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4FRONT 4Front Ventures Reports Third Quarter 2021 Financial Results and Provides Business Update Systemwide Pro Forma Revenue of $ 33.1 million compared to $ 22.3 million in Q3 2020 , increased 48 % year over year , and decreased 4 % sequentially as compared to Q2 2021 GAAP - reported revenue of $ 25.9 million , an increase of 70 % year over year and a decrease of 4 % from Q2 2021 Q3 2021 Adjusted EBITDA increased 103 % to $ 7.5 million as compared to $ 3.7 million in Q3 2020 , representing an Adjusted EBITDA margin of 23 % as compared to an Adjusted EBITDA margin of 22 % in Q2 2021 Commenced Construction on the First Phase of an up to 558,000 Sq . Ft . Cultivation and Production Facility in Matteson , Illinois State - of - the - art 170,000 Square Foot Manufacturing Facility in Commerce , California Now Officially Open and Operational Announced Proposed Acquisition of Massachusetts Based New England Cannabis Corporation The Company's Existing Licensed Projects at Maturity Represent a Long - term Revenue and EBITDA Opportunity Upwards of $ 650 Million and $ 250 Million Conference call to be held today , November 17 , 2021 at 5:00 p.m. ET PHOENIX , Ariz . , Nov. 17 , 2021 / CNW / - 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 third quarter ended September 30 , 2021 ( " Q3 2021 " ) . All financial information is presented in U.S. dollars unless otherwise indicated . Q3 2021 Financial Results Highlights • Systemwide Pro Forma Revenue of $ 33.1 million compared to $ 22.3 million in Q3 2020 , an increase of 48 % year over year and decrease of 4 % from Q2 2021 • GAAP - reported revenue of $ 25.9 million , an increase of 70 % year over year and a decrease of 4 % from Q2 2021 • Adjusted EBITDA of $ 7.5 million , an increase of 103 % year over year and flat as compared to Q2 2021 , representing an Adjusted EBITDA margin of 23 % as compared to an Adjusted EBITDA margin of 22 % in Q2 2021 Q3 2021 Operational Highlights and Current Developments • California 。 The Company's state - of - the - art 170,000 square foot production facility in Commerce , California is now open and operational following permitting delays experienced during the local approval process . Scaled production and inventory build began this month with initial weekly production volumes in excess of those currently achieved in the Company's market - leading Washington facilities . Pre - commercial sales activity has been strong , and first revenues were achieved this week . • Illinois 。 The Company closed the first phase of its multiphase expansion project of an up to 558,000 square foot new cultivation and production facility in Matteson , Illinois . • Construction on Phase 1 , a 350,000 square foot cultivation and production facility , began in Q3 2021 and is expected to be completed in Q4 2022. The facility is expected to begin operations in Q1 2023 . • Massachusetts 。 In August , the Company opened its third adult - use dispensary , Mission Brookline , serving the Allston Innovation Corridor , a vibrant community within the wider Boston University and Boston metropolitan area . 。 The Company announced a definitive agreement in October to acquire New England Cannabis Corporation ( " NECC " ) and its fully operational 55,000 square foot cultivation and production facility , more than doubling 4Front's total flower canopy and tripling the current processing and manufacturing space in the state upon closing . Management Commentary " In the third quarter we reached several substantial operational milestones that we believe have set the table for our growth well through 2022 and beyond , " said Leo Gontmakher , Chief Executive Officer of 4Front . " While we experienced some regulatory delays in getting Commerce up and running , we are more confident than ever that we have the tools , facilities , and teams in place to meet our considerable growth expectations in the coming year . " " During the quarter we made meaningful progress in the development of our three key growth markets of California , Illinois , and Massachusetts , " Mr. Gontmakher added . " In Illinois , we officially broke ground this summer on the construction of our cultivation and production facility in Matteson . Construction of the facility is expected to last through 2022 , with Phase 1 anticipated to come online in the first quarter of 2023 , offering 4Front's in- house brands and products to the growing retail and wholesale markets in the state . " " Following the opening in Brookline of our third adult - use Mission dispensary in Massachusetts , we were thrilled to announce our proposed acquisition of New England Cannabis at the beginning of October . We believe that the acquisition of NECC and its fully operational , brand - new cultivation and production facility will more than double our total flowering canopy in Massachusetts and is expected to be accretive to 2022 EBITDA and beyond . As we continue to bring our high quality , low - cost cultivation and efficient production methodologies to Massachusetts , we are confident that the mechanics are now in place for continued operational efficiency at scale , " he continued . " In California , we are happy to announce that our highly anticipated 170,000 square foot manufacturing facility in Commerce is now open , operational , and currently manufacturing nine of 4Front's 20 brands and over 160 different SKUs . We will be providing our suite of high - quality , branded products and wholesale goods to licensed dispensaries throughout the state through our partnership with Nabis , a leading distributor in the California market . As our Commerce team continues to ramp up production , we fully expect the facility will soon become the premier multi - product manufacturer in the country due to the sheer scale and its high - throughput efficiencies , " said Mr. Gontmakher .