4Front to receive lump-sum settlement with respect to one of its historical revenue-share contracts
VANCOUVER, British Columbia and PHOENIX, Aug. 6, 2019 /CNW/ -- 4Front Ventures Corp. (CSE: FFNT) ("4Front") today debuts on the Canadian Securities Exchange ("CSE") under the ticker symbol "FFNT." In addition, the company has agreed to terms of a settlement agreement in respect to amounts owed to it under one of its many historical advisory and licensing agreements.
CSE Debut and Conference Call
4Front on July 31, 2019, announced the completion of its merger with Cannex Capital Holdings Inc. 4Front will begin trading on the CSE today under the new ticker symbol "FFNT." Now that trading has begun on the CSE, the company is working on becoming quoted on the OTC in the United States. Further updates on the OTC will be forthcoming as more information becomes available.
The company held its first investor conference call on Friday. The transcript of the call is available on 4Front's website. A recording of the call will be available until Aug. 9, 2019, by dialing 1-844-512-2921 toll free from the United States and Canada, or 1-412-317-6671 if dialing from outside those countries, and using this replay pin number: 13693368.
4Front Agrees to Settle Legacy Advisory Contract
4Front, which began in 2011 as an advisory firm before evolving into the operations-focused, multi-state cannabis company it is today, has several historical advisory agreements still in place. These consulting agreements provide 4Front an ongoing share in revenue (typically 5%) of dispensary operators for which 4Front helped obtain licenses and establish operations.
As an advisor, 4Front ultimately helped obtain more than 60 cannabis-operations licenses across 10 states. This latest settlement brings the total amount in settled or arbitrated legacy contract awards to approximately $13 million, and leaves a significant majority of 4Front's historical advisory and licensing contracts still in effect.
"I view these contract settlements as just rewards for our efforts in helping shape the cannabis industry during its formative years. While we consider legal avenues a last resort, we have an obligation to enforce these contracts," said Josh Rosen, CEO of 4Front Ventures. "In addition to the potential for additional revenue and settlements, one benefit to our consulting roots is our large network—we've also acquired controlling stakes in three former clients, and that's an avenue we'll continue to explore."
About 4Front Ventures Corp.
4Front is a cannabis company designed for long-term success and built upon battle-tested operating capabilities, experienced and aligned leadership, a strategic asset base, and a commitment to being a magnet for talent. From plant genetics to the cannabis retail experience, 4Front's team can apply expertise across the value chain. 4Front has invested heavily to assemble a comprehensive collection of management skills and hands-on operating expertise to capitalize on the unique growth opportunity being afforded by the increased legalization of cannabis. For more information, visit 4Front's website.
This news release was prepared by management of 4Front Ventures, who take 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.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in 4Front Ventures' periodic filings with Canadian securities regulators. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar expressions, are forward-looking statements.
Forward-looking statements may include, without limitation, statements related to future developments and the business and operations of 4Front Ventures, developments with respect to legislative developments in the United States and the proposed trading dated of the resulting issuer.
Although 4Front Ventures has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under U.S. federal laws; change in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. 4Front Ventures disclaims any intention or obligation to update or revise such information, except as required by applicable law, and 4Front Ventures does not assume any liability for disclosure relating to any other company mentioned herein.