FRIDAY NIGHT INC (OTCMKTS:TGIFF) Making Big Moves

FRIDAY NIGHT INC (OTCMKTS:TGIFF) has been the recipient of a high valuation since November.During this period, their share price has undergone a bullish run that has seen it move from lows of $.14 in October to highs of $1.25 in December. Currently, the company’s share price is trading at $1.04, still over seven times their initial share price.Take a look at this price action below: TGIFF Daily ChartWith such a high valuation, the market has been startled. This has led both the market and us to take a closer look at their projects so as to assess their value proposition and understand its implications for their valuation in the long run.The History of Friday Night Before going deep into the intricacies, let us first take a look at the trajectory that TGIFF has followed to date.Friday Night Inc was incorporated in Canada back in 2008. They currently own and control cannabis and hemp-based assets in Las Vegas, Nevada as well as 91% of Alternative Medical Association (which is a licensed medical and adult-use cannabis cultivation and production facility) as well as 91% of Infused MFG which engages in the production of hemp-based, CBD products. Through this, the company is working at ensuring they are strong players within that space.Currently, they are focused on strengthening and expanding their operations both within and outside of the state of Nevada.Recent DevelopmentsThe company’s success during the December period begun when they were allowed to graduate to OTCQB. The development was meant to increase the awareness of the company within the US market. With their listing on this exchange, their ability to raise capital as well as graduate to other larger exchanges is now made easier. Furthermore, their shareholders can now benefit from the easier liquidation of their shares as they can easily sell them in the market.With the above in place, the company could now focus on its expansionary strategy as they work towards industrial domination.A few days later, they began rolling out their plans to grow into the different markets through their announcement that they would expand their brand into the California CBD market. The state promises significant benefits as the cannabis industry is valued at $2.6 billion, an amount TGIFF hopes to tap into soon into the future.This would be achieved through the sale of their Canna Hemp product line within the State of California. With the state being home to 40 million people and receiving over 165 million visitors, the market size was a strong driver of their decision to venture into this market.Finally, they made one final move. This has been a strong value driver for them and has been taken as a reason for their high valuation.The AcquisitionFriday Night Inc has finally gotten into a transaction with Body & Mind Inc. On December 21^st, Friday Night Inc released a letter of intent to acquire the company through an amalgamation transaction.The amalgamation transaction that has been valued at $115 million Canadian dollars is a significant move by TGIFF which will have immediate positive implications for them.Some of these implications include an immediate accretion of their cash flows, the elevation of their 130,000 square-foot facility which is still under development to one of the largest in the country as well as the reduction of their operating expenses per unit to among the lowest in Nevada courtesy of the economies of scale the move presents.Moreover, the company would benefit from increased volumes that arise from the increased facility size. Through this, they will better serve the market through consistency of output thus higher revenue from the same.With the above in play, TGIFF CEO, Brayden Sutton spoke during the announcement stating that:

"This transaction helps advance Friday Night into a leading position in what many believe is one of the best cannabis markets in the world. 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."

Source:With the above relationship, TGIFF expects to grow their position within the industry. furthermore, through the relationships they are expected to foster as well as the synergy they currently have, a lot is expected of TGIFF and their share price doesn’t seem to be heading any other way but up.Financial Performance The company has not been making revenues in the past thus has been in a loss position. However, this changed in the third quarter of 2017 when they recorded over $2.4 million in consolidated revenues. However, their loss position still stood at $599,582 which was still a high from their previous loss position of $1.6 million in the previous quarter.The quarter also saw their working capital position turn to a surplus to close the quarter just shy of $2 million, up from a deficit.With this announcement, the company share price surged. They do not expect to fall back to their previous ‘revenue-less’ position and going forward, are banking on the deals they have made to ensure that they will never again be out of the money.ConclusionTGIFF is on an upward trend, both in terms of operations and financially. A lot has been done to ensure they get here and this seems to be paying off for them. The future is bright for them.We will be updating our subscribers as soon as we know more. For the latest updates on TGIFF, sign up below!Disclosure: We have no position in TGIFF and have not been compensated for this article.Image courtesy of Jonathan Gross via Flickr