PHOENIX, Oct. 25, 2018 -- PRESS RELEASE -- 4Front Holdings, LLC, a U.S. cannabis retail and brand development company, has announced that it has completed a private placement of equity securities for gross proceeds of approximately $31 million. Due to strong investor demand, the offering size was increased from its initial amount of $15 million.
Eight Capital, based in Toronto, acted as 4Front's lead agent and bookrunner in connection with the offering, with a syndicate of agents that included Cormark Securities Inc., Bayfront Capital Partners, Ltd. and INFOR Financial Inc.
4Front will use the proceeds of the offering to fund its ongoing investment in top-tier talent, the buildout in multiple states of its Mission-branded dispensaries and cultivation facilities, as well as for M&A opportunities.
"The success of the offering demonstrates that our message of pursuing prudent yet aggressive growth is resonating with investors," said Josh Rosen, 4Front's CEO and co-founder. "I'm particularly excited by the caliber of our new investors, as well as the broad participation in the offering by our existing investors. 4Front continues to build a solid investor base that includes many strategic partners who appreciate our platform and approach to capitalizing on the opportunities in the sector."
With the offering completed, 4Front continues the process of becoming a publicly traded company, which it expects to complete in the coming months.