PHOENIX – Due to financial constraints that have impacted the company’s ability to pay its auditors, 4Front Ventures Corporation will be unable to meet the April 30, 2025, deadline for filing the following continuous disclosure documents:
- Annual audited financial statements for the year ended December 31, 2024, as required by section 4.2 of National Instrument 51-102 – Continuous Disclosure Obligations (“NI 51-102”).
- Management discussion and analysis for the year ended December 31, 2024, as required by section 5.1(2) of NI 51-102.
- Certification of the annual filings for the year ended December 31, 2024.
The company is actively working to resolve the issue and expects to be able to file the necessary reports upon completion of securing additional financing, restructuring its liabilities and continuing discussions with one of the company’s lessors. While these engagements are ongoing, there is no guarantee that financing or restructuring efforts will be successfully completed.
In response to the Annual Filings delay, the company has applied to the Ontario Securities Commission for a management cease trade order (“MCTO”) under National Policy 12-203 – Management Cease Trade Orders (“NP 12-203”) that will prohibit the management of the company from trading in the securities of the company until such time as the Annual Filings are filed. No decision has yet been made by the Ontario Securities Commission on this application. The commission may grant the application and issue the MCTO, or it may impose an issuer cease trade order if the Annual Filings are not filed in a timely fashion.
4Front continues to work toward completing its annual financial statements and expects to file the annual filings within sixty days of restarting its audit engagement and will issue a statement once the annual filings have been filed. The company has made all efforts and allocated all available resources to the preparation, completion, and filing of the annual filings. The company’s auditors have also made significant efforts to complete its audit of the annual financial statements. Until the company files the annual filings, it will comply with the alternative information guidelines set out in NP 12-203. The guidelines, among other things, require the company to issue bi-weekly default status reports for as long as the annual filings remain outstanding.
Until the company has filed the annual filings, members of the company’s management and other insiders are subject to an insider trading blackout. 4Front confirmed that, other than as disclosed in prior statements and material change reports, there have been no material business developments since the filing of the interim financial reports for the period ended September 30, 2024, on December 3, 2024. There are no insolvency proceedings involving the company.
About 4Front Ventures Corp.
4Front is a vertically integrated multi-state cannabis operator with operations in Illinois and Massachusetts and facilities in Washington. Since its founding in 2011, 4Front has built a reputation for high standards and low-cost cultivation and production methodologies. To date, 4Front has successfully brought to market more than 20 different cannabis brands and over 1,800 products, which are strategically distributed through its fully owned and operated Mission dispensaries and retail outlets in its core markets.
