4Front Ventures Unloads Maryland Dispensaries, Shifts Focus to Illinois
Arizona-based cannabis firm 4Front Ventures, which has operations in five adult-use states, has completed the sale of three dispensaries in Maryland.
In a news release, 4Front Ventures said the stores were dealt to Philadelphia-based Ethos Cannabis, another multistate operator, for $5.5 million. The sale of the Maryland assets is part of a previously announced $18 million transaction that also includes licenses in Pennsylvania.
All three locations will be rebranded from “Mission” to “Ethos” stores, according to a separate release.
Ethos, which has raised $90 million from investors in the Philadelphia area, is run by former PharmaCann CEO Teddy Scott.
“Developing a mainstream oriented, vertically integrated platform with a core focus on retail and the expansion of the health and wellness market through relationships with academic medical institutions like Thomas Jefferson University are at the core of our strategic objectives at Ethos,” Ethos CEO Teddy Scott said.
The deal comes at a time when 4Front has refocused its attention to key adult-use markets like Illinois, where it recently commenced construction on a Mission dispensary in Calumet City.
“The Illinois market has been a triumph since implementing adult-use cannabis and we are excited to be expanding our operations in the state to better serve the customers and patients that depend on Mission,” said Gabe Mendoza, the vice president of operations.
The new location -- which spans 3,000 sq. ft. and is located roughly two miles from the Illinois-Indiana border -- will serve both medical and recreational customers.
4Front operates a second dispensary – Mission South Chicago – that was forced to close for two months after it was burglarized.
Additional information is available in news releases from both companies, published below.
4Front Ventures Provides Illinois Market Update and Announces Completion of Sale of Non-Core Maryland Assets
Construction Commences on Calumet City, Illinois Mission Dispensary
Kris Krane Appointed to the Adult Use Cannabis Health Advisory Committee by Illinois Governor Pritzker
PHOENIX -- 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (“4Front” or the “Company“) continues to focus its efforts in the Illinois market and is pleased to announce the start of construction on a new Mission Dispensary in Calumet City, Illinois. The Company is also announcing the appointment of President Kris Krane to the Illinois Adult Use Cannabis Health Advisory Committee by Illinois Governor Pritzker.
Mission Calumet City
Construction commenced at the beginning of September on the new Mission Calumet City dispensary that will serve both adult-use customers and medicinal patients. Located at 1330 Torrence Avenue, across from River Oaks Center, the new location will feature ample parking along with approximately 3,000 square feet of finished retail space, back-office space, a secure and oversized vault for substantial inventory storage, and an advanced security system.
“The Illinois market has been a triumph since implementing adult use cannabis and we are excited to be expanding our operations in the state to better serve the customers and patients that depend on Mission,” said Gabe Mendoza, Vice President of Operations for Mission. “Like with our Mission South Chicago location, Mission Calumet City is committed to becoming a contributing member of the Calumet City community and playing our part in the ongoing economic revitalization of the area by providing a safe and beautiful home for all things cannabis.”
The new store is slated to complete construction and begin serving customers before the end of the year.
Kris Krane Appointed to Illinois Adult Use Health Advisory Committee
In an effort to build a team of diverse experts and leaders in the field of cannabis, Illinois Governor J.B. Pritzker announced over two dozen appointments to the state’s Adult Use Cannabis Health Advisory Committee, including 4Front President Kris Krane. The Adult Use Cannabis Health Advisory Committee will be responsible for reporting on the public health impacts of legal cannabis and making recommendations for future policy and regulatory changes to positively impact the overall health implications for legal cannabis in the future.
“It’s truly an honor to have been appointed by Governor Pritzker to serve on the governor’s Adult Use Health Advisory Committee, along with many distinguished members of the public health, education, treatment and cannabis communities,” said Kris Krane. “Under Governor Pritzker’s leadership, the initial rollout of Illinois’ adult use-cannabis market has been very successful and a model for other states looking to implement a legal cannabis market. It’s great to see the voices of cannabis advocates represented within this committee, and I look forward to the work ahead to maintain Illinois’ leadership in the U.S. cannabis market.”
Maryland Asset Sale
4Front also announced that it has completed the sale of three Maryland dispensaries to Ethos Cannabis for approximately $5.5 million U.S.
About 4Front Ventures Corp.
4Front (CSE: FFNT) (OTCQX: FFNTF) is a national multi-state cannabis operator and retailer, with a market advantage in mass-produced, low-cost quality branded cannabis products. 4Front manufactures and distributes a portfolio of over 25 cannabis brands including Marmas, Crystal Clear, Funky Monkey, Pebbles, and the Pure Ratios wellness collection, distributed through retail outlets and their chain of strategically positioned Mission branded dispensaries.
Headquartered in Phoenix, Arizona, 4Front has operations in Illinois, Massachusetts, California, Michigan and Washington state. From plant genetics to the cannabis retail experience, 4Front’s team applies expertise across the entire cannabis value chain. For more information, visit 4Front’s website www.4frontventures.com.
Ethos Cannabis Announces Official Entrance Into Maryland
Maryland -- Ethos Cannabis (“Ethos” or the “Company”), a multi-state operator with operations and investment interests in Pennsylvania, Massachusetts, Florida, and Arizona, has officially acquired the right to manage and ultimately purchase Maryland medical cannabis dispensaries of 4Front Ventures Corp. (“4Front”) which are currently operated under the Mission brand. Ethos is acquiring the rights to manage and ultimately own three operational dispensary licenses in Rockville, Catonsville, and Hampden, Maryland which are all in the Baltimore and Washington, D.C. areas.
Ethos is focused on serving mainstream consumers and further developing the health and wellness market to help individuals feel and live better through their experiences with cannabis. The transaction for the rights to manage and ultimately own the Maryland dispensaries had been pending final regulatory approval from the Maryland Medical Cannabis Commission, which is now complete. All existing locations will be rebranded from “Mission” to “Ethos”.
The transaction regarding the Maryland dispensaries comes following the raising of over $50 million in debt and equity completed by Ethos. To date, the Company has raised approximately $90 million of capital predominantly from investors based in the Philadelphia area. Ethos has a strong focus on the strategic deployment of capital with prioritization of execution and the development of its platform in several core markets, including Maryland.
“The acquisition of the Mission dispensaries in Pennsylvania and the right to manage and ultimately acquire the dispensaries in Maryland represent a highly strategic step forward in the growth of Ethos in new markets. Developing a mainstream oriented, vertically integrated platform with a core focus on retail and the expansion of the health and wellness market through relationships with academic medical institutions like Thomas Jefferson University are at the core of our strategic objectives at Ethos. These transactions follow our pursuit of growth in other key target markets for our company,” said Teddy Scott, Chief Executive Officer of Ethos and the founder and former Chief Executive Officer of Pharmacann.
David Clapper, President of Pennsylvania and Chief Financial Officer, added, “This is a very exciting time for Ethos as an organization. After closing on our recent financing round, we have capitalized on an excellent opportunity to add core retail assets in attractive markets including Maryland that are highly prioritized on our strategic roadmap.
About Ethos Cannabis:
Ethos Cannabis is a multi-state operator with operations and investment interests in Pennsylvania, Massachusetts, Florida, and Arizona. Ethos is developing a leading vertically integrated, and retail-focused platform in the Mid-Atlantic, East Coast, and Midwest markets of the U.S. This platform serves mainstream consumers while expanding the health and wellness market through relationships with Thomas Jefferson University and other academic medical institutions and strategic partnerships. Ethos is dedicated to helping individuals feel and live better through their experiences with cannabis.
For more information about Ethos visit their website at https://www.ethoscannabis.com/