Another public cannabis company is at the end of the line, with 4Front Ventures (CSE: FFNT) this morning indicating that all of its US-based subsidiaries have failed for voluntary receivership.
The filing is said to have been made in an effort to aid liquidation of the assets, with the filing made in the state of Massachusetts on May 22. The subsidiaries are expected to be placed into receivership in the Superior Court for Suffolk County.
Operations are expected to continue through the receivership process, with 4Front aiming to create some level of value of stakeholders through the sale of the assets of its subsidiaries.
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The filing follows 4Front seeing its shares halted for trading on the Canadian Securities Exchange, following its failure to file fourth quarter financial results. The equity meanwhile is expected to be delisted from the CSE as well as the OTCQB.
“The 4Front Board made this decision only as a last resort. 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,” commented Kris Krane, Chairman of 4Front.
4Front Ventures last traded at $0.005 on the CSE.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
