August 16th, 2017
Friday Night Inc. Announces Closing of Brokered Private Placement of Convertible Debenture Units
We are pleased to announce that we have closed our previously announced (July 10, 2017) private placement of $5,500,000 aggregate principal amount of convertible debenture units (the “Convertible Debenture Units”) at a price of $1,000 per Convertible Debenture Unit. Each Convertible Debenture Unit consists of a $1,000 principal amount 10% senior unsecured convertible debenture (each a “Convertible Debenture”) and 4,000 common share purchase warrants (the “Warrants”) of the Company (the “Offering”). Each Warrant is exercisable to acquire one common share of the Company (a "Warrant Share") at an exercise price of $0.35 per Warrant Share until August 16, 2019, provided that if, at any time after December 17, 2017 and prior to the expiry date of the Warrants, the volume weighted average trading price of the common shares of the Company (the "Common Shares") equals or exceeds $0.70 for 10 consecutive trading days, the Company may, within 30 days of the occurrence of such event, deliver a notice to the holders of the Warrants accelerating the expiry date of the Warrants to the date that is 30 days following the date of such notice. Any unexercised Warrants shall automatically expire at the end of the accelerated exercise period.
The Convertible Debentures bear interest from the date of closing at 10.0% per annum, payable in common shares of the Company at a deemed price of $0.25 (subject to withholdings for non-residents), semi-annually on June 30 and December 31 of each year and will expire on August 16, 2019 (the “Maturity Date”). The Debentures are convertible into Common Shares ("Debenture Shares") at the option of the holder at any time prior to the close of business on the earlier of: (i) the last business day immediately preceding the Maturity Date; and (ii) the date fixed for redemption, at a conversion price of $0.25 per Common Share (the "Conversion Price"), subject to adjustment in certain events. Additionally, beginning on December 17, 2017, the Company may force the conversion of all of the principal amount of the then outstanding Convertible Debentures at the Conversion Price on 30 days prior written notice should the daily volume weighted average trading price of the Common Shares be greater than $0.45 for any 10 consecutive trading days. The Convertible Debentures will be subject to redemption, in whole or in part, by the Company at any time after August 16, 2018 upon giving holders not less than 30 and not more than 60 days’ prior written notice, at a price equal to the then outstanding principal amount of the Convertible Debentures plus all accrued and unpaid interest up to and including the redemption date.
The Company intends to use the net proceeds of the Offering for expanding its growing operations in Las Vegas, Nevada and for general corporate purposes.
Canaccord Genuity Corp. (the "Agent") acted as sole lead manager and sole book runner for the Offering. The Company paid the Agent a cash fee of $395,800 and issued 200 Convertible Debenture Units (the "Agent's Units"), in payment of the Agent's commission, corporate finance fee and expenses. In addition, the Agent received an option (the "Agent's Option") to acquire 2,155,200 units of the Company ("Units") at an exercise price of $0.25 per unit. Each Unit is comprised of one Common Share (each a "Unit Share") and one common shares purchase warrant (each a "Unit Warrant"), exercisable for one Unit Share at a price of $0.35 per Unit Share (the "Unit Warrant Shares"), subject to the same terms and conditions as the Warrants. The securities issued pursuant to the Offering (including the Convertible Debentures, the Warrants, the Agent's Units and the underlying Convertible Debentures and Warrants, the Agent's Option and the underlying Unit Shares, Unit Warrants and Unit Warrant Shares) are all subject to a hold period under applicable Canadian securities laws of four months and a day, which will expire on December 17, 2017.
Mr. Brayden Sutton, CEO of the Company commented,
"This placement allows us to aggressively implement our plans to increase our production capacity in Las Vegas. Management of the Company believes that there is an unmet market for our products that we can fill as soon as we can increase production. AMA and Infused continue to shine and I am beyond pleased with how things are shaping up for the next several quarters and beyond.”
For more information, please contact:
Joe Bleackley
604-674-4756
Joe@FridayNightInc.com
Subscribe
Twitter
Instagram
Facebook
Website
CSE: TGIF
Copyright © Friday Night Inc. All rights reserved.
734, 1055 Dunsmuir St.
Vancouver, B.C.,
Canada V7X 1B1
