4Front Ventures Reports 1st Quarter 2023 Financial Results.

PHOENIX: 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) ("4Front" or the "Company"), a vertically integrated, multi-state cannabis operator and retailer, today announced its financial results for the first quarter ended March 31, 2023 ("Q1 2023"). All financial information is presented in U.S. dollars unless otherwise indicated.

Q1 2023 Highlights

Systemwide Pro Forma Revenue totaled $34.8 million, representing an increase of 7% from the first quarter of 2022 ("Q1 2022")

GAAP revenue increased 17% year-over-year to $30.4 million

Adjusted EBITDA of $3.5 million compared to $7.4 million in Q1 2022

Systemwide Pro Forma Revenue and Adjusted EBITDA are non-GAAP measures. See "Note Regarding Non-GAAP Measures, Reconciliation, and Discussion."

Management Commentary

"I am pleased with our execution in the first quarter as the business continues to perform well, despite a challenging macro backdrop. We ended the quarter with positive operational cash flow in all our core markets, with the exception of California," said Leo Gontmakher, Chief Executive Officer of 4Front. "This achievement has put us on solid ground as we continue to invest additional working capital in key markets and prepare for our next phase of growth in Illinois, which we believe represents the largest market share opportunity over the next 18-24 months."

Gontmakher continued, "In the first quarter, our cultivation and manufacturing activity reached optimal levels to meet increased consumer demand, prompting us to launch dozens of new products in all major product categories, including further expansion of the Island brand and products and the entry into the vape category in Illinois for the first time. Our market share has benefited from growing consumer interest across our footprint, with notable boosts particularly in the highly competitive states of Massachusetts and Illinois, where we continue to aggressively grow our presence and differentiate through steady launches of new products to these markets. Additionally, in California, sales expanded in both our retail and wholesale customer segments and this encouraging performance continued into the second quarter with April being our top-performing month in the state to date. While we are willing to play a longer game in California as the legal market develops, we are not willing to operate at a loss. We have been proactively managing the cost structure of this business and have a high degree of confidence this market will be...