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Friday Night poised to buy cannabis grower Body & Mind in C$115mln deal

BAM produces flower, oil extracts and edibles at its current facility, Friday Night said.
Friday Night poised to buy cannabis grower Body & Mind in C$115mln deal
With around 130,000 square feet of facility projects under development, the deal will make the merged company among the largest growers in Nevada

Friday Night Inc  (CNSX: TGIF) is set to buy cannabis grower Body & Mind Inc (BAM) in a game-changing all share deal worth C$115mln, which will make the merged company among the largest cultivation and production companies in the US state of Nevada, sending shares soaring again.

The deal is expected to be immediately cash flow accretive to Friday Night.

READ - Friday Night shares flying as it posts first quarter results

BAM was awarded one of the first Nevada state medical marijuana licenses for both cultivation and production.

It produces flower, oil extracts and edibles at its current facility and expects within the latter part of 2018 to be in facilities providing around 50,000 square feet.

With around 130,000 square feet of facility projects under development, the deal will make the merged company among the largest growers in Nevada.

"This transaction helps advance Friday Night into a leading position in what many believe is one of the best cannabis markets in the world, said Brayden Sutton, Friday Night Inc's chief executive.

"We welcome the Body & Mind shareholders and staff to the Friday Night family and are excited about having Robert Hasman head up the expanded organization as president."

Hasman, BAM president, added: "This is a meaningful win for our stakeholders but is only the beginning of consolidation here in Nevada.

"The financial strength of a combined entity will enable us to continue to do more transactions at a rapid pace with the ultimate goal of driving down costs, expanding product lines, and servicing our customers."

READ - Friday Night expands brand into California

Friday Night is going from strength to strength.

Yesterday, it saw  shares race up on the back of its first quarter results, which showed the strength of the market it is tapping into.

Gross revenue for the three months to end October was around C$2.5mln, with gross profit at around C$1.33mln.

The group had cash at the end of the period of C$5.6mln.

"These results prove how large our footprint is becoming and attest to how healthy the market is in Nevada," Sutton told investors.

Shares in Toronto zoomed up 37% to C$1.37 each on Thursday, having surged 30% on Wednesday.

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