Friday Night Inc
Cannabis

Friday Night Inc (OTCMKTS:TGIFF) Upward Momentum Gathers Pace

Friday Night Inc (OTCMKTS:TGIFF) is no longer a bear, as was the case in the first half of the year. The stock has bottomed out, after hitting the floor, in response to the overall cannabis sector turning bullish after one of the worst starts to a new year.

Friday Night Price Action

Shares of Friday Night are up by more than 40%, since the start of August, as the stock tries to recoup losses accrued in the first six months of the year. The bounce back of a high turnover in traded shares an indication that investors are increasingly buying into the company’s long-term prospects.

TGIFF Daily Chart

A closer look at the chart above, it is clear that the stock is trading above a key support level at the $0.40 mark. The stock needs to stabilize above the critical support level to affirm suggestions that a bear run that began at the start of the year has lost momentum.

Above the $0.40 mark, bulls remain well positioned to push the stock to the $$0.55 mark, seen as the next resistance level. A breach of the resistance level should open the door for Friday Night to surge back to the top at to the $1 a share mark.

Below the $0.40 mark, short sellers could push the stock to the $0.30 mark, seen as the next support level. A breach of the $0.30 mark could see short sellers regaining full control paving the way for the stock to drop to 52-week lows of $0.14.

If recent developments are anything to go by, then Friday Night could as well have hit rock bottom, from where it is set to climb higher as sentiments in the cannabis sector improve.

What Does Friday Night Do?

Friday Night Inc. is a life sciences company, specializing in the cultivation, production, and distribution of medical and recreational marijuana across North America. The company owns and controls cannabis hemp-based assets in Nevada. It also owns an international cannabis and mining security logistics consulting firm.

Record Sales

Friday Night ink is back to winning ways after coming under pressure from short sellers. The stock has bounced back from the $0.27 mark as the upward momentum continues to gain pace.

The catalyst behind the recent bullish run is the announcement that the company achieved record sales for its Nevada operations. Reports indicate that the company’s two wholly owned subsidiaries Alternative Medicine Association and Infused MFG generated sales of $1.6 million representing a 362% year over year increase for the month of July

The record sales coincided with the company’s one year anniversary as a public entity.

“The increased sales of both medicinal and adult-use cannabis and CBD products are a result of improving efficiencies and processes in our current facilities while we await completion of our expansion projects,” said Mr. Chris Rebentisch, Head of US Operations and Founder of Infused.

Buoyed by the performance, the management has set sights on increasing the company’s footprint in a bid to address the growing demand for cannabis products in Nevada. Friday Night Inc. is also planning to expand its product line in a bid to diversify its streams of revenues when it comes to product sales.

Hemp Processing Facility Approval

Confirmation that the company has received a permit for a hemp processing facility in Las Vegas Nevada has also gone well with investors, helping fuel the upward momentum. The company has received an Industrial Hemp Handler Conditioner Certificate that allows it to move forward with the CBD Isolate Lab.

The company’s newly acquired building in Las Vegas is to house the isolate lab that will process hemp biomass into CBD extracts to be used for the production of oils, distillates as well as isolates.

“Obtaining the Industrial Hemp Handler Certificate is an important milestone in the process of establishing the CBD Isolate Lab, which we expect to be operational this fall. Wholesale hemp-derived CBD extracts is an exciting new business vertical with significant revenue potential,” said Mr. Rebentisch.

What Next For Friday Night Inc.

There is no doubt that short sellers pushed Friday Night to levels that raise serious concerns about its long-term prospects. However, the fact that the stock has bounced back at the back of solid fundamentals provides insight on how it is likely to trade on positive developments going forward.

With a sell-off wave that had gripped the industry losing momentum, now may be the best time to get involved in the stock as there is a lot of room to run on the upside. The upward momentum gaining pace is a testament that buyers are slowly winning the battle against the bears, pointing to further movements on the upside.

We will be updating our subscribers as soon as we know more. For the latest updates on TGIF, sign up below!

Disclosure: We have no position in TGIFF and have not been compensated for this article.

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Friday Night Inc (OTCMKTS:TGIFF) Upward Momentum Gathers Pace
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