4Front Ventures Corp.: debt financing — 4Front converts $23M senior secured debt into equity; loan balance reduced to $28.7M

4Front Ventures Corp.

Issued 244.68M Class A shares at CAD 0.125/share to retire $23M of senior secured debt.
Remaining loan balance of $28.7M unchanged; Lender received 15% warrant coverage at CAD 0.144.
Granted an RSU to maintain Lender's 18.43% ownership in case of dilutive issuance below CAD 0.125 within 6 months.
Board caps annual remuneration for loan duration and will accept RSUs for Jan-Apr 2024.
CEO Andrew Thut cites strengthened balance sheet and alignment with lender for long-term equity value.

item 1.01 item 2.03 item 3.02 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

4Front Ventures Corp. amended credit facility of US$28,700,000 with LI Lending, LLC maturing May 1, 2026.

Instrument: credit facility
Principal: US$28,700,000
Counterparty: LI Lending, LLC
Maturity: May 1, 2026
Event: amendment

Exact text from the filing

A Subordinate Voting Shares of the Company (“Class A Shares”) at a price of CAD$0.125 per Class A Share to the Lender. The remaining balance of the loan from the lender is US$28,700,000 (the “Loan”).The Lender also received a warrant (the “Warrant”) to purchase up to 36,702,127 Class A Shares at an exercise price of CAD$0.14375 per Class A Share. The Warrant is

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

4Front Ventures Corp. amended Second Amendment to Amended and Restated Loan and Security Agreement with LI Lending, LLC valued at US$23,000,000 (effective 2024-01-29).

Action: amendment
Agreement: credit facility
Counterparty: LI Lending, LLC
Value: US$23,000,000
Effective: 2024-01-29

Exact text from the filing

On January 29, 2024, 4Front Ventures Corp. (the “Company”) entered into the Second Amendment to Amended and Restated Loan and Security Agreement (the “Amendment”), dated January 29, 2024, by and among the Company, LI Lending, LLC, a Delaware limited liability company (the “Lender”), the borrowers party thereto and the grantors party thereto.

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299 debt financings filed in the last 30 days. Browse all debt financings →

Source: SEC EDGAR

accession 0001279569-24-000091

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