NEWS BRIEF

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

4Front Holdings public, 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 lisabk@mjbizdaily.com

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