Marijuana MSO 4Front Ventures takes out $10M loan for Illinois operations

Multistate marijuana company 4Front Ventures Corp. obtained a $10 million senior secured credit facility, which will be put toward its expanding retail operations in Illinois.

The loan from an affiliate of Altmore Capital will be issued in two tranches and matures on Sept. 30, 2026, as long as 4Front “extends the maturity of certain other subordinated debt,” the Phoenix-based company said in a news release.

The credit facility from Alt Debt II carries two possible interest rates, whichever is higher:

• The Wall Street Journal prime rate plus 7%.
• 15.5%,which will be paid monthly, with principal payments postponed for six months.

The capital will be used to build out 4Front’s “retail operations in Illinois in connection with the imminent launch of its new state-of-the-art cultivation and processing facility in Matteson.”

In a statement, 4Front CEO Leo Gontmakher said the facility will be online before the end of this year and that “ramping up our retail operations will support a more than fourfold expansion of our production capacity in (Illinois) over the next twelve months.”

Gontmakher said 4Front currently has two Mission-branded outlets in Illinois and aims “to have our full slate of 10 retail stores before the end of 2024.”

The company operates in California, Illinois, Massachusetts, Michigan and Washington state.

Shares of 4Front trade as FFNT on the Canadian Securities Exchange and FFNTF on U.S. over-the-counter markets.