Cannabis firm 4Front to go public after closing $13.4 million raise

Arizona-based 4Front Holdings is charting a path to go public in Canada following its latest funding round.

The multistate marijuana retailer and producer, which raised $13.4 million with its recently closed funding round, expects to list on the Canadian Securities Exchange by the fourth quarter, said Josh Rosen, 4Front’s CEO and co-founder.

The company joins a growing list of U.S. cannabis firms, including MedMen, Green Thumb Industries and iAnthus Capital, that are turning to Canadian exchanges to raise capital.

“The capital markets have simply been stronger, for fairly obvious reasons, in Canada,” Rosen said.

The company is pursuing a reverse takeover (RTO) in Canada rather than an IPO, he added.

The maneuver, essentially a takeover of a public shell company, has become the go-to path for U.S. cannabis firms looking to tap into Canada’s public markets.

“The RTO mechanism is just generally much more accepted in Canada,” Rosen said.

A portion of the proceeds from the latest funding round will be used to cover the administrative costs of preparing to go public.

The company is also continuing to invest and grow its Mission-branded dispensaries and cultivation operations, which it operates in Illinois, Maryland, Massachusetts and Pennsylvania.

Lisa Bernard-Kuhn can be reached at [email protected]

One comment on “Cannabis firm 4Front to go public after closing $13.4 million raise
  1. Terry on

    We are only the second country in the World to legalize the use of marijuana and it’s a Canadian event and adventure for Canadians to participate in. That’s how it should be, we establish the market from the ground up no outside agencies supplying any crop. The Government failed miserably on this point. And who are these investors using un-traceable foreign bank accounts. Even though they set up a front company in Canada it’s still wrong. Let the Country they are from legalize it and they can invest all they want there. All funds should be from Canada and traceable back to an individual person with a personal income tax file to show all taxes are paid on all monies used too be invested to begin with. The Government and the conservative thinkers who let the wolves in with the doors wide open. So Hell and Bent on the negative punitive trying to kick the Canadian down. And using the Police to advocate about not being ready as all you hear is the naritive being presented as this is the first time their dealing with this issue. Losses respect when people do know the difference and tune the Government and it’s message out. Try being honest and doing what is best for Canadians first and close our new marijuana market off to foreign investment and take overs or purchases of foreign entities.

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