[PRESS RELEASE] – PHOENIX, May 23, 2025 – 4Front Ventures Corp., 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," Board Chairman Kris Krane said. "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 Dec. 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.
