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Friday Night receives conditional approval to grow recreational pot in Nevada

Last updated: 04:30 29 Jun 2017 AEST, First published: 23:30 28 Jun 2017 AEST

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Friday Night Inc is a cannabis focused company

Friday Night Inc (CNSX:TGIF) told investors it had received the conditional go-ahead to grow recreational cannabis in Nevada with effect from July 1.

The firm today gave an update on the current landscape in Clark county, Nevada, which is the home of Las Vegas - a prime target for the group.

The company has also submitted its business licence application and is waiting for an appointment with the zoning department in Clark county as the final step to receive its recreational permit, it said.

Earlier this month, a judge ruled that only alcohol distributors could be licensed to transport recreational marijuana and Nevada immediately approved the five alcohol distributors who had applied to transport the recreational marijuana.

Friday Night said: "Since they have not handled this specific product before, they are now scrambling to get their facilities and equipment qualified to be ready by July 1.

"There may be minor deficiencies in meeting the initial surge in demand for getting product from the cultivators to the dispensaries but it will be ironed out and the flow will be handled as it has in other states that have done similar."

However, Friday said it did not expect any problems or significant delays.

"The company continues to produce high-quality flower and extracts and looks forward to the projected increase in revenues from recreational sales."

Mark Zobrist, director of Friday's 91% subsidiary  Alternative Medicine Association (AMA), said: "This is a tremendous opportunity for the company.

"To be in Las Vegas and witness the beginning of adult use of cannabis, combined with the already strong demand for medicinal purposes, is very exciting.

"The local and state officials are to be congratulated for staying the course and doing it in a tightly regulated, professional manner."

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