All 4Front Subsidiaries File for Court-Appointed Receiver

Rhea-AI Summary

4Front Ventures Corp. (OTCQB: FFNTF) announced that all its U.S. subsidiaries have filed for voluntary receivership in Massachusetts on May 22, 2025. The cannabis operator plans to continue operations during the receivership process while seeking to sell its assets. Chairman Kris Krane stated this was a "last resort" decision due to significant balance sheet liabilities and lack of operational financing. The company previously failed to file its 2024 audited financial statements, resulting in a cease trade order in Canada. Due to these issues, 4Front is expected to be delisted from both the Canadian Securities Exchange and OTCQB. The receivership proceedings will be handled in the Superior Court for Suffolk County, with Foley Hoag LLP serving as legal counsel.

Positive

• Company continues operations during receivership process
• Potential value generation through asset sales
• Strong cultivation and manufacturing operations noted by management

Negative

• All U.S. subsidiaries filing for voluntary receivership
• Significant balance sheet liabilities forcing liquidation
• Lack of available financing for operations
• Failed to file 2024 audited financial statements
• Facing delisting from both CSE and OTCQB exchanges
• Cease trade order issued in Canada

PHOENIX, May 23, 2025 /PRNewswire/ - 4Front Ventures Corp. ("4Front" or the "Company") (CSE: FFNT; OTCQB: FFNTF), a vertically integrated cannabis operator, announces that all its United States subsidiaries filed for a voluntary receivership in aid of liquidation under the laws of the Commonwealth of Massachusetts on May 22, 2025.  The Company anticipates that its subsidiaries will be placed into receivership in the Superior Court for Suffolk County, Business Litigation Division. The Company intends to continue operating during the receivership process and hopes the process will generate value for stakeholders through the sale of assets of its subsidiaries in one or more transactions.

"The 4Front Board made this decision only as a last resort," said Chairman of the Board Kris Krane. "While we believe 4Front's cultivation and manufacturing operations are standouts and its retail stores have found exciting new ways to engage consumers, the liabilities on the Company's balance sheet coupled with a lack of available financing for operations have forced us to file for a voluntary receivership in order to pursue an orderly sale of the Company's businesses."

"The 4Front Board gave careful consideration to the duties owed to all stakeholders, and in the absence of other available alternatives, determined that it was in the best interests of the Company and its stakeholders to voluntarily request a receivership and court protection."

Further information regarding the proceedings may be obtained from the receiver once appointed. Foley Hoag LLP is serving as legal counsel to the Company.

The Company previously announced that, as a result of its failure to file its audited annual financial statements for the year ended December 31, 2024, and related management discussion and certifications, the Ontario Securities Commission had issued a failure-to-file cease trade order generally prohibiting its common stock from being traded in Canada. Due to that filing deficiency and the receivership petition, it is anticipated that the Company ultimately will be delisted from both the Canadian Securities Exchange and the OTCQB.

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. For more information, visit https://4frontventures.com/.

The Canadian Securities Exchange (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.

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SOURCE 4Front Ventures Corp.

FAQ

Why did FFNTF file for receivership in May 2025?

4Front Ventures filed for receivership due to significant balance sheet liabilities and lack of available financing for operations, making it impossible to continue normal business operations.

What happens to FFNTF stock after the receivership filing?

The company is expected to be delisted from both the Canadian Securities Exchange and OTCQB due to the receivership filing and failure to file 2024 audited financial statements.

Will 4Front Ventures continue operations during receivership?

Yes, the company intends to continue operating during the receivership process while seeking to sell its assets through one or more transactions.

What are the next steps for 4Front Ventures (FFNTF) after filing for receivership?

The company will proceed with receivership proceedings in the Superior Court for Suffolk County, seeking to generate value through asset sales while continuing operations during the process.

What caused 4Front Ventures' financial troubles in 2025?

The company faced significant balance sheet liabilities, lack of operational financing, and failed to file its 2024 audited financial statements, leading to a cease trade order in Canada.