Fort Capital Partners is pleased to announce that 4Front Holdings, LLC (“4Front”) has entered into a business combination agreement with Cannex Capital Holdings Inc. (CSE: CNNX) (OTCQX:CNXXF) (“Cannex”) (the “Transaction”). Under the terms of the transaction, 4Front shareholders will own approximately 67% of the shares of the combined company.
Cannex security holders have voted overwhelmingly in favor of the business combination, which has also received conditional approval from the Canadian Securities Exchange. Based on the trading value of Cannex at the close of business on April 19, 2019, the combined company, which upon closing will be renamed 4Front, would have a market capitalization of approximately C$1.2 billion.
Fort Capital Partners provided strategic advice to 4Front management with respect to a broad range of matters relating to the company’s funding and listing options, including the Transaction and a private placement of $31 million that closed in October 2018.