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Friday Night advances as it unveils plans to spin out Infused MFG

The deal would see an exchange of the minority interest in AMA for an interest in Infused MFG
Friday Night advances as it unveils plans to spin out Infused MFG
Friday Night is expanding in the Nevada recreational cannabis market

Shares in recreational cannabis focused group Friday Night Inc (CNSX: TGIF) advanced on Monday as it updated on its Body and Mind Inc acquisition and unveiled a plan to spin out Infused Mfg.

Infused is a Nevada-based firm that provides legal hemp-derived and cannabidiol (or CBD) products, and Friday Night bought a 91% stake last year.

Friday Night said it had struck an agreement in principle with the holder of the 9% interest of Infused and its other subsidiary  Alternate Medicine Association (AMA).

The deal would see an exchange of the minority interest in AMA for an interest in Infused MFG, which would then be spun out as a separate publicly traded company.

Friday Night reckons Infused MFG and its Canna Hemp brand has been successfully built and the "time is right" for a separate management team to expand on its success.

Also, it could thrive on its CBD products alone, so its spin out gets rid of any volatility associated with USA cannabis based businesses. currently.

Friday Night shareholders will receive one Infused share for each four TGIF shares they own.

In addition, TGIF has agreed to back an initial private placing, so the new company has sufficient cash to both expand and to make strategic acquisitions when available.

Last month, Friday Night said  it would buy cannabis grower Body & Mind Inc (BAM) in an 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.

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

Today, the firm said both firms expect to strike a definitive agreement imminently and after negotiations, the implied value of the BAM shares has now been adjusted to an implied value of $1.65 per share or a ratio of 1.65:1 for each BAM share held.

The deal remains subject to the approval of BAM shareholders, among others.

Friday Night shares added 6.38% in Toronto to C$1.

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