Friday Night Inc, formerly QuikFlo Health Inc. announces name change, share consolidation, closing of acquisition of Las Vegas medical marijuana interests, private placement closing and management changes
Friday Night Inc, formerly QuikFlo Health Inc. (the “Company“) (CSE:TGIF) (FRANKFURT:1QF) announces that in conjunction with the closing of its previously announced acquisition of interests in two cannabis based businesses located in Las Vegas, Nevada, it has changed its name to Friday Night Inc. and consolidated its shares on a two old for one new basis.
The Company closed its acquisitions of 91% of two Las Vegas based companies – Alternate Medicine Association LC (“AMA”) is a licensed medical marijuana producer in Nevada and the other, Infused Mfg., LLC is a company that provides hemp based and CBD infused products. The Company issued a total of 32,750,00 (post-consolidation) common shares and paid US$ 3.4 million in cash, while assuming approximately US$ 1.59 million in debt in respect to these acquisitions.
AMA was the first medical marijuana business licensed in Las Vegas, has current sales of approximately US$ 200,000 per month, and holds both its cultivation and production licenses. Nevada has approved recreational cannabis use, with recreational licenses planned to be issued later this year. Under the current rules, only licensed medical cannabis producers can currently apply for recreational licenses.
The Infused products company has developed several products using hemp and CBD infusions, and prepared mixes to which THC can be added by State legal facilities and has achieved growing sales to date.
The Company closed the fourth and final closing of its previously announced non-brokered private placement. The Company issued, on a post consolidation basis, 4,411,203 units at a price of $0.15 per unit, with each unit consisting of one common share and one half of a share purchase warrant entitling the holder to purchase one additional common share for $0.30 for a period of 2 years from closing. The proceeds of $ 6,616,680.45 will be used for working capital and as well as to fund the acquisitions noted above. Securities issued pursuant to this fourth closing are subject to trading restrictions until October 15, 2017.
The shares of the Company are expected to start trading on the Canadian Securities Exchange on Friday, June 16, 2017 under the symbol “TGIF”.
In conjunction with the acquisitions, Brayden R. Sutton has become the Chief Executive Officer of the Company, as well as being named to the board of directors. Mr. Sutton brings a successful track record of managing a diverse portfolio of investments through his wholly owned merchant bank. His sectors of specialization over the past 14 years include technology, media and personal health. Mr. Sutton served as the Executive Vice President for Supreme Pharmaceuticals Inc. (FIRE.V) and his expertise within the legal Cannabis sector has resulted in additional Executive positions, with both public and private companies, at the leading edge of the emerging cannabis industry, including Invictus MD (IMH.V), Aurora Cannabis (ACB.V) and CannaRoyalty (CRZ.C).
Brian Keane of New York, NY has also joined the board. The Company wishes to thank George Tsafalas and David Lane for their service.
Mr. Keane has over 18 years of capital markets, investing and C-level consulting experience in over 100 emerging growth companies in the US, Canada, Caribbean and Asia, transacting over $2 billion in deal value. His previous Wall Street experience includes: Rodman & Renshaw, LLC, Ladenburg Thalmann & Co, TechVest, & Qualified Capital where he focused on life science, biotech, mining and emerging growth companies. He earned a BS from University of Scranton and a JD from New York Law School.
Brayden Sutton, CEO of the Company said “We are excited to enter into one of the most highly anticipated new markets in this sector. With a proven corporate team and some of the best operators in the space running the facilities, the Company is perfectly positioned as a first mover in Clark County. I could not be more pleased with how far we’ve come and with the opportunities that lie ahead for TGIF shareholders.”
The Company currently has 143,249,666 common shares issued and outstanding. There are also 12,900,000 warrants outstanding, exercisable at $0.10 for a period of one year, and 17,879,837 warrants outstanding, exercisable at $0.30 for a period of one year. Both sets of warrants contain a forced conversion provision that if the shares of the Company trade at $0.50 or more for a period of 10 trading days, the Company has the option to accelerate the expiry date to no less than 30 days from a press release advising of the same. The Company also has 17,507,500 incentive options issued to officers, directors, employees and consultants, 17,170,000 of which are exercisable at $0,15, and the balance of 337,500 exercisable at an average cost of $0.46. A total of 31,924,200 common shares are subject to escrow conditions, releasable over the next 3 years.
For further information relating to this, please contact Brayden Sutton, President of the Company at 604-428-0511 or firstname.lastname@example.org.
Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. This news release includes forward-looking statements with respect to the regulatory approval in respect to the acquisition of new businesses and raising funds. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company’s disclosure documents which can be found under the Company’s profile on www.sedar.com. Such risk factors may cause the inability of the Company to successfully commercialize any of its biomedical technologies.