A lot less shares circulating out there than I originally thought... the stock is very tightly held...
Warrants at CAD $1.50 expiring in March 2020... IMO this trades up or close to parity...
The additional warrants expiring next year should be the last round of dilution... there aren't that many... I cant see that being a cap factor on SP... chart is firming up nicely for a true reversal...
All IMO...
$FFNTF
SHARE CAPITAL AND MEMBERS’ CAPITAL
Pursuant to the terms of the Arrangement Agreement, the former owners of Holdings exchanged, through a series of transactions, their respective interests in Holdings in exchange for a total of 340,370,271 shares in 4Front when calculated as if all share classes were converted to Subordinate Voting Shares (SVS). Former Cannex shareholders received 190,482,146 shares in 4Front when calculated as if all share classes were converted to SVS. Upon the closing of the transactions contemplated by the Arrangement Agreement, 4Front had a basic total of 530,862,417 shares, when calculated as if all share classes were converted to SVS, and a fully diluted total of 536,767,542 shares when calculated on the same basis. Certain former executives of Holdings who became holders of Class C multiple voting shares of 4Front Ventures Corp., in aggregate, hold approximately 73% of voting control of 4Front.
At September 30, 2019, there were share purchase warrants outstanding to purchase up to 37,418,764 common shares in the following amounts: 7,000,000 warrants at $1.00 expiring November 21, 2021 4,511,278 warrants at $1.33 expiring November 21, 2021 2,010,050 warrants at $1.99 expiring November 21, 2021 23,897,436 warrants at CAD $1.50 expiring in March 2020 The Canadian Dollar (CAD) warrants represent a derivative liability since the currency is of the warrant is CAD which is different than the Company’s functional currency (U.S. $). The fair value of the derivative liability was determined to be $3,162,458 at July 31, 2019 as part of the Cannex purchase price accounting. Between July 31, 2019 and September 30, 2019, the value of the warrants decreased to $127,016 due to a decline in the price of the Company’s stock. The resulting $3,035,442 gain is shown in Other Income (Expense) in the Statements of Operations.
