4Front Ventures Boasts Positive Q1 As It Expands To Illinois & Increases Sales In MA & California

4Front Ventures Corp.,FFNT FFNTF a vertically integrated cannabis operator, and retailer, reported its financial results late Monday for the first quarter that ended March 31, 2023

Main Takeaways

• 4Front's revenue growth was driven by increased sales in California and Massachusetts, offset by seasonality and market compression.
• Adjusted EBITDA was lower compared to the previous year but is expected to improve as the California business becomes a positive contributor and operations in Illinois expand.
• Systemwide Pro Forma Revenue for Q1 2023 reached $34.8 million, a 7% increase compared to Q1 2022.
• GAAP revenue grew by 17% year-over-year to $30.4 million.
• Adjusted EBITDA for Q1 2023 was $3.5 million, down from $7.4 million in Q1 2022.
• The company achieved positive operational cash flow in all core markets except California.
• As of May 15, 2023, the company has over 648 million subordinate voting shares outstanding.

Business Highlights

• 4Front expanded its operational capabilities in Illinois, completing construction on its Matteson facility, the largest cultivation and manufacturing facility in the state.
• The company acquired a third retail dispensary license in Chicago and is in discussions for several additional licenses in Illinois.
• Market share in Massachusetts increased significantly following product launches and cultivation process improvements.
• The company launched new vape products and introduced the 1988 brand in Massachusetts, which has outsold third-party products in Mission retail stores.
• Kris Krane, a cannabis industry trailblazer, and 4Front co-founder, was appointed to the Board of Directors.
• 4Front entered into a non-binding term sheet to extend the maturity date and reduce the interest payable on its senior secured debt, providing an opportunity to raise over $30 million in financing.
• The company plans to expand its product offerings under the 1988 and Koko Gemz brands.

Price Action

4Front's stocks were trading 2.06% lower at $0.16 per share at Monday's market close. 

See Also

• 4Front Ventures Signs Non-Binding Term Sheet For Extension Of Senior Secured Debt
• Exclusive: 4Front Ventures Corp. Launches Flavored Blunts In The Infused Pre-Roll Category

Photo by Dan Meyers on Unsplash.