Cannabis Operator 4Front Ventures Issues Restricted Stock Units Following Credit Facility Announcement

Multi-state cannabis operator and retailer 4Front Ventures Corp. FFNT FFNTF  announced the issuance of restricted stock units (RSUs) in connection with its recent $10-million senior secured credit facility agreement.

The Phoenix, Arizona-based company will issue 15.9 million RSUs to ALT Debt II, LP, an affiliate of Altmore Capital.

Each RSU will convert into one Class A subordinate voting share of the company upon the occurrence of specific conditions outlined in the RSU agreement.

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The issue price for the RSUs is about 25 cents per RSU. If, during a Distribution Event, the number of Shares underlying the RSUs falls below 2.12% of the fully diluted Shares of the Company, the company will issue additional RSUs to ALT Debt II, LP to make up the deficiency, with each additional RSU issued at the closing market price on the Canadian Securities Exchange on the trading day before issuance.

Additionally, 4Front Ventures has restructured a convertible promissory note entered into with Navy Capital Green Fund, Navy Capital Green Co-Invest Fund LLC, and HI 4Front LLC, on Oct. 6, 2021.

Under the new terms, payment obligations will be deferred from Oct. 6, 2023, to Oct. 6, 2024. The interest rate has been revised from 6% to 10% calculated on a simple interest per annum basis and the conversion price has been adjusted from $1.03 to 23 cents per Class A subordinate voting share, per a press release.

Price Action: FFNTF shares were trading up 2.22% at $0.23 per share on Tuesday afternoon. Did you miss the first wave of cannabis investments? Don’t make that mistake again.
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