"The confidence LI Lending has shown in our business through the culmination of this transaction has been incredibly encouraging," said
Under the terms of the Amendment, the Company also granted to the Lender a restricted stock unit ("RSU") to maintain the Lender's current ownership percentage (calculated on a partially diluted basis) in the Company exercisable into SVS in the event any financing is completed by the Company at a price less than the Conversion Price during the six months from the date of issuance (the "Financing"). Additionally, under the terms of the Amendment, the Company provided warrant coverage of 15%, with an exercise price of $CAD 0.144 or $USD 0.108. This price represents a premium of 15% from the Conversion Price. Each Warrant is exercisable into one SVS for a term of three years.
In addition to the Company's success in strengthening the balance sheet through debt conversion, the Board of Directors, aiming to align more closely with the Company's objective of long term shareholder value creation, has chosen to cap their annual remuneration for the duration of the LI loan, and at least for the period from January to
4Front is a national, vertically integrated multi-state cannabis operator that owns or manages operations and facilities in
Certain statements in this press release may be considered forward-looking, such as statements regarding the terms and conditions of the Amendment and the RSU, the possibility of one or more Financings, the potential acceleration of our path to positive cash flow generation and facilitation of sustainable and profitable growth, the possibility of cannabis rescheduling, federal banking reform and improved access to capital, the commitment of our lenders to safeguarding the financial health of the company and focusing on long term growth and our expectations regarding the growth of the company and ability to realize our strategic growth plans and accelerate value creation. Forward-looking statements are typically identified by words and phrases such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "seek," "should," "will," "would," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" or the negative of such words and other comparable terminology. However, the absence of these words does not mean that a statement is not forward-looking. Any forward-looking statements expressing an expectation or belief as to future events is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future events and involve risks, uncertainties and other factors beyond 4Front's control including but not limited to receipt of third-party and regulatory approvals, if any, on terms and conditions stated in the Amendment, the Financing, the coming into force of any proposed government federal legislation including regarding cannabis rescheduling and banking reform and the risk factors and other cautionary statements as set out in the materials we file with applicable securities authorities including our Annual Report on Form 10-K for the year ended
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