Hello Bull Market Letter Subscribers,
As you have probably heard, on July 1st , 2017, the State of Nevada legalized recreational usage of cannabis for adults 21 and up.
“Fabulous Las Vegas,” is the largest city in Nevada and is located in Clark County with a population of over two million residents that see over 45 million visitors every year… that calculates to over 900,000 new potential customers rotating in and out each week. Las Vegas or “Sin City” is the epicenter of partying and carnal sin – which can now partake in the use of cannabis – in all forms.
I grew up in Vancouver, Canada, and we have been renowned for our “BC Bud.” I can neither confirm nor deny that I am aware of cannabis’s power for enhancing of the senses. What does Las Vegas have that could possibly be made better with the use of cannabis? …everything? Las Vegas has world-class restaurants, themed casinos with bright lights, rides, gambling, shows, clubs and hottest party’s in the world! Now with 45 million people headed to “Sin City” to spend money, have some fun, unwind and party, don’t you think a fair amount of those tourists might be going to a dispensary to buy legal cannabis? Las Vegas is the “New Amsterdam of the Western World,” with munchies and amusement everywhere!
So how do we leverage this new information as investors?
Bull Market Letter subscribers, it is time to pay close attention to the following company:
Friday Night Inc. (CSE: TGIF) (FRANKFURT: 1QF) a Canadian public company that owns both hemp- and cannabis-based operations in Nevada.
“Friday Night Inc. represents a lifestyle. As a lifestyle brand, we are focused on our customer’s wants and desires, helping to create experiences and memories for a lifetime.”
Friday Night and its team of industry professionals strive to seek out only the highest-quality, accretive assets in this exciting new sector. “We provide expertise and capital, and only work with best-of-breed teams,” Brayden Sutton, President & CEO.
Brayden R. Sutton, President, CEO & Director
Mr. Sutton recently served as the Executive VP for Supreme Pharmaceuticals Inc. (TSX.V: FIRE). Supreme went from a start-up, with a $3-million market cap to over a $200-million market cap as a cannabis cultivator in Canada. Mr. Sutton, having played an important role in the success of Supreme makes him a great fit as the President of Friday Night.
His expertise within the legal cannabis sector has resulted in additional consulting roles, with both public and private companies, at the leading edge of the emerging cannabis industry, including Invictus MD (TSX.V: IMH), Aurora Cannabis (TSX.V: ACB) and CannaRoyalty (CSE: CRZ).
In my personal opinion, Mr. Sutton comes across as a genuine, well-spoken and intelligent business man. He has a bright vision to make Friday Night one of strongest brand names in the U.S. cannabis market.
Mark Zobrist, BA/JD, of FN Pharmaceuticals
Mr. Zobrist serves as Managing Partner for Alternative Medicine Association, a State-licensed cannabis cultivator and producer.
John Goss, Director, FN Pharmaceuticals
Mr. Goss has over 27 years of commercial construction and facility, project management expertise in the Nevada marketplace.
Brian Keane, BSc, Director
Mr. Keane has over 17 years of Capital Markets, investing and C-level consulting experience.
Michael Hopkinson, CFO
Mr. Michael Hopkinson is a US Certified Public Accountant (CPA).
David Stadnyk, Founder Stadnyk & Partners
Mr. David Stadnyk is the Founder of Supreme Pharmaceuticals and of Stadnyk & Partners Family Offices and Venture Capital.
Friday Night Inc. has acquired 91% of subsidiary Alternative Medicine Association (AMA). The company owns and operates a licensed medical and adult-use cannabis cultivation and production facility in Las Vegas, Nevada, with production facility sales of $1.1-million in 2016; projected $5-million in sales in 2017; $20-million in sales in 2018; and $50-million in sales in 2019.
- 12,000-square-foot cannabis cultivation and production facility
- Servicing 37 of the 47 licensed dispensaries in Clark County (Las Vegas)
- High demand strains with highest THC percentages in the State (several over 30%)
- AMA has premium extracts, oils, moonrocks and “Vegas Js” their brand of pre-rolled cannabis – the Las Vegas Original
- Variety of dried cannabis products as well as cannabis edibles and other derivatives
Friday Night Inc. also acquired a 91% subsidiary, Infused Manufacturing, a brand of hemp-derived CBD-infused (cannabidiol) topical tinctures and cosmetics that do not contain THC (tetrahydrocannabinol) and thus can be shipped legally to all 50 U.S. states. www.cannahemp.com
- 5,000-square-foot production and fulfillment facility
- Hemp-based topicals, tinctures, creams, lip balms, CBD vape cartridges and capsules may be ordered online and shipped nationwide
- Infused MFG has access to age-old family formulas and uses only the highest-quality, natural, organic ingredients
The Hemp Business Journal estimated that the CBD market will grow to a $2.1-billion market in consumer sales by 2020 with $450-million of those sales coming from hemp-based sources. That’s a 700% increase from 2016. In 2015, the market for consumer sales of hemp-derived CBD products was $90-million, plus another $112-million in cannabis-derived CBD products which were sold through dispensaries – bringing a total CBD market to $202 million last year. https://www.forbes.com/sites/debraborchardt/2016/12/12/the-cannabis-market-that-could-grow-700-by-2020/#36007d784be1
On July 7th, 2017 Friday Night Inc.’s reported
ALTERNATIVE MEDICINE ASSOCIATION REACHES RECORD SALES
Friday Night Inc. has provided an update on the company’s 91-per-cent-owned asset, Alternative Medicine Association LC (AMA), which continues to achieve record sales in Las Vegas.
AMA earned $902,000 in gross revenues for the month of June, 2017. This is a $611,000 increase over the prior month’s sales and represents a monthly revenue growth of 210 per cent. This was due to the retail demand leading up to the July 1 rollout of adult-use cannabis sales. The first four days of legal cannabis sales in the state brought in $3-million (U.S.) which generated $500,000 (U.S.) in tax revenue. The company expects this strong demand to continue and is planning accordingly.
Due to this expected increase in demand for dried cannabis and derivative products, the company is currently evaluating real estate options in Las Vegas, with the goal of finding a larger footprint for the AMA facility to take full advantage of the current landscape.
Brayden Sutton, CEO of the company, commented: “Timing is everything and we feel that every day counts in this sector as it evolves so quickly. American roots, but global growth; we have a first-mover advantage in Las Vegas that will only last so long. While we are elated with the increasing performance of AMA, we are also in a constant state of evaluating additional accretive opportunities to further our brand around the world.”
On July 4th , 2017 Friday Night Inc. reports
Mark Zobrist, director of Alternative Medicine Association LC, the company’s 91-per-cent subsidiary, commented: “We expected a good turnout to kick off the July 1 adult-use celebration, but lines were still exceeding 100 people six hours later at some locations. We were making deliveries to stock retail stores until 11 p.m. Friday night. Our grower commented that, at this rate, the state could be out of cannabis by the end of the month.”
Friday Night arranges $7.5M debenture unit offering
On July 10th, 2017 Friday Night Inc. reported
FRIDAY NIGHT INC. ANNOUNCES $7.5 MILLION BROKERED PRIVATE PLACEMENT OF CONVERTIBLE DEBENTURE UNITS
Friday Night Inc. has entered into an agreement with Canaccord Genuity Corp. pursuant to which the agent has agreed to act as exclusive agent, on a commercially reasonable efforts basis, in respect of a private placement of $7.5-million aggregate principal amount of convertible debenture units at a price of $1,000 per convertible debenture unit. Each convertible debenture unit will consist of a $1,000 principal amount of 10 per cent senior unsecured convertible debentures and 4,000 common share purchase warrants of the company. Each warrant will be exercisable to acquire one common share of the company at an exercise price of 35 cents per warrant share for a period of two years following the closing date (as hereinafter defined) of the offering, subject to the company’s right to accelerate expiry in certain circumstances. The company has granted the agent the right to increase the size of the offering by $2.5-million.
The convertible debentures will bear interest from the date of closing at 10.0 per cent per annum, payable semi-annually on June 30 and Dec. 31 of each year, and will mature 24 months after closing. Subject to any required regulatory approval and provided no event of default has occurred and is continuing, the company shall have the option to pay such interest by the issuance of common shares of the company at a deemed price of 25 cents per share. The convertible debentures will be convertible at the option of the holder into common shares at any time prior to the close of business on the maturity date at a conversion price of 25 cents per common share.
The company intends to use the net proceeds of the offering for expanding its growing operations in Las Vegas, Nev., and for general corporate purposes. Closing of the offering is expected to occur on or about July 31, 2017. The offering is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including approval of the Canadian Securities Exchange.
Brayden Sutton, chief executive officer of the company, commented, “Given the better-than-expected initial demand for adult recreational use in Las Vegas, we are currently looking at alternatives that would allow us to expand our production capabilities.”
On July 14th, 2017 Friday Night Inc. Reported
Friday Night’s Infused has June sales of $30,000 (U.S.)
INFUSED MFG LLC, PROGRESS REPORT
Friday Night Inc. is providing an update on the company’s 91-per-cent-owned asset, Infused MFG LLC.
- Infused grossed over $30,000 (U.S.) of sales in June, which is twice the initial projected amount of $15,000 (U.S.).
- Infused moved into a new, 5,000-square-foot production and fulfillment centre on May 1 of 2017.
- Infused’s CannaHemp line was launched on June 1, 2017.
- Operations in the month of June grossed over $30,000 (U.S.) in local sales.
- Additional employees were added in July to meet the increase in production and sales.
- Focused on fulfilling the local appetite with targeted e-commerce and on-line marketing.
Infused moved into a state-of-the-art 5,000-square-foot facility and has since launched an e-commerce site that has generated over $6,000 (U.S.) in 30 days. Infused has also generated an additional $24,000 (U.S.) in sales over the last month in local Las Vegas retail stores.
Today, Infused is launching an all-new line of cannabidiol dab products. These products are tetrahydrocannabinol-free, CBD extracts made with real cannabis terpenes formulated from AMA’s popular Tangerine Dream and Diamond OG strains. Infused’s out-of-the-gate success, coupled with the recent record sales at Alternative Medicine Association, further re-enforces the quality of the company’s two core assets in Las Vegas, Nev. The company looks forward to providing further updates as it progresses.
Morgan Rebentisch, general manager of Infused, commented: “We’re so excited about the success of our CannaHemp product line. We are humbled by the daily feedback from our customers on how our products have improved their quality of life. These individual success stories are the fuel that is driving our brand forward.”
Obviously, Friday Night Inc. is hitting the ground running with recreational sales. It is focused on continuing to increase its sales and distribution. It has the first-mover advantage, however, that isn’t expected to last a long time as others come into the space. To combat this, Friday Night is planning rapid expansion.
What Friday Night is doing is building a “brand name” at the right time in the newest and fifth state in the United States to legalize recreational cannabis use.
Las Vegas is one the most attractive tourist destinations in the world. It will be relocating NFL Raiders to Las Vegas and has its new NHL team the Golden Knights, will only continue to add more appeal to Las Vegas as a place to live and vacation too.
Friday Night is a truly brilliant name for a Life Style brand because it reminds us of good times. Fright Night is when the good times roll and people come together to unwind and celebrate.
Friday Night is focused being the most recognized and popular brand in Nevada, with sights on more opportunities to grow its business into more states and countries.
Shares Outstanding – 145,858,016
Options – 17,507,500
Warrants – 28,079,837
Fully diluted – 191,445,353
Friday Night Inc. started trading again on June 6th 2017, after completing its financing, name/symbol change and 2:1 rollback. It last traded at 24.5 cents on July 14 ,2017. It has traded as low as 19 cents and high as 40 cents. It has traded over 32 million shares in 19 days of trading since it started trading again. Needless to stay the stock is trading HIGH volume and is volatile. As recreational sales have just started and management is planing to expand its business further, more potential major news releases can be on the near-term horizon.
I bought a position into Friday Night Inc. very quickly because of the successes of the people who are behind Friday Night Inc. had with Supreme Pharmaceuticals and other cannabis companies. I saw they had businesses that were already licensed, making money by selling medical cannabis, CBD and topical products through its subsidiaries. When recreational cannabis was finally approved for sales in Nevada on July 1st, 2017, and Friday Night reporting record sales in the month of June, which was still pre-recreational, and with the initial sales already exceeding the government’s expectations, I am now more confident then ever about my investment.
With Friday Night Inc.’s management focused on building the business as quickly as possible, they could establish themselves as the leader in Nevada in the medical and recreational cannabis industry, with sites on expanding the business to other states and the world. At this point sky is the limit for Friday Night Inc. Obviously, I have already own a position in Friday Night Inc. so I am putting my money where my mouth is. We have all seen the kind of explosive profits that can be made by investing into cannabis stocks at the right time. Do your due diligence on Friday Night Inc., but I wanted to make sure you were aware of it since recreational sales just started a week ago. I am looking forward to watching this cannabis stock grow and and build its business which could mean a healthy return on my investment.
Feel free to visit their website to review the “Investors Presentation” and sign up to their news letter at the top right, you click on subscribe to sign up: www.fridaynightinc.com
Friday Night Inc. (CSE: TGIF, FRANKFURT: 1QF )
734, 1055 Dunsmuir St.
Canada V7X 1B1
Investor Relations: 604 674 4756
A former Mayor, Oscar Goodman, created the slogan,
“What happens in Vegas, stays in Vegas”
George Washington (first President of the United States from 1789–1797) quote on cannabis
“Make the most you can of the Indian Hemp seed and sow it everywhere.”
Thank you very spending the time to read my newsletter, if you have any question’s let me know.
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Full disclosure: Mr. Horsley owns 200,000 common shares Friday Night Inc. Mr. Horsley is CEO of Grand Lodge Capital and owner of Bull Market Letter, which was paid a fee to produce this newsletter. Mr. Horsley may sell or purchase more shares in this company at any time and without giving notice. The information received is for their personal use. Investing involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. Nothing contained herein should be construed as a warranty of investment results or advice. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. All information provided or contained in this communication should not be reproduced, copied, redistributed, transferred, or sold without the prior written consent of the sender. This communication including any information transmitted with it is intended only for the use of the addressees and is confidential. If you are not an intended recipient or responsible for delivering the message to an intended recipient, any review, disclosure, conversion to hard copy, dissemination, reproduction or other use of any part of this communication is strictly prohibited, as is the taking or omitting of any action in reliance upon this communication. If you receive this communication in error or without authorization please notify us immediately by return e-mail or otherwise and permanently delete the entire communication from any computer, disk drive, or other storage medium.