4Front Ventures Secures $10 Million Credit Facility to Amplify Illinois Operations

LOS ANGELES– 4Front Ventures Corp. a multi-state, vertically integrated cannabis operator and retailer, has publicized its recent procurement of a $10 million senior secured credit facility agreement. The agreement is with ALT Debt II, LP, an affiliate of the financial powerhouse, Altmore Capital. This strategic move comes as 4Front seeks to channel these funds into bolstering its retail footprint in Illinois. The investment is synchronizing with the company’s impending inauguration of a state-of-the-art cultivation and processing facility in Matteson.

Leo Gontmakher, 4Front’s Chief Executive Officer, expressed optimism regarding the venture. He remarked, “This financial augmentation is pivotal in positioning 4Front as a dominant figure in both retail and wholesale sectors in Illinois. Our impending Matteson facility is expected to be operational by year’s end. This promises to support a surge of over 400% in our state production capacity within the forthcoming year. Presently, we have two operating Mission dispensaries. We’re charting an ambitious course to launch 10 retail stores by the close of 2024. This capital infusion is undeniably a monumental stride towards that aim. Combining Matteson’s augmented production potential with our goal of 10 dispensaries could feasibly double the company’s overall sales.”

Echoing the enthusiasm, Michael Villapiano, Vice President at Altmore Capital, articulated, “It’s a privilege to collaborate with 4Front. Their track record validates their efficiency as one of the industry’s paramount operators. Altmore is eager to back their robust blueprint for sustainable growth, especially their expanding retail influence in Illinois, aptly complemented by Matteson’s commendable production prowess.”

From a finance standpoint, the terms of the Credit Facility are worth noting: the principal will accrue interest annually, calculated as the greater of (i) the WSJ Prime Rate plus 7% or (ii) 15.5%. This interest is to be paid monthly, with principal payments deferred for six months post-funding. Contingent on the company’s ability to extend the maturity of specific subordinate debts, the maturity date of this Credit Facility is projected for September 30, 2026. Comprehensive transaction particulars are accessible in the company’s official filings.