4Front Ventures (CSE: FFNT) (OTCQB: FFNTF) said Wednesday it can’t meet its April 30 regulatory deadline to file its annual financial report because it can’t pay its auditors.

The Phoenix-based company also applied for a management cease trade order that would temporarily restrict company leaders from trading its securities while it tries to fix its money problems.

The delay comes as the company works to “resolve the issue and expects to be able to file the necessary reports upon completion of securing additional financing, restructuring its liabilities and continuing discussions with one of the company’s lessors,” according to a news release. Management stated that it expects to file within 60 days of restarting its audit.

The delay follows a tough stretch for 4Front, which lost $6.4 million in the third quarter while watching its revenue slide. Third-quarter revenue dropped to $15.2 million, down from $20.1 million a year earlier and lower than the $18.7 million from the previous quarter.

The company blamed “softness in our retail channel stemming from heightened competition” in both Illinois and Massachusetts markets for the revenue dip.

Still, CEO Andrew Thut previously tried to sound positive, saying the company was making progress on scaling production in Illinois, growing wholesale in Massachusetts and seeing better results in Washington.

“Despite the uncertainties surrounding federal cannabis reform, we’re optimistic, especially given signs that we may have unexpected advocates in the incoming administration,” Thut said at the time. “We’re confident entering Q4 and are ready to return to growth and sustainable positive cash flows from operations.”

4Front also said at the time that it retained Canaccord Genuity to help with an internal reorganization, particularly regarding its financial position. The company also took out an $850,000 loan to finance ongoing operations.

The company asked for relief under Canadian National Policy 12-203, which would block management from trading company securities until it files its financials. The Ontario Securities Commission hasn’t ruled on this request yet.

If rejected, the commission might instead impose a broader order affecting all company securities.

While the filings remain outstanding, 4Front promised to provide biweekly status updates and confirmed that insiders can’t trade company stock until the annual filings are submitted.

The company has been pushing growth initiatives despite its financial crunch. During the third quarter, it continued building a massive 250,000-square-foot cultivation facility in Matteson, Illinois, planning to expand from 24,000 to 34,800 square feet of growing space. Its Massachusetts wholesale business showed some promise with a 56% increase in revenue to nearly $2 million for the quarter.

As of September 2024, 4Front had $278 million in assets, with just $1.2 million in cash, against $326.5 million in liabilities, including nearly $69 million in debt.

The company said there are no bankruptcy proceedings underway and “no material business developments” since filing its last quarterly report in December beyond what its already disclosed.

Tilray Brands, Inc. (Nasdaq: TLRY)(TSX: TLRY) is asking shareholders to approve a reverse stock split to drive the share price higher. The company said it is calling a Special Meeting, where stockholders will be asked to vote for an amendment of the company’s Fifth Amended and Restated Certificate of Incorporation.

The reverse split ratio could range from 1-to-10 to 1-to-20. The exact ratio within this range will be determined by the Board of Directors, without reducing the authorized number of shares of our common stock.

The company currently has almost a billion shares outstanding and the number of shares has increased by 18.30% in one year.

Tilray CEO Irwin D. Simon said, “The Reverse Stock Split will better align Tilray’s number of shares outstanding with companies of our size and scope. A higher price per share would ensure compliance with Nasdaq’s continued listing requirements and places Tilray in a position to continue executing on our strategic plans. Looking ahead, we expect this decision to aid in the company’s efforts to stabilize trading levels, attract and retain institutional shareholders, and decrease our cost structure by over $1 million on an annual run rate basis. The fundamentals of our company remain intact, and we are confident that we have the right strategy and team to deliver long-term value for our shareholder base.”

In a statement, the company also said it expects to achieve cost savings from the Reverse Stock Split, which would reduce its expenditures associated with Tilray’s Annual Meeting of Stockholders.

Tilray informed shareholders during its recent earnings announcement that the company had posted a net loss of $793.5 million for the quarter, which weighed on its stock performance. The company’s share price has been below a dollar on the Nasdaq Exchange since February. If it stays below a dollar for over 30 days, then the company is considered to violate the minimum bid price requirement as set by the Exchange. Nasdaq gives violators 180 days to regain compliance and even if a company can’t achieve that, they can ask for another 180 days.

Just issued

The reverse split follows last year’s deal that the company entered into with TD Securities and Jefferies in an at-the-market equity program . During the nine months that ended February 28, 2025, the company issued 93,610,801 shares under the ATM Program generating gross proceeds of $143.4 million. The company paid $3.7 million in commissions and other fees associated with these issuances generating net proceeds of $139.7 million.

This isn’t the first time Tilray has done a reverse split. In 2021, the company engaged in a reverse split with a cumulative effect of 1:1.19, meaning 1.19 pre-split shares became 1 post-split share.