4Front Ventures Corp. Transforms Balance Sheet Through Conditional Senior Secured Debt Conversion into Equity and Announces Leadership Change

PHOENIX, Jan. 8, 2024 /PRNewswire/ – 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (“4Front” or the “Company”), a vertically integrated, multi-state cannabis operator and retailer, announced that the Company has entered into a conditional amendment to the loan and security agreement (collectively, the “Amendment“) with its senior secured lender, LI Lending, LLC (the “Lender“) under which the Lender will convert approximately 44% ($USD 23,000,000) of the principal amount of its debt into class A subordinate voting shares of the Company (the “SVS“). The conversion price of $CAD 0.125 ($USD 0.094) per SVS (the “Conversion Price“), was negotiated with the Lenders and reserved with the Canadian Securities Exchange (the “CSE”) at the closing price on December 22, 2023. Under the terms of the Amendment, the Company will also provide 15% warrant coverage with an exercise price of $CAD 0.144 (USD$ 0.108), being a premium of 15% from the issue price of the SVS, each exercisable into one SVS for a term of three years. The terms for the remaining loan balance of $USD 28,700,000 will be unamended, and the interest rate will remain at 12%. The Amendment is subject to requisite third-party concessions and approvals, including regulatory approval from the Canadian Securities Exchange.

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