4Front - A Mass Market Platform for Consumer Cannabis Investor Presentation CSE: FFNT / OTCQX: FFNTF
Disclaimer Information in this presentation is about 4Front (“ 4Front ”), its future operations, financial performance, operational forward-looking statements. principals, its business and the industry in which it is a milestones, retail store openings, and harvest yields. participant. The information is presented for informational Readers are cautioned not to place undue reliance on such This presentation also contains certain personal opinions of the purposes only and does not constitute an offering of securities forward-looking statements, which speak only as of the date principals of 4Front regarding the industry in which 4Front is a or otherwise constitute an invitation or inducement to any hereof. All subsequent oral or written forward-looking participant, including, without limitation, personal opinions person to underwrite, subscribe for, or otherwise acquire or statements attributable to 4Front or any of its directors, officers regarding the future development and other characteristics of dispose of, securities of, in or by 4Front or any of its principals or employees, or any persons acting on their behalf, are the industry. These opinions are solely the personal opinions of or affiliates. Any future offering or sale of securities by or of expressly qualified in their entirety by the cautionary statement the principals of 4Front and are based on the personal 4Front will be presented in, and sold pursuant to, a legally- above. Neither 4Front nor any of 4Front’s representatives make knowledge, experience and expectations of those principals. compliant securities offering, the terms of which will be set forth any representation or warranty, express or implied, as to the Neither 4Front nor any of its principals has confirmed the in the appropriate legal documentation. accuracy, sufficiency or completeness of the information in this reasonableness or reliability of these opinions or the premises This presentation contains information about 4Front and the presentation. upon which these personal opinions have been formed. industry in which 4Front is a participant, including financial Although these personal opinions may be useful for purposes of Actual results could differ materially from those currently information and information that may constitute forward- gaining a general understanding of the industry in which 4Front anticipated due to a number of factors and risks. Material looking statements that inherently are subject to substantial is a participant, these opinions should not be viewed as factors such as legal or regulatory changes, failure to achieve risks and uncertainties because they relate to inherently replacements for the viewer’s own assessment of the industry operational objectives, crop disease, etc., could cause actual unpredictable future events. Such forward-looking statements based on the viewer’s own diligence, knowledge and results to differ materially from a conclusion, forecast or relate to: operational performance, market size, regulatory and understanding. projection in the forward-looking statements. Particularly, legal environments. Words or phrases such as “anticipate,” actual revenue, Systemwide Pro Forma Revenue, and/or This presentation is for informational purposes and does not “objective,” “may ,” “will,” “might,” “should,” “could,” “can,” Adjusted EBITDA, may materially differ from the Company's constitute an offer or a solicitation of an offer to purchase the “intend,” “expect,” “believe,” “estimate,” or similar targets or projections. securities referred to herein. The shares of 4Front have not expressions or variants thereof suggest future outcomes, the been and will not be registered under the United States results of which are uncertain and are “forward-looking Other than as required pursuant to applicable law, 4Front does Securities Act of 1933, as amended. information” or “forward-looking statements” within the not intend to, and does not have any obligation to, update the meaning of applicable securities laws. These statements information contained in the presentation, including, without Include, but are not limited to, statements made regarding limitation, any financial information or information constituting 4Front | A Mass Market Platform for ConsumerCannabis 2 Opportunity
Disclaimer contd. In this presentation, 4Front refers to certain non-IFRS financial Certain information within this presentation regarding the (“ 7P ”). Washington state law currently forbids the out-of-state measures such as Systemwide Pro Forma Revenue and financial and operational performance of companies which are ownership of cannabis licenses. Brightleaf leases the facilities to Adjusted EBITDA. These measures do not have any not subsidiaries and/or do not have a management contract NWCS and 7P, and additionally licenses its brand names and standardized meaning prescribed by IFRS and may not be with 4Front has been provided voluntarily by such companies. intellectual property, sells non-cannabis inputs to, and provides comparable to similar measures presented by other issuers. 4Front is relying upon the accuracy of such information and growing consulting services. For more information, please refer 4Front defines Systemwide Pro Forma Revenue as total revenue makes no assurances regarding the accuracy of any such to Cannex Capital Holdings, Inc., Listing Statement, available at plus revenue from entities with which the Company has a information. www.thecse.com, and Cannex’s Audited Annual Financial management contract but does not consolidate the financial Statements for the Year Ended December 31, 2018, available at Certain of the information contained in this presentation results of per IFRS 10 – Consolidated Financial Statements (net www.sedar.com. NWCS and 7P have provided certain data concerning economic trends and performance and market and of any management fees), plus revenue from pending and which Is used In this presentation Including, but not limited to, industry data is based upon or derived from information closed acquisitions as if such acquisitions had occurred on harvest size and yield, and revenue Information. The Company provided by third party consultants, other companies which the January 1, 2019, plus revenue from certain entities to which the Is using this Information with the consent of NWCS and 7P, but Company leases property to, and other industry or government Company provides services, sells non-cannabis input materials, cannot guarantee the accuracy of such Information. sources. 4Front cannot guarantee the accuracy of such and leases operating facilities, and which the Company has an information nor has it independently verified the assumptions option to purchase should applicable state law change (net of upon which projections of future trends and performance are any revenues generated by leasing such facilities, selling such based. This information and data is subject to change and input materials, and provision of services, etc.). 4Front cannot always be verified with complete certainty due to limits considers this measure to be an important indicator of the on the availability and reliability of raw data, the voluntary growth and scope of the business. nature of the data gathering process and other limitations and Adjusted EBITDA is defined by 4Front as earnings before uncertainties inherent in any statistical survey of market or interest, taxes, depreciation and amortization less share-based industry data. As a result, the information and data set forth in compensation expense and one-time charges related to this presentation, and estimates and beliefs based on such acquisition and financing related costs. Similarly, 4Front information and data, may not be reliable. considers this measure to be an important indicator of the The Tumwater facility is operated by Northwest Cannabis financial strength and performance of our business. Solutions (“ NWCS ”) and the Elma facility by 7Point Holdings 4Front | A Mass Market Platform for ConsumerCannabis 3 Opportunity
4Front at a Glance Founded as a consulting company to assist clients in obtaining cannabis licenses, 2011 utilizing standard operating procedures from the famed Harborside dispensary Evolved to obtaining and operating its 2015 own cannabis assets July Completed merger with Cannex, bringing battle-tested production capabilities to the 2019 company Welcome to the new 4Front Cultivation Retail Wellness & Production 4Front | A Mass Market Platform for ConsumerCannabis 4 Opportunity
4Front's Thesis • We believe that execution with a focus on low-cost production and supply chain management should result in the creation of significant shareholder value. • We are taking battle-tested operations – proven low cost, quality production of mass market cannabis products – and replicating them across a portfolio of licenses in nascent and adult use-leaning states. • We believe our knowledgeable team, experience with scale and efficiency, and demonstrated success in highly competitive markets make us uniquely positioned to deliver on our thesis. Our Strategy is Simple 4Front | A Mass Market Platform for ConsumerCannabis 5 Opportunity
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