Friday Night Reports Strong Revenue Growth in Path to Profitability
Ryan Allway
April 4th, 2018
Exclusive, News, Top News
The cannabis industry is expected to surpass $50 billion by 2026, according to 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 Inc. (CSE: TGIF) (OTCQB: TGIFF).
Friday Night is a majority-owner of the first licensed cultivation facility in the Las Vegas area, Alternative Medicine Association (AMA), as well as a developer of hemp and cannabidiol (CBD) infused product maker, Infused Mfg. The diversification between cannabis cultivation and hemp-based CBD products helps expand revenue streams and reduce risk, while its presence in Nevada targets one of the country’s largest recreational markets.
Strong Revenue Growth
Friday Night has seen significant revenue growth from its AMA and Infused Mfg businesses, which sets it apart from many other development-stage cultivators.
During the fiscal second quarter, the company announced a 20.2 percent sequential increase in revenue from $2,464,487 to $2,962,699 with six-month sales reaching $5.4 million. It’s worth noting that these revenue increases came despite November and December being very slow months for Las Vegas tourism. Management anticipates that revenue will move higher in future periods as tourism ticks up and the market matures.
Infused Mfg. experienced the fastest growth rate at 45 percent as it expanded both its product lines and target markets, while Alternative Medicine Association’s growth rates were in-line with management expectations at ten percent over the quarter. Management anticipates that AMA’s revenue is poised to grow significantly after the new cultivation facility comes online given the Nevada market’s chronically short cannabis supply.
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. 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.
Setting the Stage
Friday Night’s priority is the construction of its new 67,000 sq. ft. building to achieve higher production. After acquiring the land and securing zoning approval, the company is awaiting final plan approval from the county. Management had originally planned to have the new building operational by now, but regulatory delays and changes to the plans (from a one-story 35,000 sq. ft. facility to a two-story 67,000 sq. ft. facility) have delayed construction.
The company has also made progress in building new revenue streams:
- On November 3, 2017, the company reached an exclusive agreement with MariMed Advisors to produce THC products, including their unique sublingual “Melts” product line, a THC and CBD “Mints” line, “Kalm Corn” products, and the “Betty Eddies” and “Berry Bombs” line of products. Under the agreement, AMA produces these products and distributes them to all dispensaries in Nevada.
- On December 6, 2017, the company announced that AMA signed a production contract to produce high-grade concentrates for a major dispensary chain in Nevada.
In the fiscal third quarter beginning January 1, 2018, the company acquired a new wholly-owned subsidiary, Spire Secure Logistics Inc., which is a Canadian firm specializing in security, intelligence, and compliance with international clients. The acquisition enables the company to generate significant cash flow potential that is not constrained by local government regulations, but still benefits from the rapidly growing cannabis sector.
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. This includes the LOI to acquire Body & Mind Inc. in an all-stock transaction that was terminated on February 21, 2018.
Looking Ahead
Friday Night Inc. (CSE: TGIF) (OTCQB: TGIFF) represents a compelling investment opportunity in the legal cannabis space. 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. Investors may want to take a closer look at the stock given these significant catalysts moving forward.
For more information, visit the company’s website or download their investor presentation.
Disclaimer
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://cannabisfn.com/legal-disclaimer/
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
Matt Hawkins is the founder and managing principal of Cresco Capital Partners, LLC (“Cresco”), a private equity firm focused specifically on investing in the legalized cannabis industry. Since its inception in the summer of 2015, Cresco has made 14 investments out of its first fund and is currently raising this fund, Fund II. Prior to the […]
The producers of O’ Cannabiz have decades of experience producing national-profile events and creating global connections between business communities in the arts, broadcasting, media and technology. They have organized trade summit initiatives with governments around the world. And they have worked closely with sponsors in all levels of Canadian government.
Xtraction Services provides state-of-the-art, fully-automated, supercritical CO2 extraction machines with on-site staffing at no upfront cost, and a simple volume-based pricing model.
Crop Infrastructure is engaged in the business of investing, constructing, owning and leasing mega-greenhouse projects as part of the provision of turnkey real estate solutions for lease-to-licensed cannabis producers and processors offering best-in-class operations.
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
