Mission South Shore will open at 6 a.m. on Jan. 1, 2020
VANCOUVER, BC, and PHOENIX, AZ, Dec. 19, 2019 – 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (“4Front” or the “Company”) is pleased to announce that its Mission dispensary located in Chicago’s South Shore neighborhood will begin adult-use sales on Jan. 1, 2020.
Mission South Shore is scheduled to open at 6 a.m. and make one of Illinois’ first legal adult-use cannabis sales to Edie Moore, executive director of the Chicago chapter of the National Organization for the Reform of Marijuana Laws (NORML) and a positive force for the normalization of cannabis.
The Mission dispensary, located at 8554 S. Commercial Ave., will be the only cannabis retail store on the city’s Southeast Side. It has been serving its neighborhood as a medical cannabis dispensary since 2017.
“The opening will be a great moment for our company, Chicago, and Illinois,” said Kris Krane, president of 4Front and Mission, and a Chicago resident. “We are honored to be part of it, and also honored to serve Edie, who has worked tirelessly to bring an end to cannabis prohibition, as our first customer.”
He added: “We’ve served the South Shore neighborhood for more than two years and we look forward to continuing to serve our medical patients as we welcome new legal adult customers to our store.”
About 4Front Ventures Corp. 4Front is a cannabis company designed for long-term success and built upon battle-tested operating capabilities at scale, experienced and committed leadership, a strategic asset base, and a commitment to being a magnet for talent. From plant genetics to the cannabis retail experience, 4Front’s team applies expertise across the value chain. 4Front has invested heavily to assemble a comprehensive collection of management skills and hands-on operating expertise to capitalize on the unique growth opportunity being afforded by the increased legalization of cannabis. For more information, visit 4Front’s website
Investor Contact
Andrew Thut, Chief Investment Officer IR@4frontventures.com
602-633-3067
Media Contact
Anne Donohoe / Nick Opich
KCSA Strategic Communications adonohoe@kcsa.com / nopich@kcsa.com
212-896-1265 / 212-896-1206
This news release was prepared by management of 4Front Ventures, which takes full responsibility for its contents. The Canadian Securities Exchange (“CSE”) has not reviewed and does not accept responsibility for the adequacy of this news release. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in 4Front Ventures’ periodic filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should,” and similar expressions, are forward-looking statements.
Forward-looking statements may include, without limitation, statements related to future developments and the business and operations of 4Front Ventures, developments with respect to legislative developments in the United States and the proposed trading dated of the resulting issuer.
Although 4Front Ventures has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under U.S. federal laws; change in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. 4Front Ventures disclaims any intention or obligation to update or revise such information, except as required by applicable law, and 4Front Ventures does not assume any liability for disclosure relating to any other company mentioned herein.
Mission South Shore will open at 6 a.m. on Jan. 1, 2020
VANCOUVER, BC, and PHOENIX, AZ, Dec. 19, 2019 – 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (“4Front” or the “Company”) is pleased to announce that its Mission dispensary located in Chicago’s South Shore neighborhood will begin adult-use sales on Jan. 1, 2020.
Mission South Shore is scheduled to open at 6 a.m. and make one of Illinois’ first legal adult-use cannabis sales to Edie Moore, executive director of the Chicago chapter of the National Organization for the Reform of Marijuana Laws (NORML) and a positive force for the normalization of cannabis.
The Mission dispensary, located at 8554 S. Commercial Ave., will be the only cannabis retail store on the city’s Southeast Side. It has been serving its neighborhood as a medical cannabis dispensary since 2017.
“The opening will be a great moment for our company, Chicago, and Illinois,” said Kris Krane, president of 4Front and Mission, and a Chicago resident. “We are honored to be part of it, and also honored to serve Edie, who has worked tirelessly to bring an end to cannabis prohibition, as our first customer.”
He added: “We’ve served the South Shore neighborhood for more than two years and we look forward to continuing to serve our medical patients as we welcome new legal adult customers to our store.”
About 4Front Ventures Corp. 4Front is a cannabis company designed for long-term success and built upon battle-tested operating capabilities at scale, experienced and committed leadership, a strategic asset base, and a commitment to being a magnet for talent. From plant genetics to the cannabis retail experience, 4Front’s team applies expertise across the value chain. 4Front has invested heavily to assemble a comprehensive collection of management skills and hands-on operating expertise to capitalize on the unique growth opportunity being afforded by the increased legalization of cannabis. For more information, visit 4Front’s website
Investor Contact
Andrew Thut, Chief Investment Officer IR@4frontventures.com
602-633-3067
Media Contact
Anne Donohoe / Nick Opich
KCSA Strategic Communications adonohoe@kcsa.com / nopich@kcsa.com
212-896-1265 / 212-896-1206
This news release was prepared by management of 4Front Ventures, which takes full responsibility for its contents. The Canadian Securities Exchange (“CSE”) has not reviewed and does not accept responsibility for the adequacy of this news release. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in 4Front Ventures’ periodic filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should,” and similar expressions, are forward-looking statements.
Forward-looking statements may include, without limitation, statements related to future developments and the business and operations of 4Front Ventures, developments with respect to legislative developments in the United States and the proposed trading dated of the resulting issuer.
Although 4Front Ventures has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under U.S. federal laws; change in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. 4Front Ventures disclaims any intention or obligation to update or revise such information, except as required by applicable law, and 4Front Ventures does not assume any liability for disclosure relating to any other company mentioned herein.
The planned sale supports 4Front’s capital allocation strategy
Management hosting its Q3 2019 earnings conference call today, Dec. 2, at 9 a.m. EST
VANCOUVER, BC, and PHOENIX, AZ, December 2, 2019 – 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (“4Front” or the “Company”), has signed a letter of intent to divest 100% of its economic interests associated with three dispensary licenses in Arkansas for a combination of cash and debt.
The proposed transaction is expected to be completed in mid-December. Terms of the deal are confidential.
“Although we believe Arkansas is an attractive developing medical cannabis market, we are optimizing our footprint and focusing our resources—both capital and execution capabilities—on our most significant opportunities,” said Josh Rosen, CEO of 4Front. “We view this opportunity to divest our interests in Arkansas as consistent with our approach.”
Conference Call
The Company will host its Q3 2019 earnings conference call with CEO Josh Rosen, CFO Brad Kotansky, and President Kris Krane today at 9 a.m. EST. Join by dialing 1-877-407-0792 toll free from the United States or Canada or 1-201-689-8263 if dialing from outside those countries.
The call will be available for replay if you’re unable to join. To access the replay, which will be available until December 9, dial 1-844-512-2921 toll free from the United States and Canada, or 1-412-317-6671 if dialing from outside those countries, and using this replay pin number: 13696657.
About 4Front Ventures Corp.
4Front is a cannabis company designed for long-term success and built upon battle-tested operating capabilities at scale, experienced and committed leadership, a strategic asset base, and a commitment to being a magnet for talent. From plant genetics to the cannabis retail experience, 4Front’s team applies expertise across the value chain. 4Front has invested heavily to assemble a comprehensive collection of management skills and hands-on operating expertise to capitalize on the unique growth opportunity being afforded by the increased legalization of cannabis. For more information, visit 4Front’s website.
Investor Contact
Andrew Thut, Chief Investment Officer IR@4frontventures.com
602-633-3067
Media Contact
Anne Donohoe / Nick Opich
KCSA Strategic Communications adonohoe@kcsa.com / nopich@kcsa.com
212-896-1265 / 212-896-1206
This news release was prepared by management of 4Front Ventures, which takes full responsibility for its contents. The Canadian Securities Exchange (“CSE”) has not reviewed and does not accept responsibility for the adequacy of this news release. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Forward Looking
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in 4Front Ventures’ periodic filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should,” and similar expressions, are forward-looking statements.
Forward-looking statements may include, without limitation, statements related to future developments and the business and operations of 4Front Ventures, developments with respect to legislative developments in the United States and the proposed trading dated of the resulting issuer.
Although 4Front Ventures has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under U.S. federal laws; change in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. 4Front Ventures disclaims any intention or obligation to update or revise such information, except as required by applicable law, and 4Front Ventures does not assume any liability for disclosure relating to any other company mentioned herein.
The planned sale supports 4Front’s capital allocation strategy
Management hosting its Q3 2019 earnings conference call today, Dec. 2, at 9 a.m. EST
VANCOUVER, BC, and PHOENIX, AZ, December 2, 2019 – 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (“4Front” or the “Company”), has signed a letter of intent to divest 100% of its economic interests associated with three dispensary licenses in Arkansas for a combination of cash and debt.
The proposed transaction is expected to be completed in mid-December. Terms of the deal are confidential.
“Although we believe Arkansas is an attractive developing medical cannabis market, we are optimizing our footprint and focusing our resources—both capital and execution capabilities—on our most significant opportunities,” said Josh Rosen, CEO of 4Front. “We view this opportunity to divest our interests in Arkansas as consistent with our approach.”
Conference Call
The Company will host its Q3 2019 earnings conference call with CEO Josh Rosen, CFO Brad Kotansky, and President Kris Krane today at 9 a.m. EST. Join by dialing 1-877-407-0792 toll free from the United States or Canada or 1-201-689-8263 if dialing from outside those countries.
The call will be available for replay if you’re unable to join. To access the replay, which will be available until December 9, dial 1-844-512-2921 toll free from the United States and Canada, or 1-412-317-6671 if dialing from outside those countries, and using this replay pin number: 13696657.
About 4Front Ventures Corp.
4Front is a cannabis company designed for long-term success and built upon battle-tested operating capabilities at scale, experienced and committed leadership, a strategic asset base, and a commitment to being a magnet for talent. From plant genetics to the cannabis retail experience, 4Front’s team applies expertise across the value chain. 4Front has invested heavily to assemble a comprehensive collection of management skills and hands-on operating expertise to capitalize on the unique growth opportunity being afforded by the increased legalization of cannabis. For more information, visit 4Front’s website.
Investor Contact
Andrew Thut, Chief Investment Officer IR@4frontventures.com
602-633-3067
Media Contact
Anne Donohoe / Nick Opich
KCSA Strategic Communications adonohoe@kcsa.com / nopich@kcsa.com
212-896-1265 / 212-896-1206
This news release was prepared by management of 4Front Ventures, which takes full responsibility for its contents. The Canadian Securities Exchange (“CSE”) has not reviewed and does not accept responsibility for the adequacy of this news release. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Forward Looking
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in 4Front Ventures’ periodic filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should,” and similar expressions, are forward-looking statements.
Forward-looking statements may include, without limitation, statements related to future developments and the business and operations of 4Front Ventures, developments with respect to legislative developments in the United States and the proposed trading dated of the resulting issuer.
Although 4Front Ventures has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under U.S. federal laws; change in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. 4Front Ventures disclaims any intention or obligation to update or revise such information, except as required by applicable law, and 4Front Ventures does not assume any liability for disclosure relating to any other company mentioned herein.
The company will hold a conference call with management on Monday, December 2
VANCOUVER, BC, and PHOENIX, AZ, November 29, 2019 – 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (“4Front” or the “Company”), an operator of strategically aligned cannabis-related businesses, including cultivation, production and retail operations, today released its unaudited financial results for the quarter ended September 30, 2019 (“Q3 2019”).
The Company’s Q3 2019 financial statements are the first to consolidate results from 4Front Holdings LLC (“4Front Holdings”) and Cannex Capital Holdings, Inc. (“Cannex”), which completed a merger on July 31, 2019. Q3 2019 includes Cannex operations from July 31, 2019, through September 30, 2019.
All dollar amounts herein are references to U.S. dollars.
Q3 2019 Financial Results Highlights
As previously reported, Systemwide Pro Forma Revenue, a non-IFRS measure, of $16,902,029, an increase of more than 20% over the previous quarter’s $14,058,442
As previously reported, IFRS Revenue of $7,517,621
Adjusted EBITDA, a non-IFRS measure, was a loss of $4,610,917
Net Income was a loss of $6,864,420**
The Company ended the quarter with $12.4 million of cash and anticipates ending November with approximately $13 million in available cash and undrawn loan commitments.
(Please see Note Regarding Non-IFRS Measures, Reconciliation, and Discussion below.) (*Please see the Financial Statement section below, and the Company’s Q3 2019 Unaudited Condensed Interim Financial Statements and Management Discussion and Analysis, available under the Company’s SEDAR profile at www.sedar.com, for more information.)
“These reported results reflect the initial consolidation of 4Front and Cannex operations and I’m proud of our collective teams’ efforts to support the integration of our two organizations and navigate the inherent changes that come with mergers. I couldn’t be more pleased with how the team has come together and has us prepared to capitalize on the opportunities in our dynamic industry,” said Josh Rosen, CEO of 4Front. “We have been, and intend to continue to be, aggressive, but prudent. As our President, Kris Krane, and I have noted in the past, our perspective is that we view the industry more like the game of Risk rather than Monopoly. In this capital markets environment, this means an even greater emphasis on strategic capital allocation, tighter spending controls, and prioritization of projects. We’re built for this.”
Q3 Operational Milestones and Updates
The integration of 4Front and Cannex is complete. Operational leadership and accountability have been streamlined across all three business divisions—Brightleaf, Mission, and Pure Ratios—positioning the Company to support the anticipated acceleration of growth in 2020
Brightleaf, 4Front’s cultivation and production division, introduced the first set of Cannex brands into the Massachusetts market
First harvest in Brightleaf’s Worcester, Mass., cultivation facility post-Cannex merger
Mission opened a dispensary in Catonsville, Maryland, the fourth Mission dispensary in the state
Pure Ratios’ THC-enhanced product line re-introduced into the California market in partnership with Caliva
The Company continued to progress on its key infrastructure projects, including its manufacturing facility in Commerce, California, the optimization of its vertically integrated facility in Georgetown, Massachusetts, and the adult-use preparations for Mission retail in Massachusetts, Illinois, and Michigan
4Front expanded its executive team with the hiring of Brad Kotansky as Chief Financial Officer and Alicia Mandel as Chief Human Performance Officer. In addition, it strengthened its finance team with the addition of Nicolle Dorsey as EVP of Finance.
Key Projects and Financial Guidance
“After a review of our existing license portfolio, capital spending plans and, importantly, the respective anticipated returns on invested capital, we have optimized our near-term plans to focus on driving revenue and profitability in 2020 without sacrificing the most attractive additional opportunities that support our long-term vision,” said CFO Brad Kotansky. “We’re fortunate to have an agile platform that didn’t overextend, which allows us to prioritize our spending, leaving only modest capital requirements to demonstrate meaningful growth and performance. We’ve set achievable expectations and should the access to and cost of capital improve, we have numerous opportunities in hand to accelerate our growth beyond our guidance.”
Mr. Rosen added: “While we see strong growth opportunities across our portfolio and we remain confident in our access to capital, we are less enthusiastic about the current cost of capital. As meaningful shareholders ourselves, we believe a more measured approach to near-term capital spending is in our shareholders’ best interest. Our financial guidance for 2020 and 2021 assumes we raise $30 million of external funding to support the completion of our infrastructure and near-term optimization plans in California, Massachusetts, and Illinois, and ongoing working capital. This should allow us, with some cushion, to achieve positive cash flow in the second half of 2020. We have a strong, supportive and aligned core stakeholder base, which gives us a high degree of confidence in our ability to support our capital needs and I look forward to providing updates on our progress over the coming months.”
4Front is providing the following guidance for 2020 and 2021:
Adjusted EBITDA is anticipated to inflect positive in the second half of 2020 due to an increase in sales volumes, primarily in Massachusetts and California.
The Company believes the foregoing guidance is reasonable given the current developments in the Company’s businesses and accelerating growth in cannabis markets in which the Company operates. However, the foregoing guidance is subject to the following assumptions and risks:
The Company’s ability to raise up to $30 million in capital;
The timing of completion of the Company’s infrastructure projects, including those ongoing at Georgetown, Massachusetts and Commerce, California, within budgeted cost;
Certain pricing assumptions for cannabis products in California, Massachusetts, and other markets in which the Company operates;
The Company’s ability to continue to develop wholesale sales relationships in markets in which it is introducing products, such as California and Massachusetts;
The Company’s subsidiaries, or entities with which the Company has managed services agreements or effectively similar arrangements, ability to attain and retain recreational cannabis licensing.*
(*Please see the Cautionary Note Regarding Forward Looking Statements below for more information regarding risks to the Company’s business.)
Additional Details
As of close of business today, 4Front would have a basic total of 530,852,417 shares outstanding, when calculated as if all share classes were converted to Subordinate Voting Shares, and a fully diluted total of 536,475,437[1] shares when calculated on the same basis. The total outstanding share count does not include shares to be issued pursuant to the Non-Brokered Private Placement described below. For further details regarding 4Front’s share structure, please see the its profile at www.thecse.com.
[1]Using the treasury stock method as of November 29, 2019.
Conference Call
The Company will host a conference call with CEO Josh Rosen, CFO Brad Kotansky, and President Kris Krane on Monday, December 2, at 9 a.m. EST. Join by dialing 1-877-407-0792 toll free from the United States or Canada or 1-201-689-8263 if dialing from outside those countries.
The call will be available for replay if you’re unable to join. To access the replay, which will be available until December 9, dial 1-844-512-2921 toll free from the United States and Canada, or 1-412-317-6671 if dialing from outside those countries, and using this replay pin number: 13696657.
Non-Brokered Private Placement
The Company further announces the completion of a non-brokered private placement (the “Private Placement”) of Subordinate Voting Shares of the Company to two principals of Bayfront Capital Holdings Limited and AHS Inc. (collectively “Bayfront”) as settlement for previously outstanding service fees owed to Bayfront related to services provided in 2018. The Company will issue under the Private Placement 517,728 Subordinate Voting Shares to each of the two principals at a price of CAD 0.59 per share, representing in aggregate under 0.2% of total shares outstanding of the Company.
Financial Statements The condensed consolidated interim financial statements for the nine months ended September 30, 2019, have been prepared in accordance with IAS 34 – Interim Financial Reporting. These statements have not been reviewed by an auditor.
The Company’s Management Discussion and Analysis and Interim Financial Statements for the period, and the accompanying notes, are available under the Company’s profile on SEDAR at www.sedar.com and on its website at https://4frontventures.com/investors.
Note Regarding Non-IFRS Measures, Reconciliation, and Discussion
In this press release, 4Front refers to certain non-IFRS financial measures such as Systemwide Pro Forma Revenue and Adjusted EBITDA. These measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. 4Front defines Systemwide Pro Forma Revenue as total revenue plus revenue from entities with which the Company has a management contract, or effectively similar relationship (net of any management fee or effectively similar revenue), but does not consolidate the financial results of per IFRS 10 – Consolidated Financial Statements. 4Front considers this measure to be an appropriate indicator of the growth and scope of the business.
Adjusted EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization less share-based compensation expense and one-time charges related to acquisition and financing related costs. 4Front considers these measures to be an important indicator of the financial strength and performance of our business. The following tables provide a reconciliation of each of the non-IFRS measures to its closest IFRS measure.
About 4Front Ventures Corp.
4Front is a cannabis company designed for long-term success and built upon battle-tested operating capabilities at scale, experienced and committed leadership, a strategic asset base, and a commitment to being a magnet for talent. From plant genetics to the cannabis retail experience, 4Front’s team applies expertise across the value chain. 4Front has invested heavily to assemble a comprehensive collection of management skills and hands-on operating expertise to capitalize on the unique growth opportunity being afforded by the increased legalization of cannabis. For more information, visit 4Front’s website.
Investor Contact
Andrew Thut, Chief Investment Officer IR@4frontventures.com
602-633-3067
Media Contact
Anne Donohoe / Nick Opich
KCSA Strategic Communications adonohoe@kcsa.com / nopich@kcsa.com
212-896-1265 / 212-896-1206
This news release was prepared by management of 4Front Ventures, which takes full responsibility for its contents. The Canadian Securities Exchange (“CSE”) has not reviewed and does not accept responsibility for the adequacy of this news release. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Certain statements contained in this release constitute “forward-looking information” and “forward looking statements” within the meaning of applicable Canadian and United States securities laws (collectively, “forward-looking information”), which are based upon the Company’s current internal expectations, estimates, projections, assumptions and beliefs. Statements concerning the Company’s objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and the business, operations, future financial performance and condition of the Company is forward-looking information. The words “believe”, “expect”, “anticipate”, “estimate”, “intend”, “may”, “will”, “would” and similar expressions, including the negative and grammatical variations of such expressions, are intended to identify forward-looking information, although not all forward-looking information contains these identifying words. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking information.
By their nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts and projections that constitute forward-looking information will not occur. Such forward-looking information in this release speaks only as of the date of this release. Forward-looking information in this release includes, but is not limited to, statements related to future developments and the business and operations of 4Front Ventures, statements with respect to expected revenue, Systemwide Proforma Revenue, and Adjusted EBITDA, statements with respect to infrastructure projects, statements with respect to raising capital and capital spending, growth opportunities, sales volume increases, changes in federal, state, and local cannabis laws/regulations, and the Company’s guidance for 2020 and 2021.
While the Company currently believes the guidance for 2020 and 2021 to be reasonable, it is subject to a number of assumptions and risks, including but not limited to the following:
The Company’s ability to raise up to $30M in capital;
The timing of completion of the Company’s infrastructure projects, including those ongoing at Georgetown, MA and Commerce, CA, within budgeted cost;
Certain pricing assumptions for cannabis products in California, Massachusetts, and other markets in which the Company operates;
The Company’s ability to continue to develop wholesale sales relationships in markets in which it is introducing products, such as California and Massachusetts;
The Company’s subsidiaries, or entities with which the Company has managed services agreements or effectively similar arrangements, ability to attain and retain recreational cannabis licensing.
The Company’s accurate estimation of its current and future tax liability, taking into account limitations posed by Internal Revenue Code Section 280E, which significantly limits deductions which may be taken by cannabis businesses.
The Company is not providing guidance on net income or earnings before income taxes because such IFRS measures will be subject to potentially wide fluctuations outside of the Company’s control and ability to accurately forecast, particularly with respect to the Company’s derivative liabilities, which are largely a function of the price of its publicly-traded subordinate voting shares.
Although 4Front Ventures has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: there can be no assurance that capital will be raised on desirable terms or at all, the Company may not meet its projections based on the risk factors set out above, capital projects may not be completed on the planned schedule or at all, capital projects being completed within budget, dependence on obtaining and/or retaining regulatory approvals, a potential change in laws could significantly impact the Company’s ability to do business, the Company’s limited operating history, market growth and state adoption may be hindered due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry, significant market disruption as jurisdictions in which the Company operates implement “track and trace” systems which track product from seed to sale in regulated markets, the Company’s failure to correctly estimate or pay its federal income taxes, change in the U.S. Internal Revenue Service regulations or guidance regarding Section 280E and cannabis-related businesses which could materially change the Company’s current or expected tax burden, and other regulatory or political change.
For more information regarding the risks to the Company’s business, please see the Q3 2019 financial statements and management discussion and analysis, available on www.sedar.com, and the Company’s Listing Statement available at www.thecse.com.
There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. 4Front Ventures disclaims any intention or obligation to update or revise such information, except as required by applicable law, and 4Front Ventures does not assume any liability for disclosure relating to any other company mentioned herein.
The company will hold a conference call with management on Monday, December 2
VANCOUVER, BC, and PHOENIX, AZ, November 29, 2019 – 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (“4Front” or the “Company”), an operator of strategically aligned cannabis-related businesses, including cultivation, production and retail operations, today released its unaudited financial results for the quarter ended September 30, 2019 (“Q3 2019”).
The Company’s Q3 2019 financial statements are the first to consolidate results from 4Front Holdings LLC (“4Front Holdings”) and Cannex Capital Holdings, Inc. (“Cannex”), which completed a merger on July 31, 2019. Q3 2019 includes Cannex operations from July 31, 2019, through September 30, 2019.
All dollar amounts herein are references to U.S. dollars.
Q3 2019 Financial Results Highlights
As previously reported, Systemwide Pro Forma Revenue, a non-IFRS measure, of $16,902,029, an increase of more than 20% over the previous quarter’s $14,058,442
As previously reported, IFRS Revenue of $7,517,621
Adjusted EBITDA, a non-IFRS measure, was a loss of $4,610,917
Net Income was a loss of $6,864,420**
The Company ended the quarter with $12.4 million of cash and anticipates ending November with approximately $13 million in available cash and undrawn loan commitments.
(Please see Note Regarding Non-IFRS Measures, Reconciliation, and Discussion below.) (*Please see the Financial Statement section below, and the Company’s Q3 2019 Unaudited Condensed Interim Financial Statements and Management Discussion and Analysis, available under the Company’s SEDAR profile at www.sedar.com, for more information.)
“These reported results reflect the initial consolidation of 4Front and Cannex operations and I’m proud of our collective teams’ efforts to support the integration of our two organizations and navigate the inherent changes that come with mergers. I couldn’t be more pleased with how the team has come together and has us prepared to capitalize on the opportunities in our dynamic industry,” said Josh Rosen, CEO of 4Front. “We have been, and intend to continue to be, aggressive, but prudent. As our President, Kris Krane, and I have noted in the past, our perspective is that we view the industry more like the game of Risk rather than Monopoly. In this capital markets environment, this means an even greater emphasis on strategic capital allocation, tighter spending controls, and prioritization of projects. We’re built for this.”
Q3 Operational Milestones and Updates
The integration of 4Front and Cannex is complete. Operational leadership and accountability have been streamlined across all three business divisions—Brightleaf, Mission, and Pure Ratios—positioning the Company to support the anticipated acceleration of growth in 2020
Brightleaf, 4Front’s cultivation and production division, introduced the first set of Cannex brands into the Massachusetts market
First harvest in Brightleaf’s Worcester, Mass., cultivation facility post-Cannex merger
Mission opened a dispensary in Catonsville, Maryland, the fourth Mission dispensary in the state
Pure Ratios’ THC-enhanced product line re-introduced into the California market in partnership with Caliva
The Company continued to progress on its key infrastructure projects, including its manufacturing facility in Commerce, California, the optimization of its vertically integrated facility in Georgetown, Massachusetts, and the adult-use preparations for Mission retail in Massachusetts, Illinois, and Michigan
4Front expanded its executive team with the hiring of Brad Kotansky as Chief Financial Officer and Alicia Mandel as Chief Human Performance Officer. In addition, it strengthened its finance team with the addition of Nicolle Dorsey as EVP of Finance.
Key Projects and Financial Guidance
“After a review of our existing license portfolio, capital spending plans and, importantly, the respective anticipated returns on invested capital, we have optimized our near-term plans to focus on driving revenue and profitability in 2020 without sacrificing the most attractive additional opportunities that support our long-term vision,” said CFO Brad Kotansky. “We’re fortunate to have an agile platform that didn’t overextend, which allows us to prioritize our spending, leaving only modest capital requirements to demonstrate meaningful growth and performance. We’ve set achievable expectations and should the access to and cost of capital improve, we have numerous opportunities in hand to accelerate our growth beyond our guidance.”
Mr. Rosen added: “While we see strong growth opportunities across our portfolio and we remain confident in our access to capital, we are less enthusiastic about the current cost of capital. As meaningful shareholders ourselves, we believe a more measured approach to near-term capital spending is in our shareholders’ best interest. Our financial guidance for 2020 and 2021 assumes we raise $30 million of external funding to support the completion of our infrastructure and near-term optimization plans in California, Massachusetts, and Illinois, and ongoing working capital. This should allow us, with some cushion, to achieve positive cash flow in the second half of 2020. We have a strong, supportive and aligned core stakeholder base, which gives us a high degree of confidence in our ability to support our capital needs and I look forward to providing updates on our progress over the coming months.”
4Front is providing the following guidance for 2020 and 2021:
Adjusted EBITDA is anticipated to inflect positive in the second half of 2020 due to an increase in sales volumes, primarily in Massachusetts and California.
The Company believes the foregoing guidance is reasonable given the current developments in the Company’s businesses and accelerating growth in cannabis markets in which the Company operates. However, the foregoing guidance is subject to the following assumptions and risks:
The Company’s ability to raise up to $30 million in capital;
The timing of completion of the Company’s infrastructure projects, including those ongoing at Georgetown, Massachusetts and Commerce, California, within budgeted cost;
Certain pricing assumptions for cannabis products in California, Massachusetts, and other markets in which the Company operates;
The Company’s ability to continue to develop wholesale sales relationships in markets in which it is introducing products, such as California and Massachusetts;
The Company’s subsidiaries, or entities with which the Company has managed services agreements or effectively similar arrangements, ability to attain and retain recreational cannabis licensing.*
(*Please see the Cautionary Note Regarding Forward Looking Statements below for more information regarding risks to the Company’s business.)
Additional Details
As of close of business today, 4Front would have a basic total of 530,852,417 shares outstanding, when calculated as if all share classes were converted to Subordinate Voting Shares, and a fully diluted total of 536,475,437[1] shares when calculated on the same basis. The total outstanding share count does not include shares to be issued pursuant to the Non-Brokered Private Placement described below. For further details regarding 4Front’s share structure, please see the its profile at www.thecse.com.
[1]Using the treasury stock method as of November 29, 2019.
Conference Call
The Company will host a conference call with CEO Josh Rosen, CFO Brad Kotansky, and President Kris Krane on Monday, December 2, at 9 a.m. EST. Join by dialing 1-877-407-0792 toll free from the United States or Canada or 1-201-689-8263 if dialing from outside those countries.
The call will be available for replay if you’re unable to join. To access the replay, which will be available until December 9, dial 1-844-512-2921 toll free from the United States and Canada, or 1-412-317-6671 if dialing from outside those countries, and using this replay pin number: 13696657.
Non-Brokered Private Placement
The Company further announces the completion of a non-brokered private placement (the “Private Placement”) of Subordinate Voting Shares of the Company to two principals of Bayfront Capital Holdings Limited and AHS Inc. (collectively “Bayfront”) as settlement for previously outstanding service fees owed to Bayfront related to services provided in 2018. The Company will issue under the Private Placement 517,728 Subordinate Voting Shares to each of the two principals at a price of CAD 0.59 per share, representing in aggregate under 0.2% of total shares outstanding of the Company.
Financial Statements The condensed consolidated interim financial statements for the nine months ended September 30, 2019, have been prepared in accordance with IAS 34 – Interim Financial Reporting. These statements have not been reviewed by an auditor.
The Company’s Management Discussion and Analysis and Interim Financial Statements for the period, and the accompanying notes, are available under the Company’s profile on SEDAR at www.sedar.com and on its website at https://4frontventures.com/investors.
Note Regarding Non-IFRS Measures, Reconciliation, and Discussion
In this press release, 4Front refers to certain non-IFRS financial measures such as Systemwide Pro Forma Revenue and Adjusted EBITDA. These measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. 4Front defines Systemwide Pro Forma Revenue as total revenue plus revenue from entities with which the Company has a management contract, or effectively similar relationship (net of any management fee or effectively similar revenue), but does not consolidate the financial results of per IFRS 10 – Consolidated Financial Statements. 4Front considers this measure to be an appropriate indicator of the growth and scope of the business.
Adjusted EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization less share-based compensation expense and one-time charges related to acquisition and financing related costs. 4Front considers these measures to be an important indicator of the financial strength and performance of our business. The following tables provide a reconciliation of each of the non-IFRS measures to its closest IFRS measure.
About 4Front Ventures Corp.
4Front is a cannabis company designed for long-term success and built upon battle-tested operating capabilities at scale, experienced and committed leadership, a strategic asset base, and a commitment to being a magnet for talent. From plant genetics to the cannabis retail experience, 4Front’s team applies expertise across the value chain. 4Front has invested heavily to assemble a comprehensive collection of management skills and hands-on operating expertise to capitalize on the unique growth opportunity being afforded by the increased legalization of cannabis. For more information, visit 4Front’s website.
Investor Contact
Andrew Thut, Chief Investment Officer IR@4frontventures.com
602-633-3067
Media Contact
Anne Donohoe / Nick Opich
KCSA Strategic Communications adonohoe@kcsa.com / nopich@kcsa.com
212-896-1265 / 212-896-1206
This news release was prepared by management of 4Front Ventures, which takes full responsibility for its contents. The Canadian Securities Exchange (“CSE”) has not reviewed and does not accept responsibility for the adequacy of this news release. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Certain statements contained in this release constitute “forward-looking information” and “forward looking statements” within the meaning of applicable Canadian and United States securities laws (collectively, “forward-looking information”), which are based upon the Company’s current internal expectations, estimates, projections, assumptions and beliefs. Statements concerning the Company’s objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and the business, operations, future financial performance and condition of the Company is forward-looking information. The words “believe”, “expect”, “anticipate”, “estimate”, “intend”, “may”, “will”, “would” and similar expressions, including the negative and grammatical variations of such expressions, are intended to identify forward-looking information, although not all forward-looking information contains these identifying words. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking information.
By their nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts and projections that constitute forward-looking information will not occur. Such forward-looking information in this release speaks only as of the date of this release. Forward-looking information in this release includes, but is not limited to, statements related to future developments and the business and operations of 4Front Ventures, statements with respect to expected revenue, Systemwide Proforma Revenue, and Adjusted EBITDA, statements with respect to infrastructure projects, statements with respect to raising capital and capital spending, growth opportunities, sales volume increases, changes in federal, state, and local cannabis laws/regulations, and the Company’s guidance for 2020 and 2021.
While the Company currently believes the guidance for 2020 and 2021 to be reasonable, it is subject to a number of assumptions and risks, including but not limited to the following:
The Company’s ability to raise up to $30M in capital;
The timing of completion of the Company’s infrastructure projects, including those ongoing at Georgetown, MA and Commerce, CA, within budgeted cost;
Certain pricing assumptions for cannabis products in California, Massachusetts, and other markets in which the Company operates;
The Company’s ability to continue to develop wholesale sales relationships in markets in which it is introducing products, such as California and Massachusetts;
The Company’s subsidiaries, or entities with which the Company has managed services agreements or effectively similar arrangements, ability to attain and retain recreational cannabis licensing.
The Company’s accurate estimation of its current and future tax liability, taking into account limitations posed by Internal Revenue Code Section 280E, which significantly limits deductions which may be taken by cannabis businesses.
The Company is not providing guidance on net income or earnings before income taxes because such IFRS measures will be subject to potentially wide fluctuations outside of the Company’s control and ability to accurately forecast, particularly with respect to the Company’s derivative liabilities, which are largely a function of the price of its publicly-traded subordinate voting shares.
Although 4Front Ventures has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: there can be no assurance that capital will be raised on desirable terms or at all, the Company may not meet its projections based on the risk factors set out above, capital projects may not be completed on the planned schedule or at all, capital projects being completed within budget, dependence on obtaining and/or retaining regulatory approvals, a potential change in laws could significantly impact the Company’s ability to do business, the Company’s limited operating history, market growth and state adoption may be hindered due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry, significant market disruption as jurisdictions in which the Company operates implement “track and trace” systems which track product from seed to sale in regulated markets, the Company’s failure to correctly estimate or pay its federal income taxes, change in the U.S. Internal Revenue Service regulations or guidance regarding Section 280E and cannabis-related businesses which could materially change the Company’s current or expected tax burden, and other regulatory or political change.
For more information regarding the risks to the Company’s business, please see the Q3 2019 financial statements and management discussion and analysis, available on www.sedar.com, and the Company’s Listing Statement available at www.thecse.com.
There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. 4Front Ventures disclaims any intention or obligation to update or revise such information, except as required by applicable law, and 4Front Ventures does not assume any liability for disclosure relating to any other company mentioned herein.
Company will release full financial results November 29, 2019, and host a conference call Monday, December 2, prior to market open
VANCOUVER, BC, and PHOENIX, AZ, Nov. 12, 2019 – 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (“4Front” or the “Company”) is providing preliminary Systemwide Pro Forma Revenue, as well as preliminary revenue, for its third quarter ended September 30, 2019 (“Q3 2019”). Q3 2019 financial results are the first to incorporate the financial results of assets previously owned by Cannex Capital Holdings, Inc., which completed its merger with 4Front on July 31, 2019.
Based on preliminary information, and subject to potential accounting adjustments, 4Front’s Q3 2019 Systemwide Pro Forma Revenue was $16,902,029, an increase of more than 20% over the last quarter ($14,058,442), as disclosed in its release dated August 29, 2019. The Company regards Systemwide Pro Forma Revenue, a non-IFRS measure, as an appropriate indicator of the economic scale of its business. (Please see discussion of this Non-IFRS measure below.) The Company is also announcing preliminary IFRS revenue of $7,517,621 for Q3 2019.
“We continued to make significant strides through the third quarter of 2019 driven both by our integration with Cannex and organic development of our operations,” said Josh Rosen, CEO of 4Front. “While the revenue growth is important, the future success of this company is being driven forward by the operational milestones we continue to achieve. I look forward to providing investors deeper insight into our performance and strategic plans on our December 2nd earnings call.”
The Company plans to release full financial results after markets close on November 29, 2019. Management will host a conference call to discuss the financial results the following Monday, December 2, at 9 a.m. EST.
Earnings Conference Call
The Company will host a conference call with management on Monday, December 2, at 9 a.m. EST. Join by dialing 1-877-407-0792 toll free from the United States or Canada or 1-201-689-8263 if dialing from outside those countries.
The call will be available for replay if you’re unable to join. To access the replay, which will be available until Monday, Dec. 9, dial 1-844-512-2921 toll free from the United States and Canada, or 1-412-317-6671 if dialing from outside those countries, and using this replay pin number: 13696657.
Non-IFRS Financial Measures
4Front uses Systemwide Pro Forma Revenue, which is not a measurement included in the International Financial Reporting Standards (IFRS), to capture total revenue plus revenue from entities with which the Company has a management contract, or effectively similar relationship (net of any management fee or effectively similar revenue), but does not consolidate the financial results of per IFRS 10 – Consolidated Financial Statements, plus revenue from pending and closed acquisitions as if such acquisitions had occurred on January 1, 2019. 4Front considers this measure to be an appropriate indicator of the growth and scope of the business. The following table provides a reconciliation of Systemwide Pro Forma Revenue to its closest IFRS measure.
About 4Front Ventures Corp.
4Front is a cannabis company designed for long-term success and built upon battle-tested operating capabilities at scale, experienced and committed leadership, a strategic asset base, and a commitment to being a magnet for talent. From plant genetics to the cannabis retail experience, 4Front’s team applies expertise across the value chain. 4Front has invested heavily to assemble a comprehensive collection of management skills and hands-on operating expertise to capitalize on the unique growth opportunity being afforded by the increased legalization of cannabis. For more information, visit 4Front’s website.
Investor Contact
Andrew Thut, Chief Investment Officer IR@4frontventures.com
602-633-3067
Media Contact
Anne Donohoe / Nick Opich
KCSA Strategic Communications adonohoe@kcsa.com / nopich@kcsa.com
212-896-1265 / 212-896-1206
Forward-looking statements may include, without limitation, statements related to future developments and the business and operations of 4Front Ventures, developments with respect to legislative developments in the United States and the proposed trading dated of the resulting issuer.
Although 4Front Ventures has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under U.S. federal laws; change in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. 4Front Ventures disclaims any intention or obligation to update or revise such information, except as required by applicable law, and 4Front Ventures does not assume any liability for disclosure relating to any other company mentioned herein.
Company will release full financial results November 29, 2019, and host a conference call Monday, December 2, prior to market open
VANCOUVER, BC, and PHOENIX, AZ, Nov. 12, 2019 – 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (“4Front” or the “Company”) is providing preliminary Systemwide Pro Forma Revenue, as well as preliminary revenue, for its third quarter ended September 30, 2019 (“Q3 2019”). Q3 2019 financial results are the first to incorporate the financial results of assets previously owned by Cannex Capital Holdings, Inc., which completed its merger with 4Front on July 31, 2019.
Based on preliminary information, and subject to potential accounting adjustments, 4Front’s Q3 2019 Systemwide Pro Forma Revenue was $16,902,029, an increase of more than 20% over the last quarter ($14,058,442), as disclosed in its release dated August 29, 2019. The Company regards Systemwide Pro Forma Revenue, a non-IFRS measure, as an appropriate indicator of the economic scale of its business. (Please see discussion of this Non-IFRS measure below.) The Company is also announcing preliminary IFRS revenue of $7,517,621 for Q3 2019.
“We continued to make significant strides through the third quarter of 2019 driven both by our integration with Cannex and organic development of our operations,” said Josh Rosen, CEO of 4Front. “While the revenue growth is important, the future success of this company is being driven forward by the operational milestones we continue to achieve. I look forward to providing investors deeper insight into our performance and strategic plans on our December 2nd earnings call.”
The Company plans to release full financial results after markets close on November 29, 2019. Management will host a conference call to discuss the financial results the following Monday, December 2, at 9 a.m. EST.
Earnings Conference Call
The Company will host a conference call with management on Monday, December 2, at 9 a.m. EST. Join by dialing 1-877-407-0792 toll free from the United States or Canada or 1-201-689-8263 if dialing from outside those countries.
The call will be available for replay if you’re unable to join. To access the replay, which will be available until Monday, Dec. 9, dial 1-844-512-2921 toll free from the United States and Canada, or 1-412-317-6671 if dialing from outside those countries, and using this replay pin number: 13696657.
Non-IFRS Financial Measures
4Front uses Systemwide Pro Forma Revenue, which is not a measurement included in the International Financial Reporting Standards (IFRS), to capture total revenue plus revenue from entities with which the Company has a management contract, or effectively similar relationship (net of any management fee or effectively similar revenue), but does not consolidate the financial results of per IFRS 10 – Consolidated Financial Statements, plus revenue from pending and closed acquisitions as if such acquisitions had occurred on January 1, 2019. 4Front considers this measure to be an appropriate indicator of the growth and scope of the business. The following table provides a reconciliation of Systemwide Pro Forma Revenue to its closest IFRS measure.
About 4Front Ventures Corp.
4Front is a cannabis company designed for long-term success and built upon battle-tested operating capabilities at scale, experienced and committed leadership, a strategic asset base, and a commitment to being a magnet for talent. From plant genetics to the cannabis retail experience, 4Front’s team applies expertise across the value chain. 4Front has invested heavily to assemble a comprehensive collection of management skills and hands-on operating expertise to capitalize on the unique growth opportunity being afforded by the increased legalization of cannabis. For more information, visit 4Front’s website.
Investor Contact
Andrew Thut, Chief Investment Officer IR@4frontventures.com
602-633-3067
Media Contact
Anne Donohoe / Nick Opich
KCSA Strategic Communications adonohoe@kcsa.com / nopich@kcsa.com
212-896-1265 / 212-896-1206
Forward-looking statements may include, without limitation, statements related to future developments and the business and operations of 4Front Ventures, developments with respect to legislative developments in the United States and the proposed trading dated of the resulting issuer.
Although 4Front Ventures has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under U.S. federal laws; change in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. 4Front Ventures disclaims any intention or obligation to update or revise such information, except as required by applicable law, and 4Front Ventures does not assume any liability for disclosure relating to any other company mentioned herein.
Content originally published and Shared from http://perfectbath.com
Before you begin any remodeling project, it’s important to make sure that you have everything you will need to complete the work correctly, and in a timely manner. A bathroom renovation is a big project for homeowners to tackle, so preparation is the key to ensuring that it goes as smoothly as possible. Use this handy checklist with tips as a guide:
Set your budget. Your budget is arguably the most important aspect of any bathroom remodeling project. Determine your budget ahead of time, and then keep it at the top of the checklist. As you purchase items and pay for services, keep track of how much you’re spending. Many projects go over budget, but by setting a reasonable number at the start and pricing services and materials beforehand, you can try to keep costs under control.
Hiring professionals, or DIY. Determine which aspects of the renovation project will you tackling yourself, and which ones will you be hiring out to the pros:
Demo
Layout/floor plan design
Flooring installation
Tile work
Fixture installation
Plumbing
Electrical
If you are going to hire professionals, you’ll want to contact several to get information and cost estimates. Choose a contractor that has a good reputation and recommendations from satisfied clients. They should be able to give you an estimate for the work to be done, as well as a time line for when the work will be completed.
Select your materials. Choosing the materials that you will use may be one of the most difficult and time consuming aspects of a remodel. Determine what items you want to replace and purchase, such as:
Vanity
Flooring
Tiles
Fixtures
Faucet and shower head
Paint color
Countertop
Shelving
Sink
If you aren’t sure about the design, you may consider working with a professional designer who can help to guide you through the process. There are many details to consider, and you want to be sure that you get everything that you want.
Finally, before any work can begin, you need to make sure that you have any necessary work permits. Check with your local building authority to see what you may need. Once you have your permits, have found a contractor, and have settled on the design, you’re ready to get the bathroom remodeling project underway.
Content originally published and Shared from http://perfectbath.com
NOTE TO SELF… this ARTICLE NEEDS TO BE SPUN AND Parts rewritten before publishing and rechecked for originality.
How to Choose the Best Hydrotherapy Tub
If you want the ultimate spa experience for your new bathroom, chances are you’re looking at tubs that provide hydrotherapy. The use of hydrotherapy has been around for centuries, providing therapeutic solutions for people with arthritis, muscle aches, partial paralysis, and more. Those massaging jet streams you enjoy when you soak in a Jacuzzi or hot tub don’t have to be a once-in-a-life time luxury. Instead, they can be a permanent part of your bathroom that you enjoy on a daily or weekly basis. But out of the numerous tub options that are available today, how do you decide which one is right for you? It all depends on your specific needs and what works best with the design of your bathroom.
Air Tubs Air tubs have several unique features, but the primary difference between them and other hydrotherapy tubs is that they work by releasing thousands of tiny, relaxing air bubbles throughout the tub. These stimulate your muscles and help reduce the pain associated with things like arthritis and excessive exercise. Another feature of air tubs is that they envelope the body in champagne-like fizz that gently caresses the skin. These tubs also stimulate and invigorate touch receptors to mildly release tension associated with tension and stress. These bubbles also appeal to multiple senses, including a blend of aromatherapy bath oils. Air tubs optimize your bathing experience by implementing a tub cleaning system that makes your life easier over time by taking off some of the pressure of frequently cleaning and maintaining your tub over time. Not only will the experience feel delightful, but it will be a constant source of physical therapy whenever you feel the need for it.
Whirlpool Tubs Whirlpool tubs are just what they sound like: tubs that move water strategically to create increased pressure that circulates. Whirlpool tubs also normally feature air jets that can be used for massage purposes in addition to the way they help circulate the water in the tub. Whirlpool tubs soothe muscles instantly through a stronger deep tissue massage. If you are experiencing severe muscle soreness or simply want the ultimate massage experience, a whirlpool tub might be the best option for your new bathroom. Whirlpool tubs often create a customized bathing experience with adjustable jets to fit your body and hit the places of soreness. Whirlpool tubs often maintain a comfortable bath water temperature when used with an inline heater. This can prevent the water from becoming scalding hot, as well as keep the temperature at an event state so that you do not have to leave more quickly due to the plummeting water temperature.
Total Massage Tubs Perhaps one of the best options for the ultimate spa experience is the total massage tub. With a total massage tub, you will enjoy luxury and sophistication every time you walk into your bathroom. Total massage tubs blend the technology of air tubs and whirlpool tubs to create a symphony of fizzy bubbles and pressurized water. Total massage tubs provide ultimate relaxation through the combined sensations of soft effervescence and targeted massage. Like the whirlpool tub, the total massage tub ensures optimal water temperature through the duration of your bath with an inline water heater. You can also enjoy a more advanced experience by incorporating any combination of aromatherapy oils into your bath. As the relaxing and detoxifying scents move into the air, you might even transcend reality for a few moments, enjoying the ecstasy of the moment. Total massage tubs also offer in-built tub cleaning systems that take the worry out of total massage tubs. Without the stress of maintaining your luxurious tub, you’ll be able to enjoy its features without hassle.
A Word on Design Most suppliers will feature tubs of various shapes and sizes within the different tub categories so that you can be sure to enjoy the tub you want without sacrificing the design. However, it’s important to think how your tub will fit into your overall design plan before you begin construction. If possible, already have the specific tub in mind, along with its measurements and constraints so that you can perform your remodeling according to the tub of your dreams.
Corner Bathtub
This is simply an overview of the different hydrotherapy tub features and we hope we’ve given you some points to consider when determining which one is right for your home. Do your own research and don’t be afraid to ask questions before making that final purchase.
Do you already enjoy the features of a hydrotherapy tub in your home? Which attributes were instrumental in helping you come to a decision? Leave your feedback in the comments below and let us know if there’s anything you like to consider that’s not included above!
Content originally published and Shared from http://perfectbath.com
Far Infrared Demonstration
Infrared saunas are different from traditional saunas because they operate at a temperature of 90-145 F compared to a traditional sauna that operates at 185-230 F. This temperature allows you to be able to breathe comfortably and enjoy the benefits for extended periods of time. Because the infrared rays safely and comfortably penetrate the skin up to 2″ deep, even your organs and deep tissues are stimulated. This produces sweating 2-3 times as much as a traditional sauna. Infrared saunas use 20% of the infrared energy.
What are Far infrared rays?
Far infra-red rays are also known as FIR are absolutely safe and beneficial to the human body. They are so safe that even doctors use them in hospitals to warm newborn babies. FIR are naturally occurring and are the benign portion of sunlight that we can receive. To perfectly understand FIR, picture yourself sunbathing outside on a warm day and a cloud is overhead. As soon as the cloud moves on and the rays are now directly on your body you start to feel warmer. From the sun, your body is being heated by FIR.
Another good example would be placing a thermometer in the sun and one in the shade. The thermometer in the sun is warmed by FIR and will read higher, but the outside air temperature is still the same. Infrared heaters in the sauna work the same way as natural sunlight but without the damaging side effects of solar radiation.
Sunlight is the source of life on earth. Sadly, not all of the energy is beneficial. Sunlight is an element of a wide spectrum of frequencies, including ultraviolet and infrared rays. Visible sunlight is in the center of this spectrum. At a higher frequency are ultraviolet rays that are responsible for causing sunburn.
At a reduced frequency, however, are the gentle infrared rays. Infrared light is a result of heat production. Humans generate waves in the 6-20 micron range. The ideal output range of far infrared sauna emitters is between 5 and 14 microns which is very close to the resonant frequency of a water molecule. This coincidence makes sense since our bodies are almost 70% water. This range, appears to have great regenerative effects on the body.
Our heater’s output is uniformly spread around the 9.4 micron point of peak human output. As the water molecule resonates or vibrates, this vibration generates a release of cellular toxins such as aluminum, cholesterol, mercury and other toxic gases such as sulfur and formaldehyde. The energy output from the far infrared sauna corresponds so closely to the body’s radiant energy that our bodies absorb 96% of the energy.
Before you begin any remodeling project, it’s important to make sure that you have everything you will need to complete the work correctly, and in a timely manner. A bathroom renovation is a big project for homeowners to tackle, so preparation is the key to ensuring that it goes as smoothly as possible. Use this handy checklist with tips as a guide:
