Ontario Securities Commission Issues Failure-to-File Cease Trade Order Against 4Front

Rhea-AI Summary

The Ontario Securities Commission (OSC) has issued a failure-to-file cease trade order against 4Front Ventures Corp. (OTCQB: FFNTF), a vertically integrated cannabis operator, on May 7, 2025. The order comes after the company failed to file required periodic disclosures including audited annual financial statements, management's discussion and analysis, and required certifications for the year ended December 31, 2024. The cease trade order prohibits trading in 4Front's securities across Canadian jurisdictions, with limited exceptions for non-insider beneficial security holders who acquired shares before the order date to sell through foreign organized regulated markets using registered Canadian investment dealers.

Positive

• None.

Negative

• Company failed to file required annual financial statements and disclosures for 2024
• Cease trade order issued by Ontario Securities Commission restricting trading of company securities
• Trading restrictions apply across multiple Canadian jurisdictions through automatic reciprocal orders
• Potential compliance and governance issues indicated by failure to meet filing requirements

PHOENIX, May 8, 2025 /PRNewswire/ - 4Front Ventures Corp. ("4Front" or the "Company") (CSE: FFNT) (OTCQB: FFNTF), a vertically integrated cannabis operator, announces that on May 7, 2025, the Ontario Securities Commission ("OSC") issued a failure-to-file cease trade order (the "Order") against the Company.

The OSC determined that the Company had not filed the following periodic disclosure required by the securities legislation of Ontario ("Legislation"):

• audited annual financial statements for the year ended December 31, 2024;
• management's discussion and analysis relating to the audited annual financial statements for the year ended December 31, 2024; and
• certification of the foregoing filings as required by National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings.

As a result of the Order, if the Company is a reporting issuer in a jurisdiction in which Multilateral Instrument 11-103 Failure-to-File Cease Trade Orders in Multiple Jurisdictions applies, a person or company must not trade in or purchase a security of the Company in that jurisdiction, except in accordance with the conditions that are contained in the Order, if any, for so long as the Order remains in effect.

Further, the Order takes automatic effect in each jurisdiction of Canada that has a statutory reciprocal order provision, subject to the terms of the local securities legislation.

The Order states that OSC was satisfied that the decision concerning the cease trade meets the test set out in the Legislation to make the decision. The Order directs that under the Legislation trading, whether direct or indirect, cease in respect of each security of the Company. The Order further directs that, despite the Order, a beneficial security holder of the Company who is not, and was not at the date of the Order, an insider or control person of the Company, may sell securities of the Company acquired before the date of the Order if both of the following apply:

a)  the sale is made through a "foreign organized regulated market", as defined in section 1.1 of the Universal Market Integrity Rules of the Canadian Investment Regulatory Organization; and

b)  the sale is made through an investment dealer registered in a jurisdiction of Canada in accordance with applicable securities legislation.

As to interpretation, the Order states that terms defined in the Legislation, National Instrument 14-101 Definitions or National Policy 11-207 Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions have the same meaning if used in the Order, unless otherwise defined.

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

What caused the cease trade order for FFNTF stock?

The cease trade order was issued because 4Front failed to file its 2024 audited annual financial statements, management's discussion and analysis, and required certifications as required by securities legislation.

Can investors still trade FFNTF shares after the cease trade order?

Non-insider beneficial security holders who acquired shares before the order can sell through foreign organized regulated markets using registered Canadian investment dealers. Otherwise, trading is prohibited across Canadian jurisdictions.

What documents did 4Front Ventures fail to file with the OSC?

4Front failed to file its audited annual financial statements, management's discussion and analysis, and related certifications for the year ended December 31, 2024.

How long will the FFNTF cease trade order remain in effect?

The cease trade order will remain in effect until 4Front files the required documents and the order is revoked by the Ontario Securities Commission.