Mr. Josh Rosen reports

4FRONT ANNOUNCES PROGRESS ON NON-CORE ASSET DIVESTITURES AND ADDITIONAL FUNDING FROM GOTHAM GREEN PARTNERS

4Front Ventures Corp. has completed the first steps of the capital plan highlighted in its press release dated Nov. 29, 2019, announcing 4Front's financial performance in Q3 2019.

The capital plan underpins the company's focus on revenue growth and profitability in 2020 and includes the divesture of certain non-core assets. The closing of the sale of 4Front's economic interests associated with three Arkansas dispensaries is the first of these divestitures. Additionally, the company announces the closing of additional financing from entities associated with Gotham Green Partners LLC (GGP). GGP, an existing investor and the holder of secured convertible promissory notes in 4Front, is actively engaged in supporting 4Front's growth plans.

"4Front continues to sharpen its focus on operations and execution in key markets, enabling us to drive towards our revenue growth and profitability goals," said Josh Rosen, 4Front's chief executive officer. "In December, we provided initial guidance for both 2020 and 2021, which included the modest capital needs anticipated to get our company to cash flow positive in the back half of this year. Today's announcement marks the first disclosure around the broader capital plan intended to enable the company to achieve its guidance as previously outlined. As a shareholder-aligned management team with significant skin in the game, we see opportunities to further optimize our business around core assets while minimizing dilution to shareholders. The arc of our active discussions with both strategic and financial partners buttresses our confidence in being properly capitalized to fund our expansion."

"I'm eager to capitalize on our strong business momentum and demonstrate our capabilities as an integrated company with Cannex over the coming quarters," said Brad Kotansky, 4Front's chief financial officer. "I'm particularly pleased with the receptivity among both existing and new prospective investors to our prioritization of efficient (low-cost), quality production at scale."

4Front has also received additional financing from GGP to support the company's continuing growth.

"The Gotham Green team has been a strong partner to Cannex and now 4Front. The willingness to support our process is consistent with that partnership to enable our growth while we optimize our footprint and capital structure," Mr. Rosen said.

GGP managing member Jason Adler noted: "We continue to be believers in the combined Cannex and 4Front team and its world-class production capabilities. Our additional investment is a further vote of confidence in the management team and will ensure the continued expansion plans remain on schedule."

4Front has issued to GGP additional senior secured convertible notes in the principal amount of $3-million (U.S.). The notes bear 15-per-cent interest, paid in kind, and are convertible, along with interest, at a price equivalent to 64.7 U.S. cents per subordinate voting share (SVS), a 29-per-cent premium to the SVS closing price as of Jan. 29, 2020. Additionally, 4Front has issued warrants equivalent to 2,230,080 SVS at 67.3 U.S. cents per share, a 35-per-cent premium to the closing price as of Jan. 29, 2020. The notes mature no later than six months from issuance and the warrants have a term of three years.

The terms of 4Front's sale of its economic interests related to the Arkansas dispensaries are confidential. A copy of the notes may be found under the company's SEDAR profile and more information may be found under the company's profile on the Canadian Securities Exchange's website.

About 4Front Ventures Corp.

4Front is a cannabis company designed for long-term success and built upon battle-tested operating capabilities at scale, experienced and committed leadership, a strategic asset base, and a commitment to being a magnet for talent. From plant genetics to the cannabis retail experience, 4Front's team applies expertise across the value chain. 4Front has invested heavily to assemble a comprehensive collection of management skills and hands-on operating expertise to capitalize on the unique growth opportunity being afforded by the increased legalization of cannabis.

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