4 Front Ventures Corp FFNTF announced its financial results for the first quarter of 2022, a vertically integrated and multi-state cannabis operator and retailer.
More than doubled 4 Front's total flower canopy in Massachusetts and doubling its presence as a dominant wholesaler and producer in the state was achieved by the completion of the acquisition of New England Cannabis Corporation.
A definitive agreement was signed to acquire Island Cannabis Co., combining premier California brand with 4 Front's state-of-the-art Commerce, California manufacturing facility acquisition subsequently completed in April 2022. Our business inflected during the first quarter of 2022 because of the investments and efficiencies we made over the last 18 months to meet our long-term strategic goals, said Leo Gontmakher, CEO of 4 Front. We have a fully-capitalized infrastructure in place to drive robust growth through this year. Our thesis of providing consistent, low-cost production at scale continues to work out as designed.
In California, we were proud to announce the acquisition of Island at the end of March and its subsequent closing in April. The Island brand and its seasoned management team are perfect complements to the 4 Front model. The scale of our Commerce operations allows us to buy similarly successful, attractive brands and manufacture them at considerably lower costs, producing strong margins that fall right to our bottom line, Gontmakher said.
The acquisition of the NECC and its state-of-the-art facility, the best we have seen, has resulted in improvements not only in Massachusetts but across our platform as we implement their practices into our own process, Gontmakher said. We're excited to begin our next phase of growth in Illinois, with the first phase of our latest facility in Matteson expected to be completed in six months. The Massachusetts Cannabis Control Commission approved the acquisition of NECC in January 2022. NECC's state-of-the-art 55,000 square foot cultivation and production facility significantly bolsters 4 Front's strategic position in the Massachusetts market and expands the Company's institutional knowledge of lighting, airflow, and fertigation techniques.
In March 2022, 4 Front signed a definitive agreement to acquire Island Cannabis Co., a leading California producer of pre-roll, flower, and concentrate products, and the first California brand to join 4 Front's platform.
The construction of 4 Front's cultivation and production facility in Matteson, Illinois is on schedule and is on schedule for completion in Q 4th, 2022. As the company expands its wholesale business and retail footprint in Illinois, the 250,000 square-foot initial phase is expected to begin operations in Q 1 of 2023.
The adjusted EBITDA for Q 1st 2022 was $9.0 million, up 53% from Q 1st 2021, representing an Adjusted EBITDA margin of 28%. The growth of Adjusted EBITDA and margin is expected to continue through 2023, as 4 Front's operations drive increased production, higher sales volumes, and additional retail opportunities.
As of March 31, 2022, 4 Front had $8.6 million of cash and $48.7 million of debt that was not due until May 2024.
4 Front has 636,636, 686 subordinate voting shares outstanding as of Monday, 2022.