4Front Ventures

The Daily Hit: September 26, 2024

Published

3 months ago

September 26, 2024

mscannabiz.com

The Daily Hit is a recap of the top financial news stories for Thursday, September 26, 2024.

On the Site

SEC fines Former Weedmaps executives $175k apiece for ‘misleading’ user numbers

The SEC announced earlier that the company agreed to a $1.5 million fine to settle the same allegations of wrongdoing.

Read more here.

SEC hands down final judgments in CanaFarma case

CanaFarma Co-founder Vitaly Fargesen is fined and barred from penny stock offerings.

Read more here.

Kentucky awards first medical marijuana business permit to testing lab

A lottery for cultivator and processor permits is scheduled for Oct. 28.

Read more here.

Hemp companies sue New Jersey over new regulatory system

The operators argue that the new rules change the definition of hemp that was laid out in the 2018 Farm Bill.

Read more here.

4Front hires Canaccord Genuity to help with its finances

The company also signed an updated credit agreement with an existing lender for $2.6 million.

Read more here.

Simply Solventless to acquire pre-roll maker for $13.5 million

The move is expected to boost Simply Solventless’ projected 2024 annualized net income to $10 million per year.

Read more here.

Earnings:

In Other News

Shiny Bud

Shiny Health & Wellness Corp. completed its NOI process for its wholly owned subsidiary Shiny Bud, pursuant to the provisions of the Bankruptcy and Insolvency Act (Canada). Effective Sept. 20, 2024, the company issued 100 common shared to a purchaser and cancelled all other previously issued securities of Shiny Bud without consideration.

Read more here.

US cannabis policy

With more Americans using ever-stronger marijuana, a federal advisory panel is calling for a public health approach that’s a big departure from “Just Say No.” Thursday’s report proposes a health-focused strategy with the Centers for Disease Control and Prevention taking a larger role in cannabis policy than ever before.

Read more here.

Global cannabis seeds market

The global cannabis seeds market was valued at $1.3 billion in 2021 and is projected to reach $6.5 billion by 2031, growing at a CAGR of 18.4% from 2022 to 2031.

Read more here.

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Author: mscannabiz.com

MScannaBIZ for all you Mississippi Cannabis News and Information.

4Front Ventures

The Daily Hit: November 14, 2024

Published

1 month ago

November 16, 2024

mscannabiz.com

News from: Tilt Holdings, Agrify, Massachusetts, Dan Bilzerian and more.

The Daily Hit is a recap of the top financial news stories for Thursday, November 14, 2024.

On the Site

Tilt Holdings to review strategic alternatives for its plant-touching business

Revenue fell in the quarter due to shipping delays for its Jupiter brand.

Read more here.

Bilzerian v. Bilzerian: Son sues dad over control of Ignite

Dan Bilzerian claims he was unlawfully pushed out of Ignite by his father.

Read more here.

Scores of cannabis farmers sue New York state over botched recreational rollout

The coalition claims that the Office of Cannabis Management’s actions directly led to “financial ruin” for its members.

Read more here.

Massachusetts regulators, OSHA say ground cannabis dust a ‘hazardous chemical’ following Trulieve worker death

Regulators outlined recommendations and rules related to creating a safe working environment for those working with cannabis.

Read more here.

Agrify reports $18.7M loss as leadership charts hemp beverage push

The focus on hemp-based drinks marks a new era for the firm under its new GTI leadership.

Read more here.

Earnings:

In Other News

New Mexico

New Mexico lawmakers on Wednesday discussed the prospect of giving “police power” to the state Cannabis Control Division, which issues permits for the state-legal industry, to ramp up enforcement against the still-thriving illicit market.

Read more here.

Missouri

In less than two years of selling legal recreational cannabis, Missouri’s legal market has grown to $1.4 billion – outperforming states with a longer history of marijuana legalization like Arizona, Colorado and Nevada.

Read more here.

Idaho

The organization Kind Idaho filed a final proposal with the Idaho Secretary of State’s Office that would put the question of cannabis legalization on the ballot in 2026. The petition, if approved, put the question of legalizing cannabis for personal possession and production in front of voters. It would not, however, establish a legal marketplace like the one in Washington state.

Read more here.

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Author: mscannabiz.com

MScannaBIZ for all you Mississippi Cannabis News and Information.

4Front Ventures

4Front hires Canaccord Genuity to help with its finances

Published

3 months ago

September 26, 2024

mscannabiz.com

The company also signed an updated credit agreement with an existing lender for $2.6 million.

Phoenix-based 4Front Ventures Corp. (CSE: FFNT) (OTCQB: FFNTF) is making strategic moves to better position itself financially, the company announced on Thursday. The steps included retaining Canaccord Genuity Corp. as a financial advisor and also taking out a new $850,000 loan to help pay for ongoing operations.

In its most recent quarter, 4Front reported a net loss of $4.8 million, with a net loss of $23.3 million for the first six months of 2024. It also reported being $67.37 million in debt.

Canaccord was hired to explore options for “refinancing existing debt and raising fresh growth capital,” 4Front said in a press release, along with looking into other options to set the multistate operator on a path to profitability.

4Front also notified investors that it agreed to an updated credit facility with existing lender ALT Debt II LP, an affiliate of Altmore Capital, for a total credit line of $2.6 million, of which $850,000 was advanced to 4Front immediately. The remaining $1.75 million was left in reserve. ALT Debt II first lent 4Front $10 million last October.

In connection with the amended credit facility, 4Front said it will “enter into a restricted stock unit agreement” to double the number of shares issued to ALT Debt II, with a new total of 49.9 million restricted stock units with an issue price of 8 Canadian cents apiece.

“We’re at a pivotal moment as we begin to scale our flagship Matteson facility and expand our Mission retail footprint in Illinois,” Andrew Thut, CEO of 4Front, said in a statement. “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.”

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Author: mscannabiz.com

MScannaBIZ for all you Mississippi Cannabis News and Information.

4Front Ventures

4Front Ventures dials in private label strategy for Illinois expansion

Published

4 months ago

August 16, 2024

mscannabiz.com

4Front Ventures Corp. (OTCQX: FFNTF) has its eyes set on branded and private label products to capitalize on Illinois’ underdeveloped wholesale market, executives said during the company’s Wednesday earnings call.

Despite a 31% revenue decline over the year, 4Front saw wholesale revenue growth of 10% in Illinois versus the previous quarter. And the company’s new Matteson, Illinois, cultivation facility has been key to its strategy for further growth.

Part of that wholesale opportunity comes from 4Front’s existing wholesale branded business, but the company isn’t putting all its eggs in one basket. Instead, it’s implementing a “multipronged strategy” that also includes private label deals.

“We want to have a balanced assortment where we can have goods that appeal to a broader range of customers,” Ray Landgraf, president of business development, said, “and we’re acknowledging that maybe not every single one of those brands will be a 4Front brand.”

Just how much growth does the company see in that wholesale segment? “We think we can grow that 3x to 4x,” Landgraf said.

The company says partnering with third-party brands is a “strong monetization opportunity.” The approach is particularly appealing in Illinois, which Landgraf characterized as “one of the least mature markets in terms of wholesale and bulk.”

“We just see a great opportunity to find stability, to get contracts in place, to deliver partners’ consistent supply,” Landgraf said.

It’s a win-win situation, according to Landgraf. By supplying third-party brands, 4Front can nab consistent demand for its increased production while also gaining more shelf space for its own brands.

“Illinois doesn’t have a ton of external brands or large brand participation,” Landgraf said, in part due to a lack of consistent supply.

Management said the company’s increased production capacity from the Matteson facility can help secure those long-term supply contracts with partners.

But the first step is ramping up production at the grow. Brandon Mills, executive vice president of operations, said 4Front plans to reach 35,000 square feet of canopy by November, with monthly production stabilizing at 15 harvests by December.

“As of now, we have over 12,000 square feet of flowering canopy online in Matteson, nearly doubling our cultivation footprint versus prior quarters in Illinois,” CEO Andrew Thut said. “By the end of August, we’ll triple the size of our canopy in the state and will be at full capacity by the end of November.”

At full capacity, Mills projects monthly production of around 3,000 pounds of dried biomass and more than 2,000 pounds of sellable flower.

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