Cannabis MSO 4Front nets $33 million from sale-leaseback deal

Women, minority execs show few gains in U.S. cannabis industry, according to the latest data from the MJBiz Diversity, Inclusion and Equity Report. Get your copy here.


Cannabis multistate operator 4Front Ventures said it has completed a sale-leaseback of cultivation and production facilities in Massachusetts and Washington state, generating $33 million to pay down debt and for general purposes.

The deal is just the latest in a wave of sale-leaseback transactions in the marijuana industry that help operators raise cash and bolster their financial position.

“The successful closing of the transaction marks a significant milestone in our stated strategy to further strengthen our balance sheet, providing the company greater flexibility to fund its growth initiatives,” 4Front CEO Leo Gontmakher said in a statement.

The all-cash sale was to California-based Innovative Industrial Properties (IIP), the industry leader in sale-leaseback transactions.

IIP will lease back the facilities to Arizona-based 4Front under a 20-year agreement.

4Front said it repaid its outstanding debt to affiliates of California-based Gotham Green Partners and will use remaining proceeds for general corporate purposes.