FY 2023 Revenue of $97.4 Million, Excluding Discontinued Operations FY 2023 Adjusted EBITDA1 of $10.1 Million  Appointed Peter Kampian as Chief Financial Officer Wholesale Revenue Growth in Massachusetts and Illinois: 42% and 75% Year Over Year Furthers Expansion Strategy in Illinois PHOENIX, April 15, 2024 /CNW/ - 4Front Ventures Corp. (CSE:FFNT) (OTCQX:FFNTF) ("4Front" or the "Company"), a vertically integrated, multi-state cannabis operator and retailer, today announced its financial results for the fourth quarter and full year ended December 31, 2023. All financial information is presented in U.S. dollars unless otherwise indicated. Q4 2023 Highlights GAAP revenue from continuing operations of $ 21.0 million Adjusted EBITDA (non-GAAP)1 of $ 2.5 million FY 2023 Highlights GAAP revenue from continuing operations of $ 97.4 million Adjusted EBITDA (non-GAAP)1 of $ 10.1 million Increased wholesale revenue by 75% in Illinois and 42% in Massachusetts 1Adjusted EBITDA is a non-GAAP measure. See "Note Regarding Non-GAAP Measures, Reconciliation, and Discussion" and the accompanying table for a reconciliation of Adjusted EBITDA (non-GAAP) to net loss, the nearest comparable GAAP measure. Management Commentary"As the new CEO of 4Front Ventures, I'm thrilled to take the helm at such a pivotal juncture for our company. Having navigated the many challenges of 2023, I couldn't be more excited to turn the page to 2024," said Andrew Thut, CEO of 4Front Ventures. "Our growth strategy, particularly in Illinois with the imminent opening of our Matteson facility and two new stores, is expected to double our production capacity and significantly boost our revenue and profitability in the state. Additionally, we anticipate further growth in Massachusetts that is expected to accelerate starting in the second quarter, as we expand our wholesale channels and continue to benefit from investments in our cultivation facilities, adjustments made to our product lines, and an improved menu offering." Mr. Thut continued, "Over the past year, we achieved substantial growth in our wholesale revenue, with a 75% increase in Illinois and 42% in Massachusetts. This growth is a testament to our capacity to deliver high-quality products at the right price. The Washington facilities enjoyed a significant revival, with flower revenue nearly doubling from the first to the last quarter. It's noteworthy that these positive achievements helped to balance out a year fraught with headwinds, particularly in California, and in other competitive local environments as well. While these challenges were costly, they have ultimately paved the way for a more focused, streamlined, and profitable business. We have learned a great deal from our experiences, and our team is stronger and better prepared for the future as a result. With the advancement of our Matteson facility and our ongoing expansion into Illinois retail, I believe that 2024 and 2025 will truly showcase our ability to compete and win in battleground markets." "As we look ahead, our strategy encompasses more than just expansion; it focuses on innovation, quality, and market engagement. We're leveraging data along with our extensive industry and consumer insights to develop products that meet market demands and appeal to a diverse audience across the entire price-quality spectrum. Our enhanced vape technology includes unique features like the Blast button on Crystal Clear disposables and compact, innovative devices for the Marmas Bar. Additionally, we're broadening our product range with more minor cannabinoids, a greater variety in pre-rolls, and upcoming introductions like liquid diamonds in Marmas Bar vapes, Terp Stix, and Infused 1988 blunts. "Our efforts to boost the quality and diversity of our flower products have yielded significant results. By diversifying our crop rooms, adopting new dry and cure methods, and switching to rockwool media, we've substantially improved both our harvests and quality control. Our products now feature an average THC level of 25%, with some strains exceeding 30%, and an overall cannabinoid content approaching 31%. These achievements are clear indicators of our operational progress and our commitment to R&D, particularly in the rapidly evolving vape segment, ensuring we maintain a competitive edge." Mr. Thut concluded, "As the new CEO, I am honored to lead 4Front into this transformative period. Having been with the company for a decade, my commitment to our mission is unwavering. Our team's resilience and adaptability have been outstanding. With a streamlined cost structure, additional innovative products soon to launch, and a clearly defined strategic plan, 4Front is poised for enduring and profitable growth." Fourth Quarter 2023 Company Highlights 4Front Bolsters Leadership with Key Senior Management Appointment. Peter Kampian has been welcomed aboard 4Front Ventures as the new Chief Financial Officer, starting December 1, 2023. Kampian brings extensive financial expertise to enhance the company's finance and accounting operations. Brand Expansion: The Hunt, a fresh cannabis flower brand, augments 4Front Ventures' portfolio, offering diverse, high-quality, affordable selections in Massachusetts. The Hunt features unique, rare, limited, and small-batch phenotypes, now accessible at Mission Dispensaries and select retailers throughout the state. Initiated retail expansion strategy in Illinois. Company set to double its retail presence in Illinois, with the Grand Opening of the new Mission Dispensary in Norridge scheduled in three weeks and New Elston/Logan location opening slated for Q4. Recorded significant wholesale revenue growth in Illinois and Massachusetts, with a 75% and 42% increase year-over-year, respectively. This growth reinforces 4Front's status as a leading supplier to prominent third-party retailers in these states. Post-Quarter End DevelopmentsSubsequent to the end of the fourth quarter, the Company announced the following developments: Strengthened Balance Sheet with $23 Million Debt Conversion into Equity. The Company converted $23 million of senior secured debt into common stock, reducing annual interest expense by approximately $3 million. Electrical Power Activated at Flagship Matteson, Illinois Facility; Commissioning Progresses. Significant milestones have been achieved, including power activation, commissioning of lighting and HVAC systems, and setup of cultivation and extraction infrastructure, preparing for lab operations and plant introduction this spring. New Chief Executive Officer Appointed. Andrew Thut has been named the new CEO by the company's board of directors, effective January 8, 2024, succeeding Leo Gontmakher. Thut, who has been serving as the Company's Chief Investment Officer since October 2014, brings extensive experience in financial management and a robust track record of business leadership. His previous role as Managing Director at BlackRock Advisors LLC, where he oversaw the BlackRock Small Cap Growth Fund, saw the $2 billion fund achieve a ranking within the top five percent of all domestic small-cap growth funds. Launch of New Marquee Flower Brand, Mission Cannabis, in Illinois and Massachusetts. The company has rolled out Mission Cannabis, a brand that leverages advanced cultivation techniques and insights to offer products with varied terpene profiles for a superior taste and aroma. This launch follows over five years of dedicated in-house strain development. Introduced Crystal Clear Blast to Massachusetts and Illinois Markets. This innovative vape product marks a significant leap in 4Front's commitment to providing top-quality cannabis consumption devices, offering precision control through a unique 'blast' button and consistent delivery via a high-flow atomizer. Q4 and FY 2023 Financial OverviewRevenue was $ 21.0 million for Q4 2023, down 21% from the fourth quarter of 2022 ("Q4 2022"), and $97.4 million for FY 2023, a decrease of 10% from the prior year. Massachusetts annual revenue of $44.1 million was 7.4% lower than the prior year which was attributed to lower volumes as a result of underperforming flower yields and price declines experienced during the current year.  Revenue in Illinois declined by 7.1% to $37.7 million primarily due to price compression. Adjusted EBITDA1 was $10.1 million for FY 2023, representing an Adjusted EBITDA margin of 10%, 1Adjusted EBITDA is a non-GAAP measure. See "Note Regarding Non-GAAP Measures, Reconciliation, and Discussion" and the accompanying table for a reconciliation of Adjusted EBITDA (non-GAAP) to net loss, the nearest comparable GAAP measure. As of December 31, 2023, the Company had $3.4 million in cash and $47.5 million in related-party long-term debt, which has since been reduced by $23 million after the quarter end and is not due until May 1, 2026. As of April 10, 2024, the Company has 912,923,993 Class A subordinate voting shares and 1,276,208 Class C multiple voting shares outstanding. Conference CallThe Company will host a conference call and webcast today, Monday, April 15, 2024, at 5:00 p.m. ET to review its financial and operating results and provide an update on current business trends. Date: Monday, April 15, 2024 Time: 5:00 p.m. Eastern Time Webcast: Register Dial-in: 1-888-664-6392 (North America Toll-Free) The conference call will be available for replay by phone until April 29, 2024, at 1-888-390-0541, replay code: 812161 # Additionally, the webcast will be archived for approximately 90 days following the call and can be accessed via 4Front's Investor Relations website. For assistance, please contact About 4Front Ventures Corp. 4Front is a national, vertically integrated multi-state cannabis operator with operations in Illinois and Massachusetts and facilities in Washington. Since its founding in 2011, 4Front has built a strong reputation for its high standards and low-cost cultivation and production methodologies earned through a track record of success in facility design, cultivation, genetics, growing processes, manufacturing, purchasing, distribution, and retail. To date, 4Front has successfully brought to market more than 20 different cannabis brands and over 1,800 products, which are strategically distributed through its fully owned and operated Mission dispensaries and retail outlets in its core markets. As the Company continues to drive value for its shareholders, its team is applying its decade of expertise in the sector across the cannabis industry value chain and ecosystem. For more information, visit https://4frontventures.com/. 4FRONT VENTURES CORP.Audited Consolidated Balance Sheets(Amounts expressed in thousands of U.S. dollars except for share and per share data) As of December 31, 2023 2022 ASSETS Current assets: Cash $3,398 $14,271