Multistate cannabis operator 4Front Ventures Corp. hired a new CEO and plans to convert $23 million worth of its senior secured debt into equity.
Approximately 44% of the company’s senior secured debt will be converted into subordinate voting shares at a price of 0.125 Canadian dollars ($0.094) per share, according to a news release published Monday.
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Phoenix, Arizona-based 4Front also is providing 15% warrant coverage at an exercise price of CA$0.144, with each warrant exercisable for one subordinate voting share over a period of three years.
The remaining $28.7 million loan will stay unchanged, with a 12% interest rate.
The amendment is subject to approvals.
Meanwhile, 4Front announced Andrew Thut as its new CEO, effective Jan. 8.
Thut previously was the company’s
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