SEATTLE, April 04, 2018 (GLOBE NEWSWIRE) -- CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article discussing Friday Night Inc.'s (CSE:TGIF) (CNSX:TGIF) (TGIF.CN) (OTCQB:TGIFF) recently reported financial results and the implications of the company’s revenue growth.

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.

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.

Please follow the link to read the full article: http://www.cannabisfn.com/friday-night-reports-strong-revenue-growth-path-profitability/

For more information, visit the company’s website or download their investor presentation.

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