October 7th, 2021. 4Front Ventures Corp. (“4Front” or the “Company”) (CSE:FFNT; OTCQX:FFNTF), a US-based vertically-integrated Multi-State Operator (“MSO”), announced the acquisition of New England Cannabis Corporation (“NECC”), a state-of-the-art cannabis cultivator based in Holliston, Massachusetts for US$55 million (the “Transaction”).
The acquisition of NECC’s fully operational 55,000 sq.ft. licensed cultivation facility will be immediately accretive to 4Front and strengthens 4Front’s expanding footprint in Massachusetts. The acquisition will more than double 4Front’s total flower canopy in the region to over 30,000 sq.ft., with potential for an additional 10,000 sq.ft. of canopy. The production from the NECC facility will supplement products sold through 4Front’s existing dispensaries in the State.
The purchase price will be paid by way of a combination of cash, Subordinate Voting Shares of 4Front, and a Sellers Note. The cash portion will be funded through the issuance of a US$15 million Convertible Note led by existing 4Front investor, Navy Capital Green Management LLC.
“The acquisition of New England Cannabis reinforces our core thesis of bringing scaled, low-cost production and operational depth to attractive, nascent, adult-use cannabis markets” said Leo Gontmakher, Chief Executive Officer of 4Front. “The addition of NECC’s impressive operations will increase our canopy, kitchen capacity, and add to our extraction capabilities overnight, greatly bolstering our position in the Massachusetts market to become a leading wholesaler of our full suite of products and brands. This acquisition firmly anchors our foothold in the Northeast, and NECC’s state-of-the-art facility will help to drive our growth in the years ahead as we execute on our goal of achieving dominant market share in every geography we operate.”
Fort Capital Partners acted as Financial Advisor to 4Front on the Transaction.