VANCOUVER, BC (FSCwire) - Friday Night Inc. (Friday Night) (CSE: TGIF) (FWB: 1QF) (OTCQB: TGIFF) is pleased to announce an update to the terms of the Body and Mind letter of intent, and announce a proposed spin out plan for Infused MFG.
Body and Mind LOI
As a result of the negotiations between the parties in respect to the letter of intent (“LOI”) signed with Body and Mind Inc. (“BAM”), the implied value of the BAM shares has been adjusted to an implied value of $1.65 per share or a ratio of 1.65:1 for each BAM share held. Holders of convertible BAM securities will see their options and warrants converted to Friday Night securities with similar terms after taking into account the exchange ratio. The board and management of BAM remains supportive of the transaction notwithstanding the exchange adjustment. The parties anticipate entering into a definitive agreement imminently. The transaction remains subject to BAM shareholder approval and any required regulatory or exchange approvals.
Friday Night is also pleased to announce it has reached an agreement in principle with the holder of the 9% interest of its operating subsidiaries in Nevada, AMA and Infused, to acquire the same. The proposed transaction contemplates the exchange of the minority interest in AMA for an interest in Infused MFG., followed by the spin-out of Infused MFG. as a separate publicly traded company. This spin-out would be completed prior to the close of the BAM transaction.
Subject to regulatory approvals and advice from corporate advisors, each Friday Night shareholder will receive 1 Infused MFG. share for each 4 Friday Night shares held. Friday Night has agreed to backstop an initial private placement, so the new company has sufficient cash reserves to both expand and to make strategic acquisitions when available. Final details will be announced when available.
The Company feels that Infused MFG. and their Canna Hemp brand has been successful in building its business and the time is right for a separate management team to expand on its success.
It is a business that could thrive in CBD products alone, so its spin out into a separate company will eliminate for it some of the volatility associated with USA Cannabis based businesses.
About Friday Night Inc.
Friday Night Inc. is a Canadian public company, which owns and controls cannabis and hemp based assets in Las Vegas Nevada. The company owns 91% of Alternative Medicine Association, LC (AMA), a licensed medical and adult-use cannabis cultivation and production facility that produces its own line of unique cannabis-based products and manufactures other third-party brands. Infused MFG, also a 91% owned subsidiary, produces hemp-based, CBD products, thoughtfully crafted of high quality organic botanical ingredients. Friday Night Inc. is focused on strengthening and expanding these operations within and outside of the state.
For further information please contact:
Joe Bleackley, Corporate Communications
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents, which can be found under the Company's profile on www.sedar.com. Friday Night undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law or the Canadian Securities Exchange.
Source: Friday Night Inc (CSE:TGIF, OTCQB:TGIFF, FWB:1QF)
Maximum News Dissemination by FSCwire. https://www.fscwire.com
Copyright © 2018 FSCwire
News Provided by FSCwire via QuoteMedia