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4Front Ventures Corp CNXXF


Primary Symbol: C.FFNT Alternate Symbol(s):  FFNTF

4Front Ventures Corp. is a vertically integrated, multi-state cannabis operator and retailer with operations in Illinois and Massachusetts and facilities in Washington. The Company manufactures and distributes a portfolio of over 25 cannabis brands including Mission, the Hunt, Marmas, Crystal Clear, Legends, and Island. The Company distributes its products through third party retail outlets, as well as the Company's chain of branded dispensaries. It operates through two segments: THC Cannabis and CBD Wellness. THC Cannabis segment consists of five dispensaries and four production and cultivation facilities across Illinois and Massachusetts. Also, as part of its THC Cannabis segment, the Company leases real estate, sells equipment and supplies, and licenses intellectual property to cannabis producers in the state of Washington. Its dispensaries are branded under the MISSION retail brand. The Company’s CBD Wellness segment sells non-THC hemp derived products across the United States.


CSE:FFNT - Post by User

Comment by Chris2982on Oct 12, 2018 6:44pm
99 Views
Post# 28792304

RE:RE:RE:RE:RE:RE:Last day

RE:RE:RE:RE:RE:RE:Last dayYou are correct that NWCS is not owned by cannex so it’s revenue does not appear on cannexs revenue stream. The owner of NWCS sold to cannex and owns 12 million restricted voting shares which cannot be sold or converted to ordinary shares without board approval so he is locked into cannex and very dependant on cannexs future performance. All of NWCS profits make their way to cannex in the form of rents, packaging, and consulting services so it’s really up to you whether or not you consider cannexs revenue to be 10 millionish or 40 million but at the end of the day it doesn’t really affect their bottom line. Their EBITDA would be the same even if they could own NWCS outright only their revenue would appear different and most informed investors likely see it as a semantic difference and see cannex for the real potential it has. 

I agree it is odd that it has taken this long to get the deal done but I also wouldn’t worry too much about it. All those disclaimers about the deal potentially not finishing are always present. Look at the fine print of any acquisition release and it will say the same thing somewhere. It’s only there to cover all their bases. Anthony hasn’t given any indication that the deal is at risk of falling through, in fact he said the deal was going just fine except that it is quite complex so there’s have been delays. 

And even if the deal did fall through their current valuation is incredibly low. I can’t think of another public US cannabis company putting out the profit numbers these guys are and yet their valuation is a fraction of other companies so if the deal fails I think there will be a couple cent drop at most. They will just move on to the next acquisition target. Setbacks happen all the time you need to be prepared for them and have faith that the long term outlook is positive
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