The Investment Industry Regulatory Organization of Canada (IIROC) recommends a “quiet period” after a company announces its intention to raise money. This reduces the possibility that private placement participants are gaining an unfair advantage.
On September 11, 2018 Friday Night (TGIF.C) was up 14% on 3 million shares by mid morning.
Usually when that happens, its relatively easy to identify the catalyst.
Bonanza drill results.
A key hire.
A buy-out of similar company etc.
In this case, there was no news.
In fact, Friday Night’s last news was published on August 31, 2018 when the company announced that it had filed and obtained a receipt for its final short form prospectus.
Friday Night is issuing Debenture Units at a price of $1,000 per unit for minimum gross proceeds of $7 million and maximum gross proceeds of $15 million.
Each Warrant will entitle the holder to purchase one Common Share at an exercise price of .65 per Share at any time up to 36 months following the closing date of the Offering.
TGIF intends to use the net proceeds for the expansion of its 91% owned subsidiaries, Alternative Medicine Association, LC and Infused MFG, LLC, into new markets in the United States and Canada, and for working capital and general corporate purposes.
A call to TGIF revealed two things:
- TGIF anticipates that the announced financing will close in the very near future.
- TGIF has been in a self-imposed “quiet period”.
An alert investor can reasonably anticipate that TGIF is about to become cashed-up and vocal – which makes now a potentially good time to buy stock.
According to TGIF’s corporate literature, it “owns and controls cannabis and hemp-based assets in Las Vegas Nevada as well as an international cannabis and mining security logistics consulting firm.”
Chris Parry’s September 4, 2018 viral article, “Canopy Growth Corp (WEED.T) has $5 billion to buy something: What’s on the list?” – identified TGIF as a potential target:
“Friday Night, under the helming of long time BC cannabis mover-shaker Brayden Sutton, has a serious mix of interesting pieces,” wrote Parry, “Any one of which could light up soon. They’re making a big play into hemp, they have a cavalcade of consumer products, they’re all over retail, they’re even pushing in on the logistics front.”
- First marijuana cultivator approved in Southern Nevada
- 17k sq. ft. of grow and processing space
- Pre-rolls with over 30% THC already on local shelves
- High quality extracts produced with custom equipment
- Only licensees can apply for recreational licenses, putting them in great shape going forward
- Brands include AMA, Kurupt’s Moonrock, Krypted, and Vader Extracts
And the kicker? REVENUE:
Alternative Medicine Association and Infused MFG reported combined sales in July of $1.6M CAD, a 362% increase over July 2017.
Assuming that doesn’t increase in months to come, you’re looking at $4.8m per quarter in revenue. And that’s before the big move into the hemp market, which Nevada is a perfect venue for.
Las Vegas is a sexy market. And not just because of the partying tourists. Amazon (AMZN.NASDAQ) has opened new headquarters bringing 3,000 new jobs. The $111 billion economy is booming.
We’ve been tracking TGIF’s revenue milestones since the middle of the summer.
With only two quarters reporting from 2018, TFIG’s revenue was already 530% higher than all of 2017.
This quiet money-making weed company – is going to make some noise.
Full Disclosure: TGIF is an Equity Guru marketing client, and we own stock.