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Summa Silver Significantly Expands the High-Grade Hughes Property in Nevada

New claims cover prospective areas of open-ended and undrilled targets

Vancouver, BC Summa Silver Corp (“Summa Silver” or the “Company”)(TSXV:SSVROTCQB: SSVRFFrankfurt: 48X) announces it has acquired an additional 1,446 acres of mineral rights contiguous with the Hughes Property near Tonopah, Nevada via claim staking. Key Highlights
  • In-the-Shadow of a Prolific American District: The newly staked claims are contiguous with the Hughes property and are centered approximately 4.6 km northeast of the Belmont Mine and 3 km northeast of the Ruby Discovery (see attached figure).
  • Property Size Increased Substantially: The Hughes Property now covers 5,504 acres, a nearly 40% expansion over the previous 3,969 acres.
  • Unexplored Areas: The claims remain largely unexplored due to the presence of post-mineralization cover rocks.
  • Highly Prospective Ground: Previously reported geophysical and soil geochemical data highlighted numerous untested targets interpreted to have potential for high-grade silver-gold veins, as well bulk-tonnage style disseminated gold mineralization. Many of these targets remained open for expansion towards and into the newly acquired claims.
  • Core Drilling Update: A second drill is now onsite and is fully operational. The focus of the resource-delineation drill program is first on the Murray vein with one rig concentrating on step-out holes and the other drilling infill targets.
Galen McNamara, CEO, stated: “The acquisition of this new group of claims continues to solidify our land position in this classic American mining district. With the recent purchases first of the Bullfrog district and then the Goldfield district by major mining companies, there are now very few historic districts like Tonopah remaining in the hands of junior mining companies in Nevada. We believe strongly that the potential for new discoveries immediately surrounding the Tonopah area remains high, and we plan to aggressively pursue our targets soon.” New Claims The new claims were strategically acquired via claim staking to cover key areas of previously reported open-ended high-chargeability IP (induced polarization) anomalies and path-finder element soil geochemical anomalies (see June 22nd, 2021 and August 16th, 2021 News Releases). The claims are underlain by a thin veneer of young Red Mountain volcanic rocks with numerous erosional windows into older prospective Seibert Formation and Fraction volcanics, host to regionally important gold deposits (e.g., Divide, Hasbrouck, Three hills).  Exploration will focus on these rocks by defining the limits of the strong IP and geochemical targets identified in previous programs. The northeast extent of many of the anomalies are open for expansion towards and into the newly acquired claims (Figure 1). IP lines are planned to extend the 2021 grid to the northeast and soil-geochemical surveys are planned to investigate the extent of the strong multi-element anomalies, interpreted to be locally associated with Seibert and Fraction volcanics. Detailed prospecting and geological mapping are also planned to systematically assess the older rocks for alteration and mineralization. These new data will be used to advance the property-wide exploration model with the aim of developing new drill targets.

Figure 1: Map showing the new Hughes property boundaries and open target anomalies

Qualified Person Summa Silver Corp is a Canadian junior mineral exploration company. The Company owns a 100% interest in the Hughes property located in central Nevada and has an option to earn 100% interest in the Mogollon property located in southwestern New Mexico. The Hughes property is host to the high-grade past-producing Belmont Mine, one of the most prolific silver producers in the United States between 1903 and 1929. The Mogollon property is the largest historic silver producer in New Mexico. Both properties have remained inactive since commercial production ceased and neither have seen modern exploration prior to the Company’s involvement. Follow Summa Silver on Twitter: @summasilver LinkedIn: https://www.linkedin.com/company/summa-silver-corp/ ON BEHALF OF THE BOARD OF DIRECTORS “Galen McNamara” Galen McNamara, Chief Executive Officer [email protected] www.summasilver.com Investor Relations Contact: Kin Communications Giordy Belfiore 604-684-6730 [email protected] Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Cautionary note regarding forward-looking statements This news release contains certain “forward looking statements” and certain “forward-looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management’s current expectations and plans relating to the future. These forward‐looking statements or information relate to, among other things: the release of assays, and the exploration and development of the Company’s mineral exploration projects.  Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual actions, events or results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the requirement for regulatory approvals; enhanced uncertainty in global financial markets as a result of the current COVID-19 pandemic; unquantifiable risks related to government actions and interventions; stock market volatility; regulatory restrictions; and other related risks and uncertainties. Forward-looking information are based on management of the parties’ reasonable assumptions, estimates, expectations, analyses and opinions, which are based on such management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

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Summa Silver Announces Amended Lease Agreements at the High-Grade Mogollon Silver Project, New Mexico

New Right to Repurchase Half of Production Royalty on Important Portions of the Project Vancouver, March 23, 2022 – Summa Silver Corp. (“Summa” or the “Company”) (TSXV:SSVR) (OTCQB: SSVRF) (Frankfurt:48X) is pleased to announce, subject to final approval from the TSX Venture Exchange (the “TSXV”), the Company will issue an aggregate of 27,400 common shares pursuant to two previously entered into amended and restated mining lease agreements (collectively, the “Amended Lease Agreements”). The common shares are being issued at a deemed value of $1.24 per common share, being the 20-day volume weighted average price of the Company’s common shares as traded on the TSXV. Such payments represent the first of ten annual payments due pursuant to the Amended Lease Agreements.  The Amended Lease Agreements relate to mining claims which form part of the Mogollon property near Silver City, New Mexico. Pursuant to the Amended Lease Agreements, the Company has agreed to continue to lease certain mining claims which form part of the Mogollon property for a period of ten years and renewable in 10-year terms at the Company’s election. The Company must make aggregate cash payments of US$99,067 on annual basis for such period under the Amended Lease Agreements. Such annual payments are indexed to the Production Price Index for Industrial Commodities as published by the United States Bureau of Labor Statistics (the “PPI”). The Company may, in its sole discretion, elect to pay an aggregate of US$27,018 (indexed to PPI) of the annual amount payable under the Lease Agreements by issuing common shares at a deemed value equal to the 20-day volume weighted average price of the Company’s common shares as traded on the TSXV. The Company has also granted a 4% partially repurchase-able production royalty on the mining claims that are subject to the Amended Lease Agreements. The previously existing lease agreements did not provide for any repurchase of the royalty. Under the first Amended Lease Agreement, the Company has the ability to repurchase up to 2% of the royalty for aggregate cash payments of US$1,000,000 (US$125,000 for 0.5%; US$125,000 for an additional 0.5%; US$125,000 for an additional 0.5% and US$500,000 for an additional 0.5%). Under the second Lease Agreement, the Company has the ability to repurchase up to 2% of the royalty for aggregate cash payments of US$2,000,000 (US$250,000 for 0.5%; US$250,000 for an additional 0.5%; US$500,000 for an additional 0.5% and US$1,000,000 for an additional 0.5%). All payments payable in connection with the repurchase of any portion of the royalty are indexed to the PPI. The first three buyback payments under the Lease Agreements must be made in cash. The Company may, in its sole discretion, elect to pay one-half of the final buyback payment by issuing common shares at a deemed value equal to the 20-day volume weighted average price of the Company’s common shares as traded on the TSXV. All future issuances of common shares of the Company pursuant to the Lease Agreements are subject to approval from the TSXV, in accordance with the requirements and policies of the TSXV. Galen McNamara, CEO, stated: “These amended lease agreements represent a strong step towards reducing potential production royalty burdens on important portions of the property, including the Consolidated Extension drilling area. The previously existing lease agreements provided the underlying property owners with a 4% production royalty and no Company buy-back option. The Company now has the ability to repurchase 2% of that royalty on equitable terms for all parties. We would like to thank the underlying landowners for their long-term commitment to the area and for working with us so closely to get these agreements done.” About Summa Silver Corp Summa Silver Corp is a Canadian junior mineral exploration company. The Company owns a 100% interest in the Hughes property located in central Nevada and has an option to earn 100% interest in the Mogollon property located in southwestern New Mexico. The Hughes property is host to the high-grade past-producing Belmont Mine, one of the most prolific silver producers in the United States between 1903 and 1929. The Mogollon property is the largest historic silver producer in New Mexico.  Both properties have remained inactive since commercial production ceased and neither have seen modern exploration prior to the Company’s involvement. Follow Summa Silver on Twitter: @summasilver LinkedIn: https://www.linkedin.com/company/summa-silver-corp/ ON BEHALF OF THE BOARD OF DIRECTORS “Galen McNamara” Galen McNamara, Chief Executive Officer [email protected] www.summasilver.com Investor Relations Contact: Kin Communications Giordy Belfiore 604-684-6730 [email protected] Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Cautionary note regarding forward-looking statements This news release contains certain “forward looking statements” and certain “forward-looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management’s current expectations and plans relating to the future. These forward‐looking statements or information relate to, among other things: the payment of amounts payable and the issuance of common shares of the Company pursuant to the Lease Agreements; required regulatory approvals; exercise of the Company’s rights under the Lease Agreements; and the exploration and development of the Company’s mineral exploration projects. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual actions, events or results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the requirement for regulatory approvals; enhanced uncertainty in global financial markets as a result of the current COVID-19 pandemic; unquantifiable risks related to government actions and interventions; stock market volatility; regulatory restrictions; and other related risks and uncertainties. Forward-looking information are based on management of the parties’ reasonable assumptions, estimates, expectations, analyses and opinions, which are based on such management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

Anacortes Peruvian Subsidiary Awards Drilling Services Contract And Begins Final Preparations For Phase 1 Drilling Program

VANCOUVER, BC, March 23, 2022 – Anacortes Mining Corp. (“Anacortes” or the “Company”) (TSXV:XYZ, OTCQB:XYZFF) is pleased to announce that its wholly-owned Peruvian subsidiary, Aurifera Tres Cruces S.A. (“ATC”) has awarded the contract for drilling services to Remicsa Drilling S.A. (“Redrilsa”) and is making final preparations for the Phase 1 Drilling Program at its Tres Cruces gold project in the prolific Quiruvilca Mining District in northern Perú.

 Highlights

  1. Redrilsa will mobilize two Christensen CS14-C core rigs to site in early April, with drilling projected to begin by April 15, 2022. Drill roads and drill pads will be constructed by a local contractor, Dakar Driller S.A.C.
  2. Both contractors will utilize local labor to the greatest extent possible in accordance with the Company’s commitment to maximizing local employment.
  3. ATC has assembled a team of experienced geologists to plan and supervise the drilling campaign. Core logging will be done at a facility near the site, and then the core will then be shipped to ATC’s core storage facility in Trujillo for sample preparation and storage. Samples will be sent to Lima for analysis at a certified assay laboratory.
  4. ATC will be using a rigorous QA/QC program consistent with NI 43-101 requirements.
  5. Final regulatory approvals for the drilling program are on track and are expected by early April.
  6. The Phase 1 Drilling Program is designed to confirm previous drilling results, expand oxide resources at edges of known mineralization, test targets beyond areas of known mineralization, convert Indicated Oxide Resources to Measured Oxide Resources, and obtain representative samples of “fresh” oxide samples for metallurgical testing.
Jim Currie, CEO of Anacortes, commented: “We are excited to have contracted with Redrilsa to carry out the Phase 1 Drilling Campaign. Redrilsa is a very experienced drilling services provider and has carried out drilling at a number of projects and operations throughout Peru, and specifically in Northern Peru near our Tres Cruces Project. With the contracting in place for drilling and site preparation, we are now making the final arrangements to start our Phase 1 Drilling Program as planned by mid-April. Our experienced and well qualified geology team are anxious to begin drilling to deepen holes that ended in wide zones of higher-grade mineralization, to test the extent of the deposit, and obtain fresh samples required for our upcoming metallurgical testing program”. The Tres Cruces project was last drilled in 2008 by Barrick. To date, 371 holes have been drilled, for a total of 74,000 meters of diamond and reverse circulation drilling. In parallel with the Phase 1 drilling program, ATC has initiated a property wide exploration program consisting of geologic mapping and sampling, geochemistry, and geophysics. These programs will complement the previous exploration work done on the property from 1996 through 2008.

About Anacortes

Anacortes is a new growth-oriented gold company in the Americas, which owns a 100% interest in the Tres Cruces gold project located in Peru. Tres Cruces is one of the highest-grade oxide deposits globally and hosts oxide plus sulphide indicated resources of 2,474,000 oz at 1.65 g/t gold, inclusive of 630,000 oz of high-grade leachable gold at 1.28 g/t gold and inferred resources of 104,000 oz at 1.26 g/t gold. The recently released PEA on the leachable resource at Tres Cruces indicates a robust open-pit, heap leach project. Anacortes is well capitalized and intends to aggressively advance the Tres Cruces Oxide Project through feasibility, permitting and to production as quickly as possible. Additionally, Anacortes will continue to seek further growth opportunities in the Americas, with the goal of creating the next mid-tier multi-asset gold producer.

Qualified Person

The technical content of this news release has been reviewed and validated by James (“Jim”) Currie, P. Eng., a qualified person as that term is defined in National Instrument 43-101. Mr. Currie is the President and CEO of Anacortes Mining Corp. For more information visit: www.anacortesmining.com Twitter: @anacortesmining LinkedIn: Anacortes Mining On Behalf of the Board: James A. (Jim) Currie President & CEO Investor Relations Contact: Kin Communications Inc. 604-684-6730 [email protected] Cautionary Statement on Forward-Looking Information This news release contains forward-looking statements which constitute “forward-looking information” within the meaning of applicable Canadian securities legislation (“Forward-looking Statements”). All statements included herein, other than statements of historical fact, are Forward-looking Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward-looking Statements. The Forward-looking Statements in this news release may include, without limitation, statements about the Company’s expectation that it can receive approval of its application to begin exploration activities and the timing of both that approval and the exploration activities, its expectation that the planned drill program can test the extent of the deposit and increase confidence in the resource and, finally, the Company’s intent to aggressively advance Tres Cruces through feasibility and to production under a heap leach open-pit scenario. Often, but not always, these Forward-looking Statements can be identified by the use of words such as “anticipated”, “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”, “planned”, “reflecting”, “will”, “anticipated”, “estimated” “containing”, “remaining”, “to be”, or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations. Forward-looking Statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the ability of the Company to control or predict and which may cause actual results, performance or achievements to be materially different from any results, performance or achievements expressed or implied by the Forward-looking Statements.  These risks include changes in general economic conditions and financial markets; political risks; risks relating to the current and potential adverse impacts of the COVID-19 pandemic on the economy, financial markets and the Company’s operations; and risks inherent in mineral exploration and development. Although Forward-looking Statements contained in this news release are based upon what each of the parties believe are reasonable assumptions at the time they were made, such statements are made as of the date hereof and the Company disclaims any obligation to update any Forward-looking Statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that these Forward-looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place undue reliance on Forward-looking Statements. The TSXV has in no way approved or disapproved of the contents of this press release.

4Front Ventures Reports Second Quarter 2021 Financial Results and Provides Business Update

Systemwide Pro Forma Revenue1 of $34.4 million compared to $31.4 million in Q1 2021, an increase of 85% year over year and 10% over Q1 2021

Q2 2021 Adjusted EBITDA increased 27% sequentially to $7.5 million as compared to Q1 2021, representing an Adjusted EBITDA margin of 22%

Navy Capital committed to lead financing of proposed accretive acquisition in core market

Reiterated FY2021 guidance for Systemwide Pro Forma Revenue of $170-180 million and Adjusted EBITDA of $40-50 million

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, August 16, 2021 at 5:00 p.m. ET

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 second quarter ended June 30, 2021 (“Q2 2021”). All financial information is presented in U.S. dollars unless otherwise indicated.

Q2 2021 Financial Results Highlights

  • Systemwide Pro Forma Revenue of $34.4 million compared to $31.4 million in Q1 2021, an increase of 85% year over year and 10% over Q1 2021
  • GAAP-reported revenue of $27.1 million compared to $23.0 million in Q1 2021, an increase of 114% year over year and 18% over Q1 2021
  • Adjusted EBITDA increased 27% to $7.5 million compared to $5.9 million in Q1 2021, representing an Adjusted EBITDA margin of 22% as compared to an Adjusted EBITDA margin of 19% in Q1 2021

Operational Highlights

  • Strong performance in sales and product adoption across retail locations, exceeding all internal projections; positive momentum continues in Q3
  • California
    • The Company’s state-of-the-art 170,000 square foot production facility in Commerce, California is complete, and is in the final stages of licensure
  • 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
    • Official groundbreaking, press conference and celebratory ceremony will be held at 10:00 a.m. ET on Tuesday, August 17. Construction will begin in Q3 2021 and is expected to be completed in Q4 2022. The facility is expected to be operational in Q1 2023.
  • Massachusetts
    • The Company received all final approvals to open and operate its third adult-use dispensary in Massachusetts in the Town of Brookline
    • Mission Brookline will open its doors on Saturday, August 21 and will be serving adults 21 years and older in the Allston Innovation Corridor, a vibrant community within the wider Boston University and Boston metropolitan area

Management Commentary

“In the second quarter we continued to build on the strong momentum that began last year,” said Leo Gontmakher, Chief Executive Officer of 4Front. “Following the initiation of adult use sales in Massachusetts and the enthusiastic reception of our Calumet City, Illinois dispensary in late 2020, our steady growth quarter over quarter shows that our strategy of replicating low-cost production methods can rapidly scale in the most attractive markets in the country.”

“We are already off to a great start for the third quarter. With our manufacturing facility in Commerce, California complete and pending its final approvals, we are spring loaded to provide our suite of high-quality, branded products to licensed dispensaries throughout the State, and we fully expect it will soon become the premier multi-product manufacturer in the country due to its scale and efficiencies,” Mr. Gontmakher added. “We also recently announced the closing of the first phase of our highly-anticipated cultivation and production facility in Matteson, Illinois, and are thrilled to officially break ground tomorrow, with the first phase anticipated to be completed in Q4 of 2022, and be operational in Q1 of 2023. The opening of our Mission dispensary in Brookline, Massachusetts will mark our third adult-use dispensary in the State, expanding our footprint as we continue to bring our high standards, low-cost cultivation and efficient production methodologies to Massachusetts.”

Mr. Gontmakher concluded, “We are seeing a marked uptick in merger activity across the industry and with it an appreciation of the advantage of low-cost, scaled operations across a compelling asset base which we believe highlights the advantages of a company like 4Front. Additionally, we are thrilled that Navy Capital is continuing its support of us by providing us with a term sheet to lead the financing of a proposed accretive acquisition to strengthen our position in a key market as the pace of consolidation picks up. To that end, as CEO, I am more confident than ever in our strategy, fundamentals, asset base, and current growth ramp of our business as we look ahead to 2022.”

Business Updates and Developments

Systemwide pro forma revenue increased 10% to $34.4 million in Q2 2021, compared to $31.4 million in Q1 2021. Retail sales and product adoption continue to exceed internal expectations. The increase in revenue was primarily due to strong sales in Massachusetts and Illinois, and all retail locations across the portfolio continued to perform above our expectations, a trend that has continued into Q3.

Q2 2021 Adjusted EBITDA grew 27% sequentially to $7.5 million, up from $5.9 million in Q1 2021, representing an Adjusted EBITDA margin of 22% as compared to an Adjusted EBITDA margin of 19% in Q1 2021. The favorable changes were largely due to higher dispensary sales overall, a greater proportion of retail sales coming from the Company’s internally produced products, and reductions in cost per gram in the Company’s Illinois cultivation facility following the expansion completed last quarter.

4Front has received a capital commitment from Navy Capital to lead in the financing of a proposed accretive acquisition. The Company is moving toward signing a definitive acquisition agreement to significantly bolster presence in a core market, and has executed a term sheet with Navy Capital with respect to a convertible debt financing in connection with the funding requirements to complete the acquisition.  Once closed, which will be subject to the execution of definitive agreements and satisfaction of regulatory and other conditions, management believes this acquisition would solidify the Company’s scaled position in this core market and would be accretive to EBITDA.

The Company’s fully-funded, state-of-the-art 170,000 square foot manufacturing facility in Commerce, California is now complete and is awaiting final local approval for its Certificate of Occupancy. The Company’s manufactured products will be sold to licensed dispensaries in California, and the first suite of available products will include gummies, hard candy, caramels, fruit chews, mints, capsules, tinctures, vapes and infused pre-rolls, including favorites like Marmas™, Pebbles™, Chewees™, Hi-Burst™, Verdure™ and Terp Stix™. The Company’s partnership with Nabis, a leading distributor of cannabis products to more than 750 dispensaries in California, covering 99% of licensed retailers in the state, will ensure statewide distribution to retail locations on day one of production. The Company has also deepened its relationship with Nabis with their commitment to lease 20,000 square feet of the facility enabling retail products to dovetail seamlessly and efficiently into inventory for distribution.

Nominal delays experienced during the local regulatory approval process are not expected to materially affect stated guidance for fiscal year 2021.

The Company’s third Massachusetts Mission Dispensary has been approved and will open in Brookline this week. The Company received its Certificate of Occupancy and approval to operate from the Town of Brookline and received a commencement letter and unanimous approval from the Massachusetts Cannabis Control Commission to operate in the State. The Company’s new storefront is located in one of the largest towns in New England that is also a highly desirable place to live, due to its proximity to job opportunities, public transportation, school systems, and livable neighborhoods that balance green space, historic preservation and outstanding commercial services. Mission Brookline opens on Saturday, August 21, and will offer adults 21 years and older the Company’s existing suite of products such as Funky Monkey™, Legends™, Marmas™, Crystal Clear™ and Hi-Burst™, which have been widely embraced in Massachusetts, Washington and Illinois. The new storefront will also carry a full line of consumer-demanded flower, extracts, edibles, vaporizers, cartridges, batteries, ancillary products and merchandise.

In Illinois, the development of our new cultivation and production facility in Matteson continues as scheduled, with the recent closing of the first phase announced earlier this month. Construction of the first phase, a 250,000 square foot building with 65,000 square feet of flowering canopy and approximately 70,000 square feet of manufacturing space is expected to begin imminently and is anticipated to be completed in Q4 2022. The Company plans to use the facility to produce the Company’s more than 20 in-house brands and 2,000 products, which will be offered to Illinois customers at an accessible price point at its Mission Dispensaries and partner dispensaries across Illinois. The facility is also expected to produce a variety of white-labeled products such as flower, concentrates, edibles, tinctures, gel capsules and other manufactured products for other multi-state operators, cannabis businesses and brands. The full expansion of the facility, if realized, is anticipated to encompass 558,000 square feet to help meet demand in the fast-growing Illinois cannabis market. Phase one of the facility is expected to begin operations in Q1 2023.

Conference Call

The Company will host a conference call and webcast today, Monday, August 16, 2021, at 5:00 p.m. ET to review its operational and financial results and provide an update on current business trends.

To join the call, dial 1-877-407-0792 toll free from the United States or Canada or 1-201-689-8263 if dialing from outside those countries. The webcast can be accessed at this link.

The call will be available for replay until Monday, August 23, 2021. To access the telephone replay, dial 1-844-512-2921 toll free from the United States and Canada, or 1-412-317-6671 if dialing from outside those countries, and use this replay pin number: 13721930.

About 4Front Ventures Corp.

4Front Ventures Corp. (“4Front” or the “Company”) (CSE: FFNT) (OTCQX: FFNTF) is a national, vertically integrated multi-state cannabis operator who owns or manages operations and facilities in strategic medical and adult-use cannabis markets, including California, Illinois, Massachusetts, Michigan and Washington. Since its founding in 2011, 4Front has built a strong reputation for its high standards and low-cost cultivation and production methodologies earned through a track record of success in facility design, cultivation, genetics, growing processes, manufacturing, purchasing, distribution, and retail. To date, 4Front has successfully brought to market more than 20 different cannabis brands and nearly 2,000 unique product lines, which are strategically distributed through its fully owned and operated Mission dispensaries and retail outlets in its core markets. As the Company continues to drive value for its shareholders, its team is applying its decade of expertise in the sector across the cannabis industry value chain and ecosystem. For more information, visit www.4frontventures.com.

Financial Statements

4FRONT VENTURES CORP.

Formerly 4Front Holdings, LLC

Consolidated Balance Sheets

As of June 30, 2021 and December 31, 2020

June 30, 2021 December 31, 2020
ASSETS
Current assets:
Cash $11,563 $18,932
Accounts receivable 917 437
Other receivables 583 1,341
Current portion of lease receivables 3,540 3,450
Inventory 22,600 18,037
Current portion of notes receivable 235 264
Prepaid expenses 2,225 2,275
Total current assets 41,663 44,736
Property and equipment, net 44,270 33,618
Notes receivable and accrued interest 91
Lease receivables 7,156 7,595
Intangible assets, net 27,524 28,790
Goodwill 23,155 23,155
Right-of-use assets 60,701 62,466
Deposits 4,295 4,305
TOTAL ASSETS $208,764 $204,756
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Current liabilities:
Accounts payable $5,484 $4,722
Accrued expenses and other current liabilities 5,569 6,427
Taxes payable 16,665 11,502
Derivative liability 7,223 5,807
Current portion of convertible notes 2,420 1,652
Current portion of lease liability 1,127 1,909
Current portion of contingent consideration payable 3,316 2,393
Current portion of notes payable and accrued interest 4,119 3,372
Total current liabilities 45,923 37,784
Convertible notes 14,722
Notes payable and accrued interest from related party 46,843 45,362
Long term notes payable 1,819 1,907
Long term accounts payable 1,600 1,600
Contingent consideration payable 3,103
Deferred tax liability 7,162 6,530
Lease liability 51,849 51,545
TOTAL LIABILITIES 155,196 162,553
SHAREHOLDERS’ EQUITY (DEFICIENCY)
Equity attributable to 4Front Ventures Corp. 273,875 250,583
Additional paid-in capital 47,491 42,116
Deficit (267,860) (250,548)
Total 4Front Ventures Corp. shareholders’ equity 53,506 42,151
Non-controlling interest 62 52
TOTAL SHAREHOLDERS’ EQUITY 53,568 42,203
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $208,764 $204,756

4FRONT VENTURES CORP.

Formerly 4Front Holdings, LLC

Consolidated Statements of Operations and Comprehensive Loss

For the Three and Six Months Ended June 30, 2021 and June 30, 2020

Three Months Ended
June 30, 2021
Three Months Ended
June 30, 2020
Six Months Ended June 30, 2021 Six Months Ended June 30, 2020
REVENUE
Revenue from sale of goods  $                         24,452  $                           9,967  $                 44,532  $                  19,722
Real estate income 2,669 2,734 5,559 5,631
Total revenues 27,121 12,701 50,091 25,353
Cost of goods sold (10,816) (8,046) (19,941) (12,695)
Gross profit 16,305 4,655 30,150 12,658
OPERATING EXPENSES
Selling and marketing expenses 6,714 5,488 11,871 12,304
General and administrative expenses 5,083 3,073 10,248 8,181
Equity based compensation 2,979 1,048 5,375 2,275
Depreciation and amortization 861 975 1,635 1,888
Total operating expenses 15,637 10,584 29,129 24,648
Income (Loss) from operations 668 (5,929) 1,021 (11,990)
Other income (expense)
Interest income 8 8 11 64
Interest expense (2,901) (4,877) (5,362) (7,013)
Amortization of loan discount upon conversion of debt to equity (2,915)
Change in fair value of derivative liability (311) (2,843)
Other income 2,682 2,719
Loss on lease termination (331) (1,210)
Total other income (expense) (3,535) (2,187) (12,319) (4,230)
Net loss before income taxes (2,867) (8,116) (11,298) (16,220)
Income tax expense (3,351) (2,373) (6,004) (2,923)
Net loss from continuing operations, net of taxes (6,218) (10,489) (17,302) (19,143)
Net income from discontinued operations, net of taxes 9,840 10,712
Net loss (6,218) (649) (17,302) (8,431)
Net loss attributable to non-controlling interest 5 (38) 10 (26)
Net loss attributable to shareholders  $                         (6,223)  $                            (611)  $                (17,312)  $                  (8,405)
Basic and diluted loss per share  $                           (0.01)  $                           (0.00)  $                    (0.03)  $                    (0.02)
Weighted average number of shares outstanding, basic and diluted 587,218,794 506,379,437 573,108,183 518,950,529

Note Regarding Non-GAAP Measures, Reconciliation, and Discussion

In this press release, 4Front refers to certain non-GAAP financial measures such as Systemwide Pro Forma Revenue and Adjusted EBITDA. These measures do not have any standardized meaning prescribed by GAAP and may not be comparable to similar measures presented by other issuers.

4Front defines Systemwide Pro Forma Revenue as total revenue plus revenue from entities with which the Company has a management contract, or effectively similar relationship (net of any management fee or effectively similar revenue) but does not consolidate the financial results of per U.S. GAAP ASC 810. 4Front considers this measure to be an appropriate indicator of the growth and scope of the business.

Adjusted EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization less share-based compensation expense and one-time charges related to acquisition, financing related costs and other non-recurring expenses. 4Front considers this measure to be an important indicator of the financial strength and performance of our business.

Systemwide Pro Forma Revenue Reconciliation for the Three Months Ended June 30, 2021

Revenue (GAAP) $27,121
Less: Real Estate Income 2,669
Plus: Systemwide Revenue Adjustment 9,927
Systemwide Pro Forma Revenue (non-GAAP) $34,379

This news release was prepared by management of 4Front Ventures. The Canadian Securities Exchange (“CSE”) has not reviewed and does not accept responsibility for the adequacy of this news release. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States.

Forward Looking Statements

Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in 4Front Ventures’ periodic filings with securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should,” and similar expressions, are forward-looking statements.

Forward-looking statements may include, without limitation, statements related to future developments and the business and operations of 4Front Ventures, statements regarding when or if transactions will close or required conditions to closing will be attained, statements regarding future financial performance of the Company, statements regarding commencement and completion of construction of facilities and distribution of product, the availability of financing, the accretive nature of transactions, the ability to enter into definitive agreements for funding and acquisition opportunities, the impact of the transactions on the current and future business of 4Front and other statements regarding future developments of the business. Although 4Front Ventures has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on entering into definitive agreements and satisfying closing conditions, obtaining regulatory approvals; and engagement in activities currently considered illegal under U.S. federal laws; change in laws; limited operating history; reliance on management; the impact of Covid-19; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry; and regulatory or political change.

There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.

Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. 4Front Ventures disclaims any intention or obligation to update or revise such information, except as required by applicable law, and 4Front Ventures does not assume any liability for disclosure relating to any other company mentioned herein.

4Front Investor Contacts
Andrew Thut, Chief Investment Officer and Interim Chief Financial Officer
[email protected]
602-633-3067

Brian Pinkston
MATTIO Communications
[email protected]
703-926-9159

4Front Media Contacts
Ellen Mellody
MATTIO Communications
[email protected]
570-209-2947


[1] See “Note Regarding Non-GAAP Measures, Reconciliation, and Discussion” below for more information regarding non-GAAP measures referred to herein: Systemwide Pro Forma Revenue and Adjusted EBITDA

LEAF Mobile Reports Second Quarter 2021 Financial Results

Revenue growth of 28% vs the same period last year

Year to date proforma revenue growth of 38% vs same period last year

Year to date proforma adjusted EBITDA growth of 100% vs same period last year

Total liquidity of $30.0M vs $13.0M at year end 2020

Signed 4 new IdleKit platform partners, expanding game pipeline by an additional 9 games 

Vancouver, BCLEAF Mobile Inc. (TSX: LEAFOTCQB: LEMLF) (“LEAF” or the “Company“), Canada’s leading free-to-play mobile game group, today announced financial results for the second quarter ended June 30, 2021. All amounts are stated in Canadian dollars unless otherwise indicated.

“We saw strong results for our second quarter, which is a historically slower quarter across the mobile game industry. This quarter was also unique as we saw global reopening plans and changes to IDFA in Apple’s iOS operating system start to enter the mobile market and evolve conventional marketing practices. In spite of this, our investments in our games continued to pay off, allowing us to continue to outperform the first half of 2020 with good player retention from our existing games,” said Darcy Taylor, CEO of LEAF. “Looking at our IdleKit business, we’ve continued to maintain the momentum we saw at the start of the year, attracting 4 new IdleKit partners including Mighty Kingdom Games, which recently listed on the Australian Stock Exchange. These 4 new partners will add up to an additional 9 games to our existing pipeline, which will result in the most games in development we’ve ever had.”

Second Quarter 2021 Highlights:  

  • Revenue was $22.5 million, a 28% increase vs Q2 2020 revenue of $17.6 million.
  • Proforma YTD revenue was $47.8 million, an increase of 38% vs same period 2020 revenue of $34.7 million.
  • Proforma YTD Adjusted EBITDA was $5.6 million, an increase of 100% vs same period 2020 Adjusted EBITDA of $2.8 million.
  • Strengthened balance sheet by approximately $17 million from 2020 YE with the combination of $2.0 million in cash from operations and a $15.0M credit facility provided by a Tier 1 Canadian Bank.
  • Signed 4 new IdleKit partners, Big Foot Gaming, Tiny Rex Games, Game Masons, and Mighty Kingdom Games, to develop and publish 9 new game titles.
  • Partnered with the Worldwide Asset eXchange Blockchain (“WAX”), on the launch of an NFT-based collectible card game, Bud Farm Nifty Stash.
  • Recognized as a top Canadian Small & Medium Employers at Canada’s Top 100 Employers 2021.
  • Secured a US listing on OTCQB under symbol “LEMLF” and obtained DTC eligibility from The Depository Trust Company (“DTC”) to facilitate electronic settlement and transfer of LEAF’s common shares in the United States.
  • Entered into a definitive agreement to acquire Truly Social Games, a developer and publisher of mobile games with studios in Vancouver and Minsk.

“We continue to see the benefits of our investments in key areas that drive long-term revenue and margin growth. We’re excited for the back half of the year as we will see multiple game launches, including RuPaul’s Drag Race Superstar,” continued Mr. Taylor. “We will continue to execute on our 3-pillar strategy of combining accretive acquisitions, organic game growth and distributed growth through our proprietary IdleKit platform licensing.”

Events subsequent to Second Quarter 2021: 

  • Effective August 17, 2021, LEAF will consolidate its issued and outstanding Common Shares on the basis of up to 10 “old” pre-consolidation shares for every 1 “new” post-consolidation share, as approved by its shareholders at LEAF’s most recent AGM held on June 29, 2021.  The Common Shares will commence trading on the TSX on a post-consolidation basis at the open of markets on August 17, 2021.  The post-consolidation Common Shares will continue trading on the TSX under the symbol “LEAF.”

“It is clear that our shareholders also see the value in a share consolidation. We feel that the consolidation may attract more institutional investors, open up further opportunities for more senior listings, and better reflect the value of the Company,” commented Darcy Taylor.

Certain information provided in this news release is extracted from the unaudited condensed consolidated interim financial statements (the “Financial Statements”) and Management’s Discussion & Analysis (“MD&A”) of the Company for the three months ended June 30, 2021 and should be read in conjunction with them. It is only in the context of the fulsome information and disclosures contained in the Financial Statements and MD&A that an investor can properly analyze this information. The Financial Statements and MD&A can be found under the Company’s profile on SEDAR and EDGAR.

Conference Call Information

The Company will hold a conference call to discuss its performance with the investment community at 2:00 p.m. PT today. Related earnings release materials can be found on LEAF’s website at https://leafmobile.io/investors/financial-information/.

Conference Call Details:

Toll Free Dial-In Number: +1 (833) 772-0399

International Dial-In Number: +1 (236) 738-2279

Conference ID: 6266397

A replay will be available starting at 6:30 a.m. PT August 17, 2021 until September 16, 2021 by dialing +1 (800) 585-8367 or +1 (416) 621-4642 and entering the conference ID 6266397.

About Leaf Mobile Inc.

LEAF Mobile Inc. (TSX: LEAFOTCQB: LEMLF) is a leading free-to-play mobile game group, creating engaging games that produce enduring player loyalty. Our studio groups entrepreneurial culture is anchored in creativity, execution, and growth through a diverse portfolio of original and licensed IP mobile games that include: Archer: Danger Phone, Bud Farm Idle Tycoon, Cheech & Chong Bud Farm, The Goldbergs: Back to the 80s, It’s Always Sunny: The Gang Goes Mobile, Trailer Park Boys Grea$y Money and the soon to be released, RuPaul’s Drag Race Superstar.

We are headquartered in Vancouver, Canada and our games are available worldwide on the App Store and Google Play. For further information, please visit: www.leafmobile.io and join our online communities at LinkedIn, Twitter, Facebook, and Instagram.

Additional information about LEAF Mobile Inc. is available at www.sedar.com.

Contact Us

Media Inquiries:  [email protected] +1 604 288 4417

Investor Relations: [email protected] +1 604 684 6370
Suite 909 – 510 Burrard Street, Vancouver, BC, V6C 3A8

Forward Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the proposed transactions described herein. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them.  In particular, the Company cautions that the completion of the proposed transactions cannot be predicted with certainty, and there can be no assurance at this time that all required approvals and consents to effect the proposed transactions will be obtained in the manner noted above or at all. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company’s control. These forward-looking statements are made as of the date of this news release.

LEAF Mobile Announces Date of Second Quarter 2021 Financial Results and Conference Call

Vancouver, BCLEAF Mobile Inc. (TSX: LEAFOTCQB: LEMLF) (“LEAF” or the “Company“), Canada’s leading free-to-play mobile game group, will release its second quarter 2021 financial results on Monday, August 16, 2021 after market close. Following the release, the Company will hold a conference call to discuss its performance with the investment community at 2:00 p.m. PT on the same day.

Related earnings release materials can be found in the Investors section of LEAF’s website at https://leafmobile.io/investors/financial-information/.

Conference Call Details:

Toll Free Dial-In Number: +1 (833) 772-0399

International Dial-In Number: +1 (236) 738-2279

Conference ID: 6266397

A replay will be available starting at 6:30 a.m. PT August 17, 2021 until September 16, 2021 by dialling +1 (800) 585-8367 or +1 (416) 621-4642 and entering the conference ID 6266397.

Media Inquiries:
[email protected]
+1 604 288 4417

Investor Contact:
[email protected]
(604) 684-6730
909 – 510 Burrard Street, Vancouver, BC, V6C 3A8

Forward Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the proposed transactions described herein. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them.  In particular, the Company cautions that the completion of the proposed transactions cannot be predicted with certainty, and there can be no assurance at this time that all required approvals and consents to effect the proposed transactions will be obtained in the manner noted above or at all. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company’s control. These forward-looking statements are made as of the date of this news release.