
The figure was C$2.96mln compared to C$2.46mln in the first quarter and the increase was contributed to by both Las Vegas subsidiaries.
Alternative Medicine Association (AMA) has increased its focus on producing higher quality plants that command a higher price in the marketplace. Sales were up 11%.
Infused Mfg has increased its product offering, and both its top line sales and profits significantly contributed to the company's bottom line, it said. Sales added an impressive 45%.
"On the bottom line, gross profits reached $1,579,127, representing attractive gross margins of about 53.3 percent, while the company’s balance sheet remains robust with $15,753,139 in cash and cash equivalents," said CFN.
"These cash reserves provide ample buying power to complete future acquisitions and build out its new cultivation facility in Nevada, while strong profit margins pave the way towards profitability over the coming years."
Growing industry..
Notably, the pot industry is expected to surpass US$50bn by 2026, according to investment banker and advisor Cowen & Co, driven by the legalization of adult-use and medical cannabis in a growing number of states.
"In addition to California, Nevada has become one of the most promising states that has legalized adult-use cannabis given its enormous tourism industry. Investors looking for exposure to the market should look no further than Friday Night," says the article.
The company is also building new revenue streams.
Last November, it reached an exclusive agreement with MariMed Advisors to produce THC products, including their “Melts” product line, a “Mints” line, “Kalm Corn” products, and the "Betty Eddies” and “Berry Bombs” line of products.
This year it also acquired Spire Secure Logistics, a private Canadian firm specializing in security, intelligence, with expertise in both the regulated cannabis industry and other sectors.
"Management also continues to look at various acquisition targets to augment its current operations, both within and outside of Nevada.
"It has entered into numerous LOIs that did not close as management determined these acquisitions either did not meet its stringent specifications or the asking price was not justifiable," said the article.
Friday Night shares are up 3.77% to C$0.55 in Toronto.