4Front, a leading cannabis company, has announced on Friday May 1, 2020 that the company has successfully secured 22 Million USD of New funding. According to the details released by the PR Newswire News Agency, the company has said that the secured funding would be used to accomplish the company’s financial objectives in the second half of 2020.
The company has further said that it will raise 4 Million USD through private placement. The placement for the funding is scheduled to close on May 4, 2020.
The company has gained a reputation of being one of the credible cannabis company in the highly competitive market of the US. The company is now producing 300 SKUs and 25 different products across the United States. 4Front focus on manufacturing low-cost and quality production at scale to masses.
Chief Executive Officer of 4Front, Leo Gontmakher said, “This is a watershed moment for our company. We believe these non-core divestitures, combined with our private debt placement, put the Company in the enviable position of not needing additional capital to become cash flow positive.”
Our commitment to a lean corporate structure and focused execution allows us to achieve self-sufficient operations while minimizing dilution to our shareholders. The momentum in our business is strong and we can now turn our complete attention to maximizing growth in our core geographies and expanding our vertical operations to take a meaningful market share in nascent adult-use markets,” Gontmakher further added.
Sharing his thought on the company’s funding, Gulati of Navy Capital said, “We are impressed with 4Front’s focus on long-term, sustainable growth and its ability to operate an efficient and lean business during these uncertain times. We believe their low-cost, high-yield cultivation and production facilities in Washington, Massachusetts and Illinois are replicable across multiple geographies and well-suited to driving growth at scale in a production-led industry. We are delighted to support the Company in its next phase of growth.”
