Phoenix-based cannabis company 4Front Ventures Corp. says it's well situated for expansion through the rest of the year after selling its stakes in noncore retail licenses along with a $4 million financing commitment will fully fund the company and give it positive cash flow for the second half of 2020.
The financing comes through a private placement of convertible debt led by New York-based Navy Capital and was contingent upon the sale of retail licenses in Pennsylvania and Maryland, which will bring in more than $18 million.
The company says it plans to use the money from those divestitures to pay off up to $10 million in debt, which will help it streamline its costs as it turns its focus to core markets in California, Illinois, Massachusetts and Michigan.
"This is a watershed moment for our company,” 4Front CEO Leo Gontmakher said in a statement.
