Phoenix-based 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) boosted revenue 13% in 2022, but the multistate operator also saw it net loss increase 22% for the same period.
Sales increased to $106.2 million for the year, up 13.7% from $93.4 million in 2021. Revenue from real estate grew 11% to $12.4 million.
CEO Leo Gontmakher acknowledged that 2022 presented a “challenging and unpredictable operating environment,” but the company said it managed to achieve positive operational cash flow as of March 2023.
Net loss for the year was $46.9 million, up from the $38.3 million recorded a year ago.
Adjusted EBITDA for 2022 was $27.7 million, representing an adjusted EBITDA margin of 20%.
As of Dec. 31, 2022, the company had $15.2 million of cash and $49.8 million of related-party long-term debt, not due until May 2024.
During the year, 4Front boosted its footprint in both Massachusetts and California via acquisitions, including:
- New England Cannabis Co., Holliston, Massachusetts
- Island Cannabis Co., Redondo Beach, California
- Bloom Farms, San Francisco
Since the end of the year, 4Front also signed a definitive agreement to acquire an adult-use retail dispensary license in Chicago and is in discussions to acquire additional retail dispensary licenses in the state to reach the maximum allowable balance of 10.
“In Illinois, construction at our Matteson facility is anticipated to conclude in April and operations will commence upon activation of the power supply, which is expected in the third quarter,” Gontmakher said in a statement. “Additionally, we are pleased to announce we signed definitive documents to acquire a third retail license in the state to support our growing operations. … With these pieces in place, we are ideally positioned to double the size of our company in Illinois alone over the next 24 months.”
4Front has existing operations in five states: California, Illinois, Massachusetts, Michigan, and Washington.