4Front Inc. (OTCQB: FOUR) (CSE: 4FR), formerly 4Front Holdings Inc., is a publicly traded company currently engaged in the cultivation, production and sale of cannabis concentrates, cannabis products and derivative products in Canada. The Company operates under four business segments: Cultivation, Facility Services, Acquisition and Research.
4front is the largest grower, manufacturer and distributor of cannabis-based products in North America with a portfolio of 28 brands and more than one billion units sold. Founded in 2009, 4front is the pioneer in the cannabis industry in Canada. The company’s strategic focus on providing a complete cannabis solution that serves individuals, medical professionals and the medical community has positioned it as a leader in the $16.7 billion global cannabis market.
4Front Ventures reports financial results for the first quarter of 2021 and update on itsbusiness
- System-wide pro-forma revenue for the first half of the year was $31.4 million in the fourth quarter of 2021, up 26% from the fourth quarter of 2020.
- Adjusted EBITDA for the first quarter of 2021 was $5.9 million, good for an adjusted EBITDA margin of 19%.
- Confirmed guidance for fiscal year 2021 of $170 million to $180 million in pro forma system-wide revenue and $40 million to $50 million in adjusted EBITDA.
- The Company’s existing mature licensing projects represent long-term revenue and EBITDA opportunities of $650 million and $250 million, respectively.
- Today, May 24, 2021, a conference call will be held at 5 p.m. AND
PHOENIX, Arizona, 24. May 2021. /PRNewswire/ – 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (4Front or the Company), a vertically integrated multi-state cannabis operator and retailer, today announced its financial results for the first quarter ended December 31. March 2021 announced. All financial information is expressed in U.S. dollars unless otherwise indicated. First quarter 2021 (Q1 2021) Key financial results
- Pro forma revenues for the entire system were $31.4 million.
- Revenues reported in accordance with GAAP were $23.0 million.
- Adjusted EBITDA was $5.9 million.
Key figures of the operation
- Retail sales and market penetration exceeded all internal forecasts and the positive momentum continued into the second quarter.
- The company’s 170,000-square-foot, state-of-the-art manufacturing facility in Commerce, California, is scheduled to open in the second quarter of 2021.
- A certificate of commissioning is expected within the next ten days.
- Signed a distribution agreement with Nabis, a major cannabis wholesaler with over 750 stores in California.
- The company has received a building permit and business license from the Town of Brookline for its third adult clinic in Massachusetts.
- Grand opening in June 2021, subject to final approval by the Cannabis Control Board.
- Obtained land and financing for a new cultivation and production facility in Illinois; opening is scheduled for the third quarter of 2021.
Remark of the management In the first quarter, our strategy to replicate low-cost manufacturing methods in new markets began to take shape and expand at scale in Massachusetts, Illinois and California, extending the momentum we created in 2020.
Leo Gontmacher, Director of 4Front
By utilizing cultivation and production techniques developed for our Washington DC plant, we have been able to increase the yield and quality of our Illinois and Massachusetts products, allowing us to supply adult pharmacies to meet the ever-increasing demand in these markets. As production increases, we intend to sell our production surplus to wholesalers as well. Mr Gontmacher added: Continued positive momentum following the launch of adult sales in late 2020 in Georgetown and Worcester, Massachusetts, as well as the exceptionally successful launch of our dispensary in Calumet City, Illinois in December, contributed to strong sequential revenue growth in the first quarter, which exceeded all internal expectations. With the completion and opening of our manufacturing facility in Commerce, California in just a few weeks, we look forward to bringing our line of high quality branded products to market soon. As the largest legal cannabis market in the world, California offers a unique opportunity to establish an efficient operation and create incredible products that can be replicated across the country. Mr. Gontmacher closed by saying: We now have revenue generating locations in California, Illinois, Massachusetts, Michigan and Washington, D.C., and are poised for further growth as part of our 2021 expansion strategy. We maintain our financial expectations for the year and expect pro forma system-wide revenues of $170 million to $180 million and adjusted EBITDA of $40 million to $50 million. Updates and business development System-wide pro forma sales increased in the first quarter of 2010. Revenue for the fourth quarter of 2021 increased 26% to $31.4 million from $25.0 million in the fourth quarter of 2021. Quarter 2020. Retail sales and product launches exceeded internal expectations. This increase was primarily due to revenue growth at two pharmacies in Massachusetts following the start of adult sales in the second half of 2020, as well as the very successful start of a pharmacy in the Town of Calumet, which opened in December 2020. Adjusted EBITDA for the first quarter of 2021 was $5.9 million, comparable to the fourth quarter of 2020, good for an adjusted EBITDA margin of 19%. EBITDA margin for the quarter was negatively impacted by the company’s production growth in Illinois. Although work to triple the size of the flowering canopy in the company’s Illinois acreage was completed on time and on budget, the first harvest from the expanded facility was not completed until April, resulting in a one-time increase in the average cost per gram produced in the first quarter of 2021. During the first month of the second quarter, 4Front more than tripled its production in Illinois and expects significant margin improvement in the second quarter. The fully funded, state-of-the-art 170,000 square foot production facility in Commerce, California is nearing completion and is on track to serve the California cannabis market beginning in the second quarter of 2021. The company’s first product line will consist of infused edibles, infusions, capsules and pre-rolls including Marmas™, Pebbles™, Chewees™, Hi-Burst™, Verdure™ and Terp Stix™. The company has entered into a distribution agreement with Nabis, a leading supplier of cannabis products. Nabis distributes its brands to more than 750 pharmacies in California, covering 99% of licensed retailers in the state. The company’s third pharmacy in Massachusetts, in Brookline, was completed. The company also announced that it has completed all municipal procedures in the City of Brooklyn, including obtaining a use permit. After final approval by the Cannabis Control Board, the official opening is scheduled for June 2021. In Illinois, the recently announced development of our new cultivation and production facility is on schedule; construction will begin in the third quarter of 2021. The first phase, a 258,000 square foot building with a 65,000 square foot canopy for flowering plants and approximately 70,000 square feet of production space, is expected to open in the third quarter of 2021. Conference call The company will announce a conference call and webcast on Monday, May 24, 2021 at 5:00 p.m. AND to discuss its operational and financial results and provide updates on current business developments. To join the call, dial 1-877-407-0792 for a toll-free call from the U.S. or Canada, or 1-201-689-8263 for calls from outside those countries. The webcast can be accessed via this link. The conference call is available until Monday, 31. That 2021, be included. To access the replay, call toll-free 1-844-512-2921 from within the U.S. and Canada, or 1-412-317-6671 if calling from outside the U.S. and Canada, and use the replay PIN : 13719936. About 4Front Ventures Corp. 4Front (CSE: FFNT) (OTCQX: FFNTF) is a multi-state, national cannabis operator and retailer with a market advantage in high quality, low cost, mass produced, branded cannabis products. 4Front produces and distributes a portfolio of more than 21 cannabis brands, including Marmas, Crystal Clear, Funky Monkey, Pebbles and the Pure Ratios wellness collection, which are distributed through retail outlets and a network of strategically located Mission-branded dispensaries. 4Front is headquartered in Phoenix, Arizona, with offices in Illinois, Massachusetts, California, Michigan and Washington. From plant genetics to cannabis retailing, the 4Front team applies its expertise to the entire cannabis value chain. For more information, see www.4frontventures.com. Financial Information Disclosure of non-GAAP measures, reconciliation and discussion In this press release, 4Front refers to certain non-GAAP financial measures, such as. B. Pro forma revenues and adjusted EBITDA for the entire system. These measures are not standardized as required by GAAP and may not be comparable to similar measures used by other issuers. 4Front defines the System’s pro forma income as total income plus income from entities with which it has a management contract or factually similar relationship (net of management fees or factually similar income), but does not consolidate financial results in accordance with U.S. GAAP ASC 810. 4Front considers this figure to be a reasonable indicator of its growth and size. Adjusted EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization, less share-based compensation expense and one-time acquisition-related costs, financing-related costs and other non-recurring costs. 4Front considers these measures to be a key indicator of the strength and financial performance of our business. This press release has been prepared by the management of 4Front Ventures. It is solely responsible for the content. The Canadian Securities Exchange (CSE) has not reviewed this communication and assumes no responsibility for its accuracy. Neither the ESC nor its regulatory service provider (as that term is defined in ESC policy) accepts responsibility for the adequacy or accuracy of this communication. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. 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