Cannabis Operator 4Front Ventures Issues Restricted Stock Units Following Credit Facility Announcement
Portfolio Pulse from Joana Scopel
4Front Ventures Corp. (OTCQX:FFNTF) has issued 15.9 million restricted stock units (RSUs) to ALT Debt II, LP, following its recent $10-million senior secured credit facility agreement. Each RSU will convert into one Class A subordinate voting share of the company under specific conditions. The company has also restructured a convertible promissory note with Navy Capital Green Fund, Navy Capital Green Co-Invest Fund LLC, and HI 4Front LLC, deferring payment obligations from 2023 to 2024 and revising the interest rate from 6% to 10%.
October 24, 2023 | 7:34 pm
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NEUTRAL IMPACT
4Front Ventures' issuance of RSUs and restructuring of a convertible promissory note could potentially impact its stock price.
The issuance of RSUs could dilute the value of existing shares, potentially leading to a decrease in stock price. However, the restructuring of the promissory note, which includes an increase in the interest rate, could be seen as a positive move by investors, potentially offsetting any negative impact from the RSU issuance.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100