4Front Holdings LLC Archives - Green Market Report

StaffJune 9, 2022
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4Front Ventures Corp.(CSE: FFNT) (OTCQX: FFNTF) has made several C-suite changes including a new Chief Financial Officer, Executive Vice President, General Counsel, President of California Operations, and two additional Board members.

Andrew Thut, who served as an interim chief financial officer, will remain in his original capacity as a chief investment officer for the 4Front. Thut was given the interim role in July 2021. At that time, the company has ended its month-to-month independent contractor arrangement with Peter Rennard as interim CFO. 

Keith Adams has been named the new CFO. Previously he served as the chief financial officer of LPF Holdco better known as Loudpack, one of California’s leading privately held, vertically integrated cannabis companies, famous for its award-winning cannabis brands, which was acquired by Harborside Inc. in April 2022.

“I am excited to announce our new senior leadership and board appointments, which strengthen our leadership team and enable us to drive growth forward for our business,” said Leo Gontmakher, CEO of 4Front. “This exceptional team is composed of bright, promising leaders who share an unwavering passion for cannabis, and each member brings an impeccable track record of building strong companies. I am confident that each appointee will make significant, tangible contributions to our Company and culture. As we continue to lead the industrial revolution of cannabis, these people will help fortify our position as the leading producer in low-cost, high-quality cannabis CPG, and I look forward to working closely with them.”

In addition to that appointment, Christopher Wimmer was named as general counsel; Ray Landgraf as president of California Operations; Brandon Mills as executive vice president; and Robert Hunt and Amit Patel as new board members. These appointments are in line with 4Front’s action-centered leadership approach to ensure the Company is best positioned for long-term growth.


StaffMay 24, 2022
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After the market closed on Monday, 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) announced its financial results for the first quarter ended March 31, 2022. 4Front reported that its revenue increased 13% year-over-year to $26.1 million. Like other cannabis companies, the first-quarter revenue for 4Front fell from the fourth quarter’s revenue of $28.5 million. 

The net losses were trimmed to $5.8 million from last year’s $11 million for the same time period. The earnings per share improved to ($0.01) from last year’s ($0.02) for the same time period. 

“Our business inflected during the first quarter of 2022 as a result of the investments and efficiencies we made over the last 18 months to meet our long-term strategic goals,” said Leo Gontmakher, Chief Executive Officer of 4Front. “We now have a fully-capitalized infrastructure in place to drive robust growth through this year and well into the future. Our thesis of providing consistent, low-cost production at scale continues to play out as designed, with the operational achievements from 2021 continuing to provide a solid foundation for the expected growth of our production and sales.”

4Front said it continues to believe that wholesale growth in both Massachusetts and Illinois is poised to strengthen over the year as additional retail comes online in those underserved states. As of March 31, 2022, the company had $8.6 million of cash and $48.7 million of related-party long-term debt not due until May 2024. This is a big drop from the fourth quarter’s ending cash balance of $22 million.

Gontmakher added, “Our retail operations are showing solid performance, with increasing customer counts despite some expected pricing headwinds. Additionally, our cultivation and manufacturing processes and facilities are now fully optimized for the large-scale production of high-quality, low-cost products. The acquisition of NECC and its state-of-the-art facility, the best we have ever seen, has contributed to improvements not only in Massachusetts, but across our platform as we further implement their practices into our own process. The resulting high-quality flower has enabled increased sales of our house brands and further penetration into wholesale markets.”

“In California, we were proud to announce the acquisition of Island at the end of March and its subsequent closing in April. The Island brand and their seasoned management team are perfect complements to the 4Front model, and since closing the transaction we have fully integrated Island into our production and distribution channels. The scale of our Commerce operations enables us to buy similarly successful, attractive brands and manufacture them at considerably lower cost, producing strong margins which fall right to our bottom line. We look forward to announcing more exciting developments in California over the coming months.”

 

“We’re excited to set up our next stage of growth in Illinois, with the first phase of our latest facility in Matteson expected to be completed in six months and ahead of schedule. I am confident that with the completion of the Matteson facility on the near horizon, and a fully operational Commerce facility showing strong sales momentum, we are fully prepared for our next stage of growth as a business.”

 


StaffFebruary 26, 2019
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The acquisitions of Healthy Pharms and Greens Goddess increase 4Front’s national footprint and position it well in the Massachusetts and Arizona markets

 

PHOENIX, Feb. 26, 2019/AxisWire/ 4Front Holdings, LLC (“4Front”), a leading retail and brand development company in the U.S. cannabis sector, has closed two recent acquisitions that expand its national reach and position it well in Massachusetts’nascent adult-use market and in Arizona, where voters have a good chance of legalizing cannabis for adult use by ballot initiative in 2020.

Highlights:

  • Acquired Massachusetts vertical license holder Healthy Pharms, owner of two dispensaries in Georgetown and Harvard Square, with plans to convert to adult use shortly and re-launch under 4Front’s Mission retail brand
  • Healthy Pharms owns a production facility in Georgetown that, following an expansion, will serve as 4Front’s primary cultivation and processing hub in Massachusetts
  • In conjunction with the planned merger of 4Front and Cannex Capital Holdings, Inc. (“Cannex”), the first of Cannex’s brands is set to hit the Massachusetts market by mid-2019
  • Entered the Arizona market by acquiring the manager of the vertical license holder, Greens Goddess, which currently owns a Phoenix dispensary
  • The Arizona license comes with the ability to operate a production facility and 4Front plans to build out that capacity to participate in what is anticipated to be a robust cannabis market, with a similar plan to introduce Cannex’s brands in Arizona

MASSACHUSETTS
In Massachusetts, 4Front has acquired Healthy Pharms, Inc. (“Healthy Pharms”), a vertically integrated cannabis company that operates dispensaries in Georgetown and Cambridge’s Harvard Square. The Georgetown property is also home to a cultivation and processing facility that has the space for significant expansion.

“This acquisition provides 4Front with an immediate platform to more aggressively participate in the early growth of the Massachusetts recreational market, providing significantly greater production capacity,” said Josh Rosen, 4Front’s CEO. “This opportunity is made all the more exciting because of 4Front’s planned merger with Cannex, whose team has developed deep expertise in scaled cannabis production and distribution in the competitive Washington adult-use market.”

The Georgetown dispensary, which is roughly 3,000 sq. ft., is currently medical only, but is anticipated to expand to include adult-use later this year. It has a prime retail location for adult-use, being adjacent to I-95, close to the New Hampshire border, with significant parking. Plans are already under way for a construction project that will expand the retail sales floor and add more point-of-sale systems.

The Cambridge store is the sole dispensary in Harvard Square with a premium central location. The dispensary currently serves the medical market and also is navigating the required processes to expand to serve adult-use guests.

Healthy Pharms’ cultivation and processing facility is co-located with its Georgetown dispensary in a 65,000-square-foot building. Healthy Pharms is currently operating with approximately 8,000 sq. ft. of flowering canopy, which could be quickly expanded to more than 10,000 sq. ft., but the broader expansion potential is significant and provides a blank slate for the Cannex team once 4Front’s expected merger with Cannex closes.

The current plan is to build out the facility to comfortably accommodate a flowering canopy of approximately 35,000 sq. ft. Once that buildout is complete, it should serve as 4Front’s production and cultivation hub for Massachusetts. 4Front has plans to quickly bring the established brands of Cannex, which currently represents 7 of the top 10 selling infused-product brands in Washington state, to the Massachusetts market.

“The Georgetown cultivation facility has so much potential to match in capacity and yield what the Cannex facility in Elma, Wash., has been able to do,” according to Leo Gontmahker, COO of Cannex. “I’m excited to design and build that space with the objective of capturing significant market share in the Massachusetts adult-use market. Expect to see some of Cannex’s most successful brands in the Massachusetts market by the second quarter of 2019.”

Healthy Pharms was originally a client of 4Front’s consulting business, 4Front Advisors, which had been hired to help secure its operating license, which it did in January 2014 during the initial medical cannabis licensing process in Massachusetts.

“I’ve known Kris Krane and 4Front since early 2013, while they diligently supported our efforts to start up,” noted Healthy Pharms’ co-founder Nat Averill. “When we needed help to fund the expansion of our successful launch in Massachusetts, we looked for partners with a similar philosophy. We are excited to expand our capacity and products, provide greater opportunity for the great team we put together, and to be building all this with the folks from 4Front.”

ARIZONA
In Arizona, 4Front has acquired PHX Interactive, LLC, which manages vertically integrated license holder Greens Goddess Products, Inc. (“Greens Goddess”). Greens Goddess currently owns the Herb’N dispensary in northern Phoenix. Along with the existing dispensary, the license allows for the operation of a cultivation and processing facility, but Greens Goddess has not developed that capacity yet.

4Front believes there’s a high probability that Arizona voters will legalize cannabis for adult use by a ballot initiative in 2020, an effort which just narrowly missed in 2016.

“Given the expected regulatory expansion, we are excited to enter the Arizona market at an opportune time. It should allow us to capitalize on Cannex’s capabilities in Arizona, with an ability to build cultivation and processing space to spec,” said Rosen. “We view this market as likely having ample supply to support a meaningful manufacturing and distribution business.”

Greens Goddess President and CEO Nick Couturier added: “We’re thrilled to partner with 4Front and look forward to expanding operations in Arizona and becoming one of the top brands in the state.”

The Healthy Pharms and Herb’N dispensaries continue to operate under their existing brand names, with plans to eventually re-brand as Mission, which is 4Front’s in-house brand of cannabis retail stores.

About 4Front
4Front Holdings, LLC (“4Front”), is a leading retail and brand development company in the U.S. cannabis sector. It has developed a national platform that consists of a multi-state footprint, including its Mission-branded retail operations, and a far-reaching network of partnership relationships. Led by a group of professionals with experience in finance, real estate, manufacturing, and multi-location retail and hospitality operations, 4Front has invested heavily in assembling a team with the management skills and hands-on operating expertise that can support the rapid operational growth opportunity being afforded by the increased legalization of cannabis across the United States, as well as internationally. For more information, visit the website.

Media Contacts
Anne Donohoe / Nick Opich
KCSA Strategic Communications
adonohoe@kcsa.com / nopich@kcsa.com
212-896-1265 / 212-896-1206


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Phoenix,  June 5, 2018 /AxisWire/ 4Front Holdings, LLC (“4Front”), a leading investment and management firm in the cannabis industry, is pleased to announce that Co-founder and President Kris Krane, has been elected to serve a third term on the National Cannabis Industry Association’s (NCIA) Board of Directors.

The NCIA is the cannabis industry’s largest and most influential trade association, representing the interests of its more than 1,500 members.

Mr. Krane was first elected to his first two-year term on the NCIA’s board in 2014. The board consists of 18 elected directors, plus the executive director, and has oversight over the association’s strategic direction and budget.

“I’m excited for the opportunity to serve on the NCIA board for a third term. The next few years will be some of the most critical the cannabis industry has faced, as we are likely looking at our best opportunity ever to make changes at the federal level on critical issues like banking and 280e reform, and possibly even to end federal marijuana prohibition,” Mr. Krane said. “Those of us who have worked on this issue for decades recognize how crucial the upcoming years will be for this industry and it is imperative that organizations like NCIA be well be a leading, well-funded body that is focused on the task at hand.”

Mr. Krane has been a leader in the cannabis industry for more than 20 years, first on the advocacy side, serving as associate director of NORML from 2000-2005 and executive director of Students for Sensible Drug Policy (SSDP) from 2006-2009. In 2011, he co-founded 4Front, which quickly earned a reputation as one of the industry’s most successful consulting companies. He also serves on boards of the New Jersey Cannabis Industry Association, the Arkansas Medical Marijuana Association, and is a Trustee of SSDP. He also writes a regular column for Forbes, and co-hosts the popular Marijuana Today podcast.

About 4Front
4Front Holdings, LLC (“4Front”) is a leading investment and management firm in the U.S. cannabis sector. It has developed a national platform that consists of a multi-state footprint, including its Mission-branded retail operations, and a far-reaching network of partnership relationships. Led by a group of professionals with experience in finance, real estate, manufacturing, and multi-location retail and hospitality operations, 4Front has invested heavily to assemble a comprehensive collection of management skills and hands-on operating expertise that can support the rapid operational growth opportunity being afforded by the increased legalization of cannabis across the United States as well as internationally. For more information, visit the website.

Media Contacts
Anne Donohoe
KCSA Strategic Communications
212-896-1265
adonohoe@kcsa.com

 


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