Marijuana multistate operator 4Front Ventures amended its credit facility and enlisted Canaccord Genuity Corp. to hone its financial strategy.
Under the amended credit facility – initially established in October 2023 – Altmore Capital affiliate Alt Debt II will advance Arizona-based 4Front $850,000, according to a news release.
4Front also will be able to access an additional $1.75 million.
According to the release, the credit facility’s outstanding principal “will bear simple interest at a rate per annum equal to the greater of (i) the WSJ Prime Rate plus 10% and (ii) 18.5%, payable monthly.”
In connection with the amendment, 4Front also is doubling the percentage of restricted share units it issued to the lender.
Meanwhile, the release noted, Canada-based Canaccord will lead 4Front’s ongoing efforts to consolidate and streamline its capital structure.
Canaccord’s initial focus will be looking at opportunities for 4Front to refinance debt and raise capital for growth while reviewing a range of operational and strategic alternatives.
“We’re at a pivotal moment as we begin to scale our flagship Matteson facility and expand our Mission retail footprint in Illinois,” 4Front’s Andrew Thut, who took over as CEO in January, said in a statement.
The Matteson, Illinois, facility has 12,000 square feet of flowering canopy and is on track to triple capacity by the middle of the fourth quarter, Thut said when 4Front released its second-quarter earnings report in August.
Thut also said 4Front’s revenue remained steady during the second quarter, and as the company strengthened its wholesale strategy, it experienced 10% growth in Illinois and 31% in Massachusetts.
Shares of 4Front trade as FFNT on the Canadian Securities Exchange and FFNTF on the over-the-counter markets.
