4Front Ventures Q1 Revenue Increases 8% Sequentially to $17.0 Million – New Cannabis Ventures

4Front Announces First Quarter 2020 Results and Business Update

• Q1 2020 Systemwide Pro Forma Sales of $23.7m, an increase of 36% over Q4 2019.
• Robust consumer demand continues across all operating markets despite COVID-19.
• Company reaches final resolution with the Massachusetts Cannabis Control Commission with respect to legacy regulatory issues. The Company expects the agreement will clear the path for recreational licensing of its Massachusetts locations.
• Funded expansion plans underway in both Massachusetts and Illinois production facilities expected to be completed by Q4 2020.
• Company remains on pace to be cash flow positive in 2H 2020 and poised to show significant operating leverage in 2021.
• Company is in progressive discussions to strengthen its balance sheet through a financing/sale leaseback of its affiliated facilities in Washington state.

PHOENIX, AZ, July 14, 2020 /PRNewswire/ – 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (“4Front” or the “Company”) today announced its financial results for the First Quarter of 2020.

First Quarter 2020 Financial Results Highlights

• Total Systemwide Pro Forma Sales for the first quarter 2020 increased 36% quarter-over- quarter to $23.7m.
• IFRS Sales for the first quarter of 2020 increased 37% quarter-over-quarter to $17.7m.
• Gross profit for the first quarter was $9.7m.
• Adjusted EBITDA for the first quarter was a loss of $2.8m.

Business Update

Robust consumer demand continues across all operating markets despite COVID-19. All states where the Company operates have deemed cannabis operations as “essential businesses” during the pandemic.

Company reaches a resolution with the Massachusetts Cannabis Control Commission with respect to legacy regulatory issues. The Company expects the agreement will clear the path for recreational licensing of its Massachusetts locations.

Funded expansion plans underway in both Massachusetts and Illinois production facilities expected to be completed by Q4 2020. These upgrades represent Phase 1 of the Company’s expansion plans in two of its core markets which are expected to double the output of its Georgetown, Massachusetts facility and more than triple current output in Illinois.

Company remains on pace to be cash flow positive in 2H 2020 and is poised to show significant operating leverage in 2021. Having reduced corporate overhead expense by over 40%, the Company anticipates generating positive cash flow commensurate with final recreational licensing in Massachusetts and producing positive adjusted EBITDA in 2020.

Washington Financing/Sale Leaseback Update. As of May 31, 2020, 4Front’s balance sheet had cash and equivalents of $11.5m with total debt of $80.1m (excluding in-the-money convertible debt of $5.8m). The Company owns and controls highly attractive real estate in Washington state consisting of 176,000 square feet of state-of-the-art industrial space built for cultivation, production and distribution. The assets are encumbered by senior secured debt associated with Gotham Green Partners. A financing/sale and leaseback of these assets is expected to remove senior secured debt from its capitalization table, giving the Company flexibility to more freely pursue non or minimally dilutive project financing options. The Company is in progressive discussions with multiple partners on this transaction.

Management Commentary

Entering 2020, we have been laser-focused on leaning out and replicating our low-cost cultivation and production model in targeted states.

Leo Gontmakher, CEO of 4Front

We left the first quarter with a focused business model, streamlined cost structure and fortified balance sheet that has set the stage for us to accelerate growth across our core markets of Washington, Illinois, Massachusetts, Michigan and California.

Mr. Gontmakher added: “We are ecstatic to have reached resolution with the Massachusetts Cannabis Control Commission as it clears the way for our long-awaited approvals for adult-use licensing in the state. We continue to execute on our plans to not only flip to cash flow positive this year, but to set the stage to exit this year in a position to drive meaningful operating leverage in our business. With funded expansion already underway in Massachusetts and Illinois, we look forward to commencing construction of our Commerce, California facility before the end of the year. We are proving that our success in Washington can be replicated in every state in which we operate and are extremely confident in how the company is positioned as we enter this new season.”

(Please see Note Regarding Non-IFRS Measures, Reconciliation, and Discussion below.) (*Please see the Financial Statement section below, and the Company’s First Quarter 2020 Unaudited Condensed Consolidated Financial Statements and Management Discussion and Analysis (“MD&A”), available under the Company’s SEDAR profile, for more information.)

Additional Details

As of the date of the MD&A, there were the equivalent of 506,379,437 Class A Subordinate Voting Shares outstanding when calculated as if all share classes were converted to Subordinate Voting Shares. For further details regarding 4Front’s share structure, please see its profile at www.thecse.com.

Conference Call

The Company will also host a conference call and webcast on Tuesday, July 14, 2020 at 5:00 p.m. EDT to review its operational and financial results and provide an update on current business trends.

To join the call, dial 1-877-407-0792 toll free from the United States or Canada or 1-201-689-8263 if dialing from outside those countries. The webcast, which will include a slide deck, can be accessed at this link.

The call will be available for replay until Tuesday, July 21, 2020. To access the telephone replay, dial 844-512-2921 toll free from the United States and Canada, or 1-412-317-6671 if dialing from outside those countries, and use this replay pin number: 13706966.

Financial Statements

The condensed consolidated interim financial statements for the three months ended March 31, 2020 and 2019, have been prepared in accordance with IAS 34 – Interim Financial Reporting. These statements have not been reviewed by an auditor.

Note Regarding Non-IFRS Measures, Reconciliation, and Discussion

In this press release, 4Front refers to certain non-IFRS financial measures such as Systemwide Pro Forma Revenue and Adjusted EBITDA. These measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. 4Front defines Systemwide Pro Forma Revenue as total revenue plus revenue from entities with which the Company has a management contract, or effectively similar relationship (net of any management fee or effectively similar revenue) but does not consolidate the financial results of per IFRS 10 – Consolidated Financial Statements. 4Front considers this measure to be an appropriate indicator of the growth and scope of the business.

Adjusted EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization less share-based compensation expense and one-time charges related to acquisition and financing related costs, excluding fair value adjustments for biological assets. 4Front considers these measures to be an important indicator of the financial strength and performance of our business. The following tables provide a reconciliation of each of the non-IFRS measures to its closest IFRS measure.

About 4Front Ventures Corp.

4Front (CSE: FFNT) (OTCQX: FFNTF) is a national multi-state cannabis operator and retailer, with a market advantage in mass-produced, low-cost quality branded cannabis products. 4Front manufactures and distributes a portfolio of over 25 cannabis brands including Marmas, Crystal Clear, Funky Monkey, Pebbles, and the Pure Ratios wellness collection, distributed through retail outlets and their chain of strategically positioned Mission branded dispensaries.

Headquartered in Phoenix, Arizona, 4Front has operations in Illinois, Massachusetts, California, Michigan and Washington state. From plant genetics to the cannabis retail experience, 4Front’s team applies expertise across the entire cannabis value chain. For more information, visit 4Front’s website.

This news release was prepared by management of 4Front Ventures, which takes full responsibility for its contents. The Canadian Securities Exchange (“CSE”) has not reviewed and does not accept responsibility for the adequacy of this news release. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Original press release

Originally posted on 4Front Ventures Q1 Revenue Increases 8% Sequentially to $17.0 Million – New Cannabis Ventures via Cannabis Industry News

Multistate cannabis grower and retailer iAnthus Capital Holdings announced a restructuring support deal with a recapitalization component, giving the company an opportunity to reduce its outstanding debt.

The New York-based company with offices in Toronto received a demand for repayment on its secured debentures in June after defaulting on interest payments.

After a strategic review, iAnthus’ board “concluded that the recapitalization transaction represents the best available alternative to improve the company’s capital structure and to maximize and preserve value for the company and its stakeholders,” iAnthus said in a news release.

The restructuring support agreement announced Monday is supported by all of iAnthus’ secured lenders and more than 91% of unsecured debenture holders, the company said.

The deal would reduce iAnthus’ outstanding debt from nearly $169 million to about $101 million and provide $14 million in interim financing.

The company would also issue $20 million in new equity to its secured lenders and unsecured bondholders.

The deal is subject to court approval in Canada.

Interim CEO Randy Maslow said iAnthus has faced liquidity challenges stemming from a “decline in the overall public equity cannabis markets” combined with the impact of the COVID-19 pandemic.

The company trades on the Canadian Securities Exchange as IAN, but trading is currently suspended.

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george scorsis

Originally posted on via Cannabis Industry News

With revenue of $10.6 billion-$13 billion in 2019, sales of legal adult-use and medical marijuana in the United States topped spending on sleep aids, hard seltzer and toothpaste combined.

Total marijuana sales now exceed the National Basketball Association’s annual U.S. revenue and, by 2024, could surpass Americans’ annual spending on craft beer.

The data – published in the 2020 edition of the Marijuana Business Factbook – underscores the fact that the U.S. cannabis industry is already a major economic force, even though it has yet to reach its full potential.

Sharp sales increases in new medical marijuana programs as well as continued gains in recreational markets are expected to fuel much of the industry’s growth over the coming years.

Recently launched MMJ markets – including Florida, Maryland, Oklahoma and Pennsylvania – are booming and, thus, more than offsetting lost medical sales in markets that have legalized adult-use sales, such as Illinois, Massachusetts and Michigan.

MMJ sales in Florida and Oklahoma are expected to surpass $1 billion each by 2021, placing them among the most valuable and rapidly growing cannabis markets in the United States – medical or recreational.

On the adult-use side, sales in mature markets remain robust, while revenue in newly legalized states such as Illinois and Michigan is expected to grow quickly.

California’s massive market continues to struggle with high taxes, local licensing restrictions and an entrenched illicit market.

But conditions are expected to improve in the coming years as businesses adapt to the state’s unique regulatory environment and more municipalities allow recreational businesses to operate in their jurisdictions.

Further growth will come as more states legalize adult-use cannabis. Arizona and New Jersey could be the next to do so, with residents in both states set to vote on recreational ballot initiatives in November.

The coronavirus pandemic, however, has added a significant amount of uncertainty to the equation.

Though cannabis sales have proved remarkably resilient throughout the coronavirus pandemic, it remains to be seen how they’ll fare amid a prolonged economic downturn.

Eli McVey can be reached at [email protected]

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• Pure CBD Tincture, derived from organic, US-harvested hemp, lab-tested for quality.

• Clinically proven therapeutic effects.

• Relieves anxiety and stress

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• Regulates mood and sleep patterns

• Enhances focus and clarity
  
  
  

George Scorsis Liberty Health Sciences

Originally posted on via Cannabis Industry News

Hawaii lawmakers passed a bill allowing medical marijuana edibles, a move that could significantly boost the roughly $16 million-$20 million-a-year market.

The legislation has been sent to the desk of Gov. David Ige, a Democrat, who has been resistant to some cannabis policy reforms. The bill enjoyed strong support in the Legislature.

The Hawaii Cannabis Industry Association (HCIA) praised the Legislature’s action, which came in a session shortened by the coronavirus pandemic.

“Medical cannabis patients have been asking for alternative ways to take their medication other than inhalation since the first dispensary opened their doors,” according to a Facebook post by the HCIA.

“This is especially important in a COVID-19 world where lung and overall health are on the forefront of our minds.”

Edibles sales have been strong in many U.S. markets during the coronavirus crisis. And the cannabis industry has been bolstered by the fact that many states have categorized medical marijuana dispensaries as essential businesses.

The Hawaii legislation would take effect on Jan. 1, 2021, but the state health department would need to develop rules before edibles sales could begin, a dispensary owner told Big Island Now.

Hawaii currently has about 30,000 registered medical cannabis patients. The program is heavily regulated, with only eight vertically integrated licensees.

Marijuana Business Factbook projects that 2020 sales will reach $16 million-$20 million, up from $14 million-$17 million in 2019.

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• Pure CBD Tincture, derived from organic, US-harvested hemp, lab-tested for quality.

• Clinically proven therapeutic effects.

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• Enhances focus and clarity
  
  
  

George Scorsis website

Originally posted on via Cannabis Industry News

A new monograph from German health regulators that defines cannabis extracts (Cannabis extractum normatum) might require companies currently selling or planning to peddle these products in Germany to adapt their formulations.

The new entry in the latest version of the German pharmacopoeia (Deutsches Arzneibuch, DAB) went into effect June 1.

Before this document, full-spectrum cannabis extracts were considered legal in Germany, but neither the national nor the European pharmacopoeia defined them.

The German pharmacopoeia – binding only on a national level – has included a cannabis monograph since 2017 – but only for flower.

No European cannabis monograph exists, but a draft is in the works. If ever published, a European cannabis monograph would facilitate standardization across the continent.

To comply with the cannabis extracts rules, Canadian-based Tilray changed the carrier oil of the full-spectrum extract THC25, which it sells in Germany, Apotheke Ad-Hoc reported.

According to the report, Tilray THC25 oil started using medium-chain triglycerides (MCT) as carrier oil instead of grape seed oil, which the company had been using.

THC25 is a full-spectrum oil that has 25 milligrams/milliliters of THC and less than 0.5 milligrams/milliliters of CBD, sold in 25-milliliter bottles.

Pharmacists dispensing magistral preparations in Germany – the category under which Tilray oils are currently sold – must, among other things, test the products before handing them over to patients.

According to Apotheke Ad-Hoc, Tilray will continue providing the same THC “rapid test” as before because it also works with the new formulation, delivering the result in only a few minutes. This is much faster than a thin-layer chromatography (TLC).

In theory, pharmacists should conduct a TLC to test cannabis extracts, but several regional German health authorities tolerate simpler alternatives.

Sita Schubert, secretary general of the European Medicinal Cannabis Association, recently recommended lowering the minimum THC called for in the new German monograph for cannabis extracts from 1% to 0.2%.

The 1% THC lower limit in the monograph means that only products with at least that percentage of THC qualify as medicinal cannabis extracts.

According to the EUMCA, this could deny younger patients “access to their existing treatments,” and “the physician, not the policymaker … should be making the decision on the appropriate course of treatment and formulation for their patient.”

Alfredo Pascual can be reached at [email protected]

Pure CBD Hemp Oil

• Pure CBD Tincture, derived from organic, US-harvested hemp, lab-tested for quality.

• Clinically proven therapeutic effects.

• Relieves anxiety and stress

• Eliminates chronic pain and aches

• Regulates mood and sleep patterns

• Enhances focus and clarity
  
  
  

George Scorsis website

Originally posted on via Cannabis Industry News

iLAVA of Arizona owns 100% of a cultivation and processing license and is now requesting proposals for a financed operator with cultivation experience to enter one of America’s top cannabis markets. Our ideal partner must be focused on quality control, compliance, and has experience designing and building out cannabis cultivation operations. The Arizona medical marijuana program and upcoming adult use initiative do not limit cultivation canopy size or limit plant count. Arizona’s population is over 7.2 million as of 2019.

Over 190,000 lbs. of medical marijuana is sold per year in the Arizona cannabis market. In May 2020, cannabis sales in Arizona’s medical dispensaries reached $93 million, growing seven percent from April. There are currently over 245,000 registered medical marijuana patients in Arizona and patient cards are valid for 2 years.

The iLAVA management team opened The Downtown Dispensary in 2013 which has won Best of Tucson® in 2015, 2016, 2017, and 2019. The iLAVA team currently operates 2 dispensaries and an industrial medical marijuana cultivation/production facility with 120+ employees in Tucson. iLAVA products are also distributed in 80+ dispensaries statewide including the bestselling topical in Arizona, iLAVA Touch, in addition to our vape cartridges & extracts. Arizona currently has 126 operating dispensaries statewide.

The iLAVA distribution network and the product expertise of our retail staff will be available to our potential partners. This opportunity includes cultivation and can include marijuana product manufacturing & distribution depending on negotiated deal terms.

Due to Arizona’s medical marijuana laws and our internal practices, any qualified individuals must be able to pass a criminal background check and provide proof of funding upon request.

This opportunity is being listed by the iLAVA management  team (Moe Asnani & Chip Boyden) and not by a broker or third party.

Interested parties can email their proposals to enter the Arizona market at [email protected].

This is a paid post. Contact [email protected] for more information.

Pure CBD Hemp Oil

• Pure CBD Tincture, derived from organic, US-harvested hemp, lab-tested for quality.

• Clinically proven therapeutic effects.

• Relieves anxiety and stress

• Eliminates chronic pain and aches

• Regulates mood and sleep patterns

• Enhances focus and clarity
  
  
  

additional information, George Scorsis

Originally posted on via Cannabis Industry News

Plus Products Launches Highest Concentrated Cannabis Gummy in California with New HI-CUBES Brand – New Cannabis Ventures

SAN MATEO, Calif., July 14, 2020 (GLOBE NEWSWIRE) — Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF) (the “Company” or “PLUS”), a cannabis and hemp branded products company in the U.S., today announced the launch of its new HI-CUBES brand into the California adult-use market.

Highlights

• Most concentrated gummy product (THC by volume) available in the California market.¹
• 100% whole plant, full-spectrum oil delivers cannabinoids, flavonoids and aromatic terpenes for a more dynamic high.
• Great tasting and guilt-free: only 5 calories and less than 1g of sugar per cube.
• New line-up will initially include two high THC gummy products specifically formulated for cannabis users looking for a stronger psychoactive effect.

HI-CUBES is the third edibles brand launched by PLUS, well known for its core brand of high-quality and precisely dosed gummies and mints.

With 10mg of THC packed into each 5 calorie serving, HI-CUBES are the most concentrated gummy products available within the California market.¹ Manufactured with 100% whole-plant, full-spectrum oil, the product delivers an array of cannabinoids, flavonoids and aromatic terpenes to create a powerful effect for consumers looking for an intense cannabis experience. This new line offers consumers the same great-tasting and guilt-free product experience as PLUS gummies, with less than 1g of sugar per cube.

Following the launch of our PLUS CBDRelief brand this past February, we are excited to further expand our portfolio to ensure that consumers looking for all different types of experiences can turn to our brands for their cannabis needs.

Jake Heimark, Co-founder and CEO.

The new brand, HI-CUBES, initially includes two flavors – Indica Plum and Sativa Strawberry – each with 10mg of THC per gummy, and 100mg of THC per package. These products are currently available in over 40 licensed retailers across the state of California.

_{(1) According to internal market research.}

Availability

California THC: PLUS cannabis-infused edibles are currently available in over 360 licensed retailers across the state of California. PLUS CBDRelief cannabis-infused gummies are currently available in over 240 licensed retailers across the state of California. HI-CUBES cannabis-infused gummies are expected to continue rolling out to licensed retailers across the state in the coming weeks.

Nevada THC: PLUS cannabis-infused gummies are currently available in licensed retailers throughout Las Vegas.

National Hemp CBD: PLUS 100% hemp CBD-infused gummies are available for purchase in 43 states across the country at plusproducts.com.

About PLUS

PLUS is a hemp and cannabis food company focused on using nature to bring balance to consumers’ lives. PLUS’s mission is to make cannabis safe and approachable – that begins with high-quality products that deliver consistent consumer experiences. PLUS is headquartered in San Mateo, CA.

Original Press Release

Originally posted on Plus Products Launches Highest Concentrated Cannabis Gummy in California with New HI-CUBES Brand – New Cannabis Ventures via Cannabis Industry News