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4Front Ventures Retains Canaccord Genuity to Optimize Capital Structure and Announces Amendment of Credit Facility and Issuance of Restricted Stock Units

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4Front Ventures Corp. (CSE: FFNT) (OTCQB: FFNTF) has retained Canaccord Genuity Corp. to optimize its capital structure, focusing on refinancing existing debt and raising growth capital. The company also announced an amendment to its senior secured credit facility with ALT Debt II, LP, an affiliate of Altmore Capital. Key points include:

1. Lender advanced approximately $850,000 to the company
2. Additional $1.75 million available at lender's discretion
3. Interest rate: greater of WSJ Prime Rate plus 10% or 18.5%
4. Issuance of 49,957,714 Restricted Share Units (RSUs) to the lender

The company aims to align capital and operational partners with its long-term financial success, particularly as it scales its Matteson facility and expands Mission retail footprint in Illinois.

4Front Ventures Corp. (CSE: FFNT) (OTCQB: FFNTF) ha affidato a Canaccord Genuity Corp. l'incarico di ottimizzare la sua struttura di capitale, concentrandosi su rifinanziamento del debito esistente e raccolta di capitale per la crescita. L'azienda ha anche annunciato un emendamento alla sua linea di credito senior garantita con ALT Debt II, LP, un affiliate di Altmore Capital. I punti chiave includono:

1. Il prestatore ha anticipato circa $850.000 all'azienda
2. Ulteriori $1,75 milioni disponibili a discrezione del prestatore
3. Tasso d'interesse: maggiore tra il WSJ Prime Rate più 10% o 18,5%
4. Emissione di 49.957.714 Restricted Share Units (RSUs) al prestatore

L'azienda mira a allineare i partner di capitale e operativi con il suo successo finanziario a lungo termine, in particolare mentre amplia la sua struttura a Matteson e espande la sua presenza al dettaglio Mission in Illinois.

4Front Ventures Corp. (CSE: FFNT) (OTCQB: FFNTF) ha contratado a Canaccord Genuity Corp. para optimizar su estructura de capital, enfocándose en refinanciar la deuda existente y captar capital para el crecimiento. La empresa también anunció una enmienda a su línea de crédito senior garantizada con ALT Debt II, LP, una afiliada de Altmore Capital. Los puntos clave incluyen:

1. El prestamista avanzó aproximadamente $850,000 a la empresa
2. Un adicional de $1.75 millones disponible a discreción del prestamista
3. Tasa de interés: el mayor entre la WSJ Prime Rate más 10% o 18.5%
4. Emisión de 49,957,714 Unidades de Acción Restringida (RSUs) al prestamista

La empresa tiene como objetivo alinear a los socios de capital y operativos con su éxito financiero a largo plazo, especialmente a medida que amplía su instalación en Matteson y expande su presencia minorista Mission en Illinois.

4Front Ventures Corp. (CSE: FFNT) (OTCQB: FFNTF)는 Canaccord Genuity Corp.를 고용하여 자본 구조를 최적화하며 기존 부채 재조정 및 성장 자본 유치에 집중하고 있습니다. 또한 회사는 ALT Debt II, LP와의 주요 담보 대출 약정 수정을 발표했습니다. 주요 사항은 다음과 같습니다:

1. 대출자가 회사에 약 $850,000를 선지급함
2. 대출자의 재량에 따라 추가 $1.75 백만 가능
3. 이자율: WSJ 프라임 금리 + 10% 또는 18.5% 중 높은 금리
4. 대출자에게 49,957,714 제한 주식 단위(RSUs) 발행

회사는 Matteson 시설을 확장하고 Illinois에서 Mission 소매 네트워크를 확대함에 따라 장기적인 재정 성공을 위해 자본 및 운영 파트너와 일치하는 것을 목표로 하고 있습니다.

4Front Ventures Corp. (CSE: FFNT) (OTCQB: FFNTF) a retenu Canaccord Genuity Corp. pour optimiser sa structure de capital, se concentrant sur le refinancement de la dette existante et la collecte de capital pour la croissance. La société a également annoncé un avenant à sa facilité de crédit senior sécurisée avec ALT Debt II, LP, une filiale d'Altmore Capital. Les points clés incluent :

1. Le prêteur a avancé environ $850,000 à l'entreprise
2. $1,75 million supplémentaires disponibles à la discrétion du prêteur
3. Taux d'intérêt : le plus élevé entre le WSJ Prime Rate plus 10 % ou 18,5 %
4. Émission de 49,957,714 unités d'actions restreintes (RSUs) au prêteur

La société vise à aligner les partenaires de capital et opérationnels avec son succès financier à long terme, en particulier alors qu'elle élargit son établissement à Matteson et étend son empreinte de vente au détail Mission dans l'Illinois.

4Front Ventures Corp. (CSE: FFNT) (OTCQB: FFNTF) hat Canaccord Genuity Corp. beauftragt, um seine Kapitalstruktur zu optimieren, mit dem Fokus auf Umschuldung bestehender Schulden und Beschaffung von Wachstumskapital. Das Unternehmen gab auch eine Änderung seiner vorrangigen gesicherten Kreditfazilität mit ALT Debt II, LP, einer Tochtergesellschaft von Altmore Capital, bekannt. Die wichtigsten Punkte sind:

1. Der Kreditgeber hat der Gesellschaft etwa $850.000 zur Verfügung gestellt
2. Zusätzliche $1,75 Millionen nach Ermessen des Kreditgebers verfügbar
3. Zinssatz: der höhere Wert von WSJ Prime Rate plus 10% oder 18,5%
4. Ausgabe von 49.957.714 Restricted Share Units (RSUs) an den Kreditgeber

Das Unternehmen zielt darauf ab, Kapital- und Betriebspartner mit seinem langfristigen finanziellen Erfolg in Einklang zu bringen, insbesondere während es seine Einrichtung in Matteson ausbaut und die Einzelhandelspräsenz von Mission in Illinois erweitert.

Positive
  • Retention of Canaccord Genuity to optimize capital structure and explore refinancing opportunities
  • Access to additional $850,000 in funding through credit facility amendment
  • Potential for $1.75 million more funding at lender's discretion
  • Expansion of Matteson facility and Mission retail footprint in Illinois
Negative
  • High interest rate on credit facility (greater of WSJ Prime Rate plus 10% or 18.5%)
  • Issuance of 49,957,714 RSUs may lead to potential shareholder dilution
  • Additional fees (paid-in-full fee and exit fee) payable at maturity of credit facility

PHOENIX, Ariz., Sept. 25, 2024 /PRNewswire/ - 4Front Ventures Corp. (CSE: FFNT) (OTCQB: FFNTF) ("4Front" or the "Company"), a vertically integrated, multi-state cannabis operator and retailer, today announced that it has retained Canaccord Genuity Corp. ("Canaccord Genuity") to lead its ongoing efforts to consolidate and streamline its capital structure. The immediate focus will be on exploring opportunities for refinancing existing debt and raising fresh growth capital, while also considering a full range of operational and strategic alternatives, with the ultimate objective to align all capital and operational partners with the long-term financial success of the Company.

Andrew Thut, Chief Executive Officer of 4Front, said, "We're at a pivotal moment as we begin to scale our flagship Matteson facility and expand our Mission retail footprint in Illinois. Partnering with Canaccord Genuity will help us secure the necessary growth capital, streamline our balance sheet, and position the Company for substantial and sustainable cashflow generation and shareholder value creation."

In addition to the retention of Canaccord Genuity, the Company has agreed to a modification (the "Amendment") of its senior secured credit facility (the "Credit Facility") previously announced on October 16, 2023 with ALT Debt II, LP, an affiliate of Altmore Capital (the "Lender").  As part of the Amendment, the Lender has advanced approximately $850,000 to the Company. An additional $1.75 million remains available to the Company at the discretion of the Lender. The outstanding principal of the Credit Facility will bear simple interest at a rate per annum equal to the greater of (i) the WSJ Prime Rate plus 10% and (ii) 18.5%, payable monthly; and the Amendment includes a paid-in-full fee provision, in addition to the existing exit fee, payable at maturity. Full details of the transaction are in the Company's filings.

In connection with the Amendment, the Company intends to enter into a restricted stock unit agreement (the "RSU Agreement") pursuant to which the Company will double the percentage of Restricted Share Units ("RSUs") previously issued to the Lender, resulting in a total issuance of 49,957,714 RSUs. Each RSU will settle into one Class A subordinate voting share (each a "Share") of the Company upon the earliest of certain specified conditions (the "Distribution Event"), each as more fully described in the RSU Agreement. The issue price of the RSUs will be equal to CAD$0.08 per RSU. If at the time of the Distribution Event, the number of Shares underlying the RSUs is less than 4.24% of the fully diluted Shares (calculated in accordance with the terms of the RSU Agreement) of the Company, an additional number of RSUs will be issuable to the Lender by the Company with respect to the deficiency, each issuable at the closing market price on the Canadian Securities Exchange on the trading day prior to issuance.

About 4Front Ventures Corp.        
4Front is a national, vertically integrated multi-state cannabis operator with operations in Illinois and Massachusetts and facilities in Washington. Since its founding in 2011, 4Front has built a strong reputation for its high standards and low-cost cultivation and production methodologies earned through a track record of success in facility design, cultivation, genetics, growing processes, manufacturing, purchasing, distribution, and retail. To date, 4Front has successfully brought to market more than 20 different cannabis brands and over 1,800 products, which are strategically distributed through its fully owned and operated Mission dispensaries and retail outlets in its core markets. As the Company continues to drive value for its shareholders, its team is applying its decade of expertise in the sector across the cannabis industry value chain and ecosystem. For more information, visit https://4frontventures.com/

Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may be considered forward-looking, such as statements about entering into definitive documentation, obtaining regulatory approval, expanding retail footprint, or refinancing existing debt. Forward-looking statements are typically identified by words and phrases such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "seek," "should," "will," "would," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" or the negative of such words and other comparable terminology. However, the absence of these words does not mean that a statement is not forward-looking. Any forward-looking statements expressing an expectation or belief as to future events are expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future events and involve risks, uncertainties and other factors beyond 4Front's control. Therefore, you are cautioned against relying on any of these forward-looking statements. Actual outcomes and results may differ materially from what is expressed in any forward-looking statement. Except as required by applicable law, including Canadian and U.S. federal securities laws, 4Front does not intend to update any of the forward-looking statements to conform them to actual results or revised expectations.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/4front-ventures-retains-canaccord-genuity-to-optimize-capital-structure-and-announces-amendment-of-credit-facility-and-issuance-of-restricted-stock-units-302259188.html

SOURCE 4Front Ventures Corp.

FAQ

What is 4Front Ventures' stock symbol on the OTCQB?

4Front Ventures' stock symbol on the OTCQB is FFNTF.

How much additional funding did 4Front Ventures receive through the credit facility amendment?

4Front Ventures received approximately $850,000 through the credit facility amendment with ALT Debt II, LP.

What is the interest rate on 4Front Ventures' amended credit facility?

The interest rate on the amended credit facility is the greater of (i) the WSJ Prime Rate plus 10% and (ii) 18.5%, payable monthly.

How many Restricted Share Units (RSUs) did 4Front Ventures issue to the lender?

4Front Ventures issued a total of 49,957,714 Restricted Share Units (RSUs) to the lender as part of the credit facility amendment.

4FRONT VENTURES CORP

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