4Front Ventures Boasts Positive Q1 As It Expands To Illinois & Increases Sales In MA & California
Author: Nicolás Jose Rodriguez | May 15, 2023 10:47pm
4Front Ventures Corp.,(CSE:FFNT) (OTCQX: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
Photo by Dan Meyers on Unsplash.
Posted In: CSE:FFNT FFNTF
