FRIDAY NIGHT INC COM NPV VPGDF TGIF, a Nevada-based marijuana company, recently announced it had entered into a non-binding letter of intent with SuicideGirls Cannabis. As per the LOI, Friday Night will sell SuicideGirls’ products in Nevada, which started with adult-use cannabis sales just a few weeks ago, witnessing unprecedented demand.
Why It Matters
SuicideGirls Cannabis is one of the most popular weed-product brands in California, and its parent company, SuicideGirls, the largest alternative community on the internet, boasting millions of followers on Facebook Inc FB, Instragram and Twitter Inc TWTR.
Related Link: Why Industrial Hemp Could Prove A Larger Economic Driver Than Marijuana
For their part, Friday Night and its majority-owned subsidiary Alternative Medicine Association, LC, are among the top marijuana companies in Nevada. In addition, Friday Night’s CEO Brayden Sutton is one of the most seasoned cannabis executives and analysts in the world, with experience at industry darlings including SUPREME PHARMACEUT COM NPV SPRWF FIRE and AURORA CANNABIS IN COM NPV ACBFF ACB, among others.
Interested in this potential power-couple, Benzinga decided to reach out to the companies to get more details about the transaction and the market potential.
The ‘Deats’
According to Sutton, the final details of the deal are being still worked out. However, it looks like SuicideGirls Cannabis has selected AMA to be its exclusive distributor in Nevada. SuicideGirls will be in charge of promoting the brand and providing the product – cannabis vaporizer cartridges, while AMA will take on distribution and actual production of liquids used in the cartridges – since cannabis products and derivatives cannot cross state lines due to federal regulations.
Related Link: How Public Relations Firms Are Capitalizing On The Marijuana Green Rush
As per the LOI, Friday Night will give SuicideGirls a 15 percent production royalty on gross sales and will issue 1 million common shares that will be granted to the latter. In exchange, the former will acquire exclusive manufacturing and distribution rights in Nevada, plus the option to do the same in the Canadian Provinces of British Columbia and Alberta, when the country’s laws allow for it, upon the issuance of an extra 500,000 common shares. Further provisions of the agreement can be found here.
“Given SuicideGirls’ strong social media presence, exposure for Friday Night and AMA will be tremendous,” Sutton told Benzinga.
“We are excited to expand upon the success we have had in California, bringing the SG Vapes to the Nevada recreational cannabis market,” SuicideGirls co-founder Missy Suicide, added.
Friday Night is in the midst of a $7 million capital raise. “100 percent of those proceeds will be used for expansion,” Sutton said, adding that the plan is to move to a cultivation facility that is four or five times larger than the current one they have, in terms of production capacity. The CEO expects that, with this expansion, the company’s top line will jump from roughly $3 million to about $20 million per year.
When prompted about expansion into other states and countries, Sutton answered: “We have been looking into options but I don’t want to get too ahead of myself. We are making very good money in Nevada right now, so the primary focus is this state.”
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Image Credit: Javier Hasse
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