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Cannabis facility operator 4Front Ventures Corp. (CSE:FFNT) (OTCQX: FFNTF) reported a major year-over-year sales spike in its latest earnings report.
The Phoenix-based company says "Total Systemwide Pro Forma Sales" for 2019 jumped 786% to $63.5 million.
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4Front posted a 525% year-over-year increase during the fourth quarter, reaching $17.5 million. IFRS Sales increased by 361% during the same period, to $12.9 million.
As per preliminary results for the first quarter of 2020, sales amounted to $23.8 million — an increase of 36%.
For the first three months of the 2020 fiscal year, preliminary IFRS Sales reached $17.6 million, rising by 37% compared to the previous quarter.
The company’s CEO Leo Gontmakher said the last fiscal year “was a transformative year for our company.”
“With the acquisition of Cannex in July and its subsequent integration into 4Front during the second half of the year, 4Front became a leader in the mass-production of low-cost, high quality, branded cannabis products.”
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The company highlighted that consumer demand remained strong despite the coronavirus outbreak.
Here’s the breakdown of 4Front’s latest earnings report:
(2019’s financial results include results from 4Front Holdings LLC and Cannex Capital Holdings, Inc.)
- Negative adjusted EBITDA (non-IFRS) of $5.4 million for the fourth quarter, a loss of $20.9 million for the year ended 2019, and a loss of $3.8 million for the first quarter of 2020
- A gross profit of roughly $14 million in 2019, compared to $1.3 million in 2018
- Gross profit for the first quarter of 2020 amounted $9.7 million (less the impact of adjustments for biological assets)
- $8.1 million of cash and $87.3 million in long-term and convertible debt at the end of the fourth quarter
- $146.3 million in a non-cash impairment charge
Operational Update
The company said it’s going toward being cash flow positive in the second half of 2020.
In March, it announced it would cut its workforce, including layoffs in the management and corporate sectors.
4Front also reported it has been enchasing its footprint in both Massachusetts and Illinois, anticipating its production capacities will be expanded by the fourth quarter of this fiscal year.
In addition, the company still awaits the Massachusetts Cannabis Control Commission’s approval for its Massachusetts locations.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.