Las-Vegas focused recreational cannabis group Friday Night Inc (CNSX:TGIF) got a further boost - inking a production deal with a major dispensary chain in Nevada.
The chain will supply trim as a raw material to the group's production subsidiary AMA, who will extract and process the materials into high grade concentrates.
Trim is defined as the excess snipping of leaves from the buds of marijuana plants and the dispensary will provide a minimum of 100 pounds per month.
AMA estimates it will then produce over 20,000 half-gram units every month.
"We have the lab and the expertise, so this agreement fits our business operations perfectly in an environment where raw material is in short supply," said AMA’s head of extraction.
"The first batch of raw material (trim) has been delivered to AMA, weighed more than 150 pounds and tested showing excellent results."
Recently formed - Friday Night revealed last week that it posted around US$1mln of revenue and gross profit of $230,714 in the last six weeks of the fourth quarter in its year to July 31.
It said it's now building on these numbers and will announce first quarter results in December (this month).
In June this year, the firm announced the purchase of a 91% stake in Alternate Medicine Association (AMA), a licensed medical marijuana producer - the second firm to get such a licence in Nevada and the very first in Vegas.
It also acquired a 91% stake in Infused Mfg - a company that provides hemp-derived and cannabidiol (or CBD) products.
Shares were unchanged at C$0.44 each.