Putting shareholders first is Friday Night Inc. (CNSX:TGIF), the best-named company in the pot business today, who announced on Wednesday the termination of their letter of agreement with Body and Mind Inc. (CSE:BAMM) (OTCPINK:BMMJ). The deal, which ended by mutual understanding was to have seen Friday Night acquire Body and Mind through an all-stock transaction. According to a statement, the two parties agreed that under current market conditions, the deal was no longer beneficial to wither parties’ shareholders.
It was only two months ago that both companies were touting the deal as creating one of the largest cultivation companies in Nevada. At the time, the purchase price represented a 50 percent over Body and Minds then closing price, albeit on a fully-diluted basis. The two companies also expected their per unit costs to become among the lowest in Nevada on a per unit scale.
“Recent market events out of our control turned the BAM acquisition into a moving target,” stated Friday Night CEO Brayden Sutton in a statement regarding the deal’s termination. “To keep renegotiating terms and delaying the closing date is not fair to shareholders on either side, all the while both companies may be missing other opportunities.”
Body and Mind produces flower, oil extracts and edibles and had earlier established plans to manage operations in facilities of around 50,000 square feet. “Market conditions and the revised consideration proposal to our shareholders played a role in the decision to mutually terminate the proposed amalgamation plan,” commented Body and Mind Inc. CEO Leonard Clough on the fallen deal.
Friday Night Inc. fell $0.03 per share on Wednesday, a decline of 4.41 percent, to close out the day at $0.65 per share. Meanwhile, Body and Mind fell $0.10 per share in trading. It was a 12.50 percent loss to close out the trading day at $0.70 per share.