4Front Holdings has secured a $50 million loan from LI Lending to support the expansion and buildout of 4Front's cultivation and production facilities ahead of its anticipated business combination with Cannex Capital Holdings.
According to the company, the loan's terms include:
- A five-year term
- An interest rate of 10.25%
- A 20% repayment premium at maturity
- Importantly, the Loan is non-dilutive, not convertible, does not include warrants or similar equity instruments nor a prepayment penalty.
"We have had detailed discussions with several prospective lenders over the last two years, but LI Lending offered terms materially better than others," said Josh Rosen, CEO and co-founder of 4Front. "In addition, our lender has a ground-up understanding of cannabis production and processing facilities."
4Front's anticipated business combination with Cannex has been approved by Cannex shareholders and is awaiting final approval from U.S. antitrust authorities. The resulting combined entity is planned to be named 4Front Ventures.
For more information:
4Front Holdings
4frontventures.com