PHOENIX – 4Front Ventures Corp., a vertically integrated, multi-state cannabis operator and retailer, entered into an agreement with Eight Capital, as lead agent and sole bookrunner, on behalf of a syndicate of agents to be formed to act as agents on a “best efforts” basis to sell up to 47,620,000 units of the Company at a price of C$0.105 per Unit for gross proceeds of up to C$5,000,100.
Each Unit will consist of one class A subordinate voting share in the capital of the Company and one SVS purchase warrant. Each Warrant will entitle the holder thereof to purchase one additional SVS for a period of 60 months following the closing of the Offering at an exercise price of C$0.13 per Warrant Share. Subject to the listing requirements of the Canadian Securities Exchange (the “CSE”), it is the intention of the Company to have the Warrants listed on the CSE upon closing of the Offering.
The Company has granted the Agents an option to offer for sale up to an additional 15% of the Units, at the Offering Price, exercisable in whole or in part at any time for a period of up to 48 hours prior to the closing date of the offering.
The Units are being offered and sold in this Offering pursuant to the Company’s shelf registration statement on Form S-3 (No. 333-276069) declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on May 8, 2024 and accompanying prospectus of the same date, as further supplemented by the preliminary prospectus supplement, dated June 26, 2024, and pursuant to the listed issuer financing exemption from Canadian prospectus requirements under Part 5A of National Instrument 45-106 – Prospectus Exemptions.
The Units offered under the Listed Issuer Financing Exemption will not be subject to resale restrictions pursuant to applicable Canadian securities laws. There is an offering document that can be accessed under the Company’s profile at www.sedarplus.ca and on the Company’s website. Prospective investors should read this offering document before making an investment decision.
The closing of the Offering is subject to receipt of all necessary regulatory approvals, including the approval of the CSE. The closing of the Offering is expected to occur on or about July 10, 2024, or such other date as agreed to by the Company and the Agents.
The net proceeds of the Offering will be used to purchase equipment, inventory, cultivation inputs, and additional retail licenses and complete the buildout of the Company’s new retail locations.
About 4Front Ventures Corp.
4Front is a national, vertically integrated multi-state cannabis operator with operations in Illinois and Massachusetts and facilities in Washington.
