4Front Ventures Corp. · OTC:FFNTF
4Front Ventures — Investor Presentation (August 2022)
34 slides from 4Front Ventures's investor presentation, August 2022
Slide 1: Inspired by the plant
Inspired by the plant Investor Presentation CSE: FFNT / OTCQX: FFNTF
Slide 2: Disclaimer
4Front | A mass market for consumer cannabis | 2 Disclaimer Information in this presentation is about 4Front (“4Front”), its principals, its business and the industry in which it is a participant. The information is presented for informational purposes only and does not constitute an offering of sec
Slide 3: 4Front | A mass market for consumer cannabis | 3
4Front | A mass market for consumer cannabis | 3
Slide 4: Our belief Our strategy
4Front | A mass market for consumer cannabis | 4 Our belief The sweet spot in the cannabis value chain is the low-cost, high-quality production of cannabis consumer packaged goods at scale Our strategy After perfecting our high quality, high margin production capabilities in Washington state, we’re
Slide 5: Leveraging knowledge, growing business
4Front | A mass market for consumer cannabis | 5 Leveraging knowledge, growing business Replicating our success building one of the most efficient and profitable cannabis operators in Washington in the targeted states of Massachusetts, Illinois, Michigan and California Growing Market Share Our compl
Slide 6: Winning in Washington
4Front | A mass market for consumer cannabis | 6 Winning in Washington Since 2015, 4Front has established a dominant position in Washington State – one of the most competitive and low-priced markets in the country – while maintaining very attractive margins and profitability. 260 * #1 #2 #2 Retail l
Slide 7: A leading producer for leading states
4Front | A mass market for consumer cannabis | 7 A leading producer for leading states 4Front is replicating our tried and Washington Michigan true production capabilities, Population 7.6M Population 9.9M $1.6B 2022E $2.1B 2021(e) supported by our retail stores, in $1.9B at Maturity(e) $2.8B at Matu
Slide 8: Current asset overview
4Front | A mass market for consumer cannabis | 8 Current asset overview Washington Illinois Michigan California Massachusetts Population: Population: Population: Population: Population: 7.6 million 12.8 million 9.9 million 39.6 million 6.8 million Medical & Adult Use Medical & Adult Use Medical & Ad
Slide 9: Driving seed-to-sale efficiency at scale
4Front | A mass market for consumer cannabis | 9 Driving seed-to-sale efficiency at scale We believe efficient, low-cost production will enable 4Front to own the largest market share in a state-by-state basis. Our proven systems and processes are replicated across our sites, resulting in industry le
Slide 10: Our Core Geographies
4Front | A mass market for consumer cannabis | 10 Our Core Geographies
Slide 11: California, a bull market for 4Front
4Front | A mass market for consumer cannabis | 11 California, a bull market for 4Front • Population of 39.6M Capable of producing a minimum of • 2022E Market size of $5.7B, 10x more product per shift than the Company’s largest managed facilities long-term TAM at maturity of in Washington $10B* • Nex
Slide 12: Disruptive manufacturing facility – robust private label pipeline
4Front | A mass massmarket marketfor forconsumer consumercannabis | 12 cannabis | 12 Disruptive manufacturing facility – robust private label pipeline Our Commerce, California facility is one of the largest, most efficient cannabis manufacturing facilities in the world. The details: • 170k sq ft man
Slide 13: 4-Pronged Strategy in California
4Front | A mass market for consumer cannabis | 13 4-Pronged Strategy in California 1. Direct Sales of our 2. Third-party 3. Select brand 4. Strategic Retail award winning and processing and acquisitions proven product suite manufacturing • 4Front has more • CA market is ripe for success with greater
Slide 14: Acquisition of Island Cannabis Co.
4Front | A mass market for consumer cannabis | 14 Acquisition of Island Cannabis Co. • Island is widely recognized for its high-quality, diverse line of pre-rolls, flower and infused products, with a loyal following in the extremely competitive California market • Completed April 2022 • Seamlessly i
Slide 15: Acquisition of Bloom Farms
4Front | A mass market for consumer cannabis | 15 Acquisition of Bloom Farms • Announced August 2022 • Beloved California cannabis company known for bringing safe and enjoyable products to consumers in the form of vapes and tinctures. • Will be integrated onto the 4Front platform, achieving a reduct
Slide 16: State of the art facility and methodologies
4Front | A mass massmarket marketfor forconsumer consumercannabis | 16 cannabis | 16 State of the art facility Garlic Z - Holliston and methodologies • Acquired Massachusetts-based New England Cannabis Corporation in January 2022 • Outstanding flower quality – SOP’s now introduced across Massachuset
Slide 17: Multi-phase expansion in Illinois
4Front | A mass market for consumer cannabis | 17 Multi-phase expansion in Illinois Construction of Illinois’ largest indoor cultivation facility will help meet growing demand in the fast-growing Illinois cannabis market. Phase 1 is expected to come online in 2023, in time to serve the massive incre
Slide 18: Our formula for product development
4Front | A mass massmarket marketfor forconsumer consumercannabis | 18 cannabis | 18 Our formula for product development The Future is Evaluating Speed and finished goods. customer agility. demand.
Slide 19: Our formula for product development
4Front | A mass market for consumer cannabis | 19 Our formula for product development The Future is finished goods. At scale. We are focused on long-term brand success by developing finished goods, such as edibles, vapes, tinctures and capsules, as well as flower.
Slide 20: Our formula for product development
4Front | A mass market for consumer cannabis | 20 Our formula for product development Evaluating customer demand is key to efficient product development. We develop multiple flavours of edibles, and analyze market data to determine the best performing flavours and products. We use these insights to
Slide 21: Our formula for product development
4Front | A mass market for consumer cannabis | 21 Our formula for product development Speed and agility in getting products to market is key. 4Front actively monitors the market for product gaps, and using our skillsets and standardized process, we can quickly capitalize, creating a finished product
Slide 22: Building trusted brands
4Front | A mass massmarket marketfor forconsumer consumercannabis | 22 cannabis | 22 Building trusted brands Consistency is key Customers want predictability in their purchases, and this is especially true in the cannabis industry. We believe consistency is an important predictor of overall customer
Slide 23: The growing 4Front brand portfolio
4Front | A mass market for consumer cannabis | 23 The growing 4Front brand portfolio Established and diversified brands at scale Flower Edibles We produce over 19 recreational brands of flower, edibles, tinctures, concentrates and topicals and Concentrates Wellness approximately 1,800 SKUs
Slide 24: Flower
4Front | A mass massmarket marketfor forconsumer consumercannabis | 24 cannabis | 24 MiniBudz Flower $$$ $ Focusing on quality, catering to everybody From the lower and mid-price point offerings of Mini Budz and Legends to original premium brand, Private Reserve, to our newest top shelf offerings, w
Slide 25: Flower
4Front | A mass massmarket marketfor forconsumer consumercannabis | 25 cannabis | 25 Flower Brand spotlight Island is a laid-back lifestyle brand celebrating the best California has to offer. • Eco-friendly cultivation practices • Freshness guaranteed due to year-round harvest • Hand-trimmed flower
Slide 26: Edibles
4Front | A mass massmarket marketfor forconsumer consumercannabis | 26 cannabis | 26 Edibles Brand spotlight Born in the Pacific Northwest, Marmas quickly grew into one of the most popular edibles in Washington state where they've been delighting cannabis enthusiasts ever since. As opposed to tradit
Slide 27: Concentrates
4Front | A mass massmarket marketfor forconsumer consumercannabis | 27 cannabis | 27 Concentrates Brand spotlight Crystal Clear delivers a great high every time because we are obsessive about our quality control. Each of our proprietary blends replicates a flower's terpene profile to create the same
Slide 28: Wellness
4Front | A mass massmarket marketfor forconsumer consumercannabis | 28 cannabis | 28 Wellness 4Front | A mass market for consumer cannabis | 31 A wellness supplement for people who want a high-quality, value priced cannabis product to support a healthy, active, and pain-free lifestyle. Verdure, pron
Slide 29: Mission retail
4Front | A mass massmarket marketfor forconsumer consumercannabis | 29 cannabis | 29 Mission retail 4Front | A mass market for consumer cannabis | 33 A mission to serve Mission Dispensaries serve as the retail component in our vertically integrated model. These storefronts provide a high- touch venu
Slide 30: High Performance
4Front | A mass massmarket marketfor forconsumer consumercannabis | 30 cannabis | 30 High Performance • Our retail locations are carefully selected for prime, high-traffic geographies with lasting potential for long term community engagement • 4Front’s robust production methods and D2C approach enab
Slide 31: Where we are
4Front | A mass market for consumer cannabis | 31 Where we are +6.5% YOY REVENUE GROWTH +2.2% $34.5 YOY • Q2 2022 Systemwide Pro Forma $32.4 Adj. EBITDA GROWTH Revenue of $34.5M, +6.5% QoQ • Q2 2022 Adjusted EBITDA of $9.2M, +2.2% QoQ • Q2 2022 Adjusted EBITDA margin of $9.0 $9.2 26.7% vs 22% in Q2
Slide 32: Designed to serve the market on the cusp of explosive growth
4Front | A mass market for consumer cannabis | 32 Designed to serve the market on the cusp of explosive growth • We have opened the world’s largest cannabis processing facility in Commerce, CA • State-of-the-art 170k sq ft manufacturing-only facility ramping up and now serving the $3B CA market • Al
Slide 33: Operational leadership
4Front | A mass market for consumer cannabis | 33 Operational leadership Leo Gontmakher Andrew Thut Chief Executive Officer Chief Investment Officer Leo co-founded Northwest Cannabis Solutions, which under his Andrew was an early investor in 4Front, joining the company full time in leadership grew t
Slide 34: Contact
4Front | A mass market for consumer cannabis | 34 Contact Andrew Thut Leo Gontmakher Chief Investment Officer, 4Front Chief Executive Officer Ph: 617.413.0069 Email: [email protected] 4frontventures.com
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