Friday Night Expands Distribution into California
Ryan Allway
January 3rd, 2018
Exclusive, News, Top News
The cannabis industry is projected to reach $50 billion over the coming years, according to Cowen & Co., driven by the legalization of medical and adult-use cannabis in states like California and Nevada. Despite this tremendous growth, investors may want to also consider the related hemp industry, which Brightfield Group anticipates will exceed $1 billion. Friday Night Inc. (CSE: TGIF) (OTCQB: TGIFF) provides investors with exposure to both of these rapidly growing markets.
California’s Hemp Industry
The hemp-based cannabidiol (CBD) market is projected to become a billion-dollar market in just three years, according to the Brightfield Group. After crossing the $170 million mark in 2016, the analyst projects a 55% compound annual growth rate over the next few years. California could experience some of the most significant growth given the legalization of both medical and adult-use cannabis next year – a move that could increase consumer exposure to cannabinoids.
“One of the most surprising things we found during this research was how many companies are currently operating in the space, and how few of them are generating significant revenue,” said Brightfield Director of Research Bethany Gomez. “Essentially, everyone is trying to do hemp, but only a handful are doing it well. It’s seen as easy because it can be sold online but, with restrictions on traditional marketing, it is very difficult to connect with your core customer.”
The hemp-based CBD market is a highly-fragmented space where distribution is a key bottleneck. Investors interested in the space should therefore seek out established companies that have existing distribution channels for their products, particularly in states like California that are likely to see a sharp increase demand next year. Furthermore, investors may want to consider companies that are diversified across other areas of the market to reduce risk.
Expanding into California
Friday Night Inc. (CSE: TGIF) is a Canadian public company that owns both cannabis and hemp-based assets in Las Vegas, Nevada. In addition to its 91% owned Alternative Medicine Association – a licensed medical and adult-use cannabis cultivation and production facility, the company owns 91% of Infused MSG, which produced hemp-based CBD products using high quality organic botanical ingredients that are thoughtfully crafted into premium products.
On December 15, the company announced that its Canna Hemp product line would be sold to cannabis dispensaries and other retail outlets in the State of California. Management indicated that it has already received multiple purchase orders from several California retailers, which represents the first step in its efforts to expand its brand into California. The state is widely seen as becoming a hub for nationwide cannabis brands given its large size.
Friday Night’s current distribution into existing dispensaries across California solves a key issue facing many other hemp-based CBD manufacturers. The exposure of its brands in these retail locations could also increase awareness and further differentiate its products from other companies developing CBD-based supplements. With a cannabis cultivation arm, the company is uniquely positioned to build upon these relationships and create diverse revenue ahead.
Looking Ahead
Friday Night Inc. (CSE: TGIF) (OTCQB: TGIFF) represents a compelling opportunity within the burgeoning hemp-based CBD industry. With the industry projected to exceed $1 billion over the near-term, investors may appreciate the company’s dual focus on cannabis and hemp, as well as its growing distribution in California’s market via dispensaries. Management plans to continue this expansion across California and into other states over the coming years.
The company reported revenue of $2.4 million Canadian and gross profit of $1.1 million Canadian in the quarter ending October 31, 2017. This is Friday Night’s first full quarterly report since Nevada legalized adult-use on July 1, 2017. According to Brayden Sutton, Friday Night CEO, “These results prove how large our footprint is becoming and attest to how healthy the market is in Nevada. Our team has worked incredibly hard to achieve such great results, and as we fine tune operations and expand our facilities and partnerships within and outside the state, we are getting very close to becoming cash flow positive.”
For more information, visit the company’s website at www.fridaynightinc.com.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
Search CannabisFN
Press Coverage
Psychedelics Index
Top Videos
Matthew Nordgren is an ambitious executive, dedicated philanthropist, and accomplished athlete who brings a unique passion to creating strategic alliances. He has breadth and depth of experience in finance, corporate development, and capital sourcing, as well as in building highly motivated teams of skilled professionals. In 2005, Mr. Nordgren received his education at the University […]
In addition to his role as Founder and CEO at MAZAKALI, Sumit is a consultant to The Arcview Group and the Managing Partner of Emerald Ventures. A frequent speaker at investment seminars, Sumit acts as a mentor to Arcview and Canopy companies and serves on the Canopy Investment committee as well as the NCIA Finance […]
True Leaf is a Licensed Producer of cannabis preparing to launch a program to provide seed-to-shelf solutions for micro-cultivators.
MagicMed Industries intends to partner with pharmaceutical and other companies to develop psychedelic-derived medicinal and licit consumer goods products.
Network Partners
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.
Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer
