Friday Night Inc (CNSX:TGIF) has increased its cannabis footprint in the state of Nevada and boosted profit and revenue potential at the same time.
Its production subsidiary Alternative Medicine Association (AMA) has struck a deal to provide cultivation services to another Nevada-licensed facility owned by Harvest Foundation.
The facility is already under AMA's management and lied adjacent to the company's current cultivation facility.
"We have been preparing for this agreement which will now allow both companies to significantly advance their respective business plans in the area.
"It will effectively double the canopy space under our control and greatly increase the quantity of our extracts and oil production to supply a growing market," said Mark Zobrist, manager of Alternative Medicine.
Under the deal, AMA will now grow its own proprietary, high-yield strains in the Harvest Foundation facility.
This will provide additional pounds of flower and trim to Alternative Medicine, and will provide Harvest Foundation the most economical means of meeting market demand for its products.
Management believes this agreement will effectively boost revenues and profits for each company.
"We are excited to work with the Harvest Foundation management to achieve the goal of consistent, high-quality harvests from their licensed facility," said Ben Horner, director of operations at AMA.
"We have already populated all their grow rooms with beautiful, mature plants ready to enter the flower stage. We expect our first harvest to be in late December of this year."
It's a bust period for the firm.
Last week, it received the green light from Clark County, the home of Las Vegas, to grow cannabis on its new commercial property.
The approval was received on the land use application at a Clark County commissioners hearing on November 8.
"Shortly after the land purchase agreement is closed, the design team will finalize the building plans and commence construction," the firm said.
Friday Night Inc shares closed Friday up 10.64% to C$0.26 and raced up today in Toronto over 32% to C$0.34.