4Front Ventures Announces Accretive Acquisition of Massachusetts Based New England Cannabis Corporation 

ARIZONA:  4Front Ventures Corp., a vertically-integrated, multi-state cannabis operator and retailer, today announced that it has signed definitive agreements on October 6, 2021, to acquire New England Cannabis Corporation (“NECC”), a best-in-class cannabis cultivator, with state-of-the-art facilities based in Holliston, Massachusetts (the “Transaction”). Upon closing, the Transaction is expected to be significantly accretive to the Company’s EBITDA expectations for 2022 and will immediately scale 4Front’s presence as a dominant wholesaler and producer in the State.

Massachusetts’ competitive adult-use cannabis market is rapidly growing and 4Front has already introduced its full suite of popular brands in the State which have achieved wide-scale consumer support. The Company expects the acquisition of NECC to significantly expand 4Front’s strategic position and enable broader market penetration of 4Front’s diverse range of low-cost, high-quality products and brands.


 

    • Expected to add significant accretion to 2022 EBITDA and beyond

    • More than doubles 4Front’s total flower canopy in important limited-license state of Massachusetts

    • Fully operational 55,000 sq. ft. cultivation facility adds scale and depth in the State

    • Cash consideration fully financed following closing of US$15 million convertible note offering led by Navy Capital

    • Closing is subject to approval by the Massachusetts Cannabis Control Commission


As a technological leader within the industry and one of the newest independent cannabis companies in Massachusetts, NECC’s fully operational 55,000 sq. ft. licensed cultivation facility strengthens 4Front’s expanding footprint in this important limited-license state. The Transaction will more than double 4Front’s total flower canopy in Massachusetts to over 30,000 sq. ft, with further expansion potential for up to an additional 10,000 sq. ft. of canopy, and will approximately triple 4Front’s kitchen, processing and distribution space. The NECC facility will supplement the products sold through 4Front’s existing “Mission” dispensaries and further strengthen the Company’s presence in the Massachusetts wholesale market.

“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. I look forward to working with NECC’s seasoned team and leveraging their extensive operational experience as we continue to scale.”

Transaction Terms & Approvals

4Front has entered into agreements to acquire 100% interest of NECC for total consideration of US$55 million. The purchase price will be funded through the issuance to the seller of 25 million subordinate voting shares of the Company (“SVS”) and US$25 million of cash. The cash portion will be funded through proceeds raised from a US$15 million convertible notes offering, led by Navy Capital, a vendor take back note and balance sheet cash.

  • The convertible notes have a maturity date of 36 months following their date of issuance and bear interest at a rate of 6.0% per annum, payable annually.

  • Investors can elect at any time to convert their outstanding balance into SVS at a conversion price equal to US$1.03.

Subject to receipt of regulatory approval and the satisfaction or waiver of customary closing conditions, the Transaction is expected to close in the fourth quarter of 2021.

Fort Capital Partners acted as sole financial advisor to 4Front on the Transaction. Evmarc Advisors acted as financial advisor to NECC on the Transaction.

Burns & Levinson Hosts Fifth Annual State of the Cannabis Industry Conference on September 28, 2021

MASSACHUSETTS: August 31, 2021 – Burns & Levinson will host its fifth annual “State of the Cannabis Industry” conference, which will focus on critical issues in the multi-billion dollar cannabis industry, on September 28, 2021, from 9:30 a.m. to 5:30 p.m. ET. The conference will be held in person at the Westin Waltham Boston, and all attendees, speakers and staff must provide proof of vaccination. A live stream option will also be available.

 

The conference will feature an interview with Commissioner Steven Hoffman, Chairman of the Massachusetts Cannabis Control Commission, in an exclusive one-on-one Q&A with Frank A. Segall, founder and Chair of the Cannabis Business & Law Advisory Group at Burns & Levinson.

The expert panels and Q&A sessions will tackle a wide range of issues impacting the cannabis industry, including regulatory and legislative issues, capital markets, M&A and investments, e-commerce strategies and opportunities, and trends and developments in the marketplace.

“When we launched our conference five years ago, it was the first event of its kind with a specific focus on showcasing cannabis industry pioneers and sharing their experiences and expertise with our audience. It has since grown to attract industry leaders from all segments of the cannabis industry, including major capital market sources who are helping to fuel its growth. The conference has become a best-in-class forum and networking event, and we are excited and honored to be regarded by our industry peers as one of the leading law firms in the nation at the forefront of what comes next,” said Segall.

“We love bringing people together at this conference to make connections, develop partnerships and learn from their peers and industry leaders. We are especially looking forward to gathering safely in person, after being all virtual last year,” added Scott Moskol, who founded and chairs Burns & Levinson’s Cannabis Business & Law Advisory Group with Segall.

The current conference sponsors include: CohnReznick, HUB International, Cannabis Co-Op Fund L.P., KreditForce, KindTap, Opus Consulting, Douglas Washing and Sanitizing Systems, Emerald Media Group, Needham Bank, AdaptiveHR, Agrify, Elevate Northeast, FlowerHire, Lighthouse Biz Solutions, LLC, and Young America Capital.

Burns & Levinson was the first major Boston corporate law firm to develop a cannabis business practice, and has been advising cannabis businesses, entrepreneurs and investors across the country for nearly a decade. The firm has unrivaled experience in cannabis and hemp/CBD business formation and corporate structuring, private placements, venture capital, M&A, securities, banking issues, fund formation, debt and equity financing, restructuring and receiverships, real estate acquisitions and leasing, intellectual property protection, 280E taxation issues, and cannabis litigation.

The firm is well-known for its role in the cannabis banking industry and has worked with multiple financial institutions to establish a framework that allows them to accept cannabis-derived deposits. Burns & Levinson is currently working with regulated financial institutions and non-regulated private funds to set up first-of-their-kind cannabis lending programs. The firm is also among the top law firms in the country handling M&A and high-level corporate and financing deals in the private and public markets in the cannabis market.

For more information about the conference and to register, click here. For information on sponsorship opportunities, please contact Kristen Weller at kweller@burnslev.com.

 

Mass Cannabis Control Commission Notice Of Public Meeting May 22

MASSACHUSETTS: In accordance with Sections 18-25 of Chapter 30A of the Massachusetts General Laws, notice is hereby given of a meeting of the Cannabis Control Commission.

The meeting will take place at 10:30AM on May 22, 2018 in the Health Policy Commission Conference Room, 50 Milk Street, 8th Floor Boston, MA.

CNB_logo_rgb_web-300x139PUBLIC MEETING AGENDA

1) Call to Order

2) Chairman’s comments & updates

3) Approval of minutes from previous meetings

4) Executive Director Update
a) Staffing
b) Weekly Update:
i) Priority Certification applications status
ii) License applications status

5) Staff recommendations on priority certification applications

6) New business that the Chairman did not anticipate at time of posting

7) Next meeting date (if known)VIEW CALENDAR

Location

50 Milk Street, 8th Floor, Boston , MA 02110