4Front's Provides Updates on Business Initiatives and Portfolio Companies

Published: February 4, 2020

4Front's Provides Updates on Business Initiatives and Portfolio Companies

4Front Ventures Corp. highlighted the rapidly improving performance of its Pure Ratios wellness brand, which gained valuable visibility over the weekend during Super Bowl Week in Miami. Led by Founder Chad ConnerSan Diego-based Pure Ratios has a long history in wellness-oriented product development, including the integrated use of cannabinoids for therapeutic benefits. Since joining the 4Front Family as a result of the merger with Cannex in July 2019, Pure Ratios has seen its sales grow exponentially.

“Joining the 4Front Family has allowed us to focus our attention on the most accessible and differentiated products within our portfolio and pipeline, and also enhance our manufacturing and fulfillment capabilities,” Conner said. “The recent acceleration in sales is a direct result of 4Front’s investment and strategic planning, layered on top of our product development capabilities and our deep knowledge of utilizing cannabinoids for therapeutic benefit.”

In the last few months, Pure Ratios has seen a significant uptick in online sales and reorder rates among customers. Its innovative line of transdermal CBD reservoir patches, which can provide relief for up to 96 hours, is a customer favorite and responsible for driving the significant growth in sales.

“I’m most excited to see so many people benefiting from our wellness products and increased access to regulated, high-quality, cannabis-derived products,” Conner said. “I live for the testimonials and witnessing the growing acceptance of adaptogenic plants, which I believe should include therapeutic cannabis.”

Brad Kotansky, 4Front’s CFO, has worked closely with Conner and the Pure Ratios team on its strategic business planning and achieving its growth targets through a direct-to-consumer approach.

“Our deep strategic dive with the Pure Ratios’ team highlighted an incredibly powerful, capital-efficient growth opportunity for 4Front,” Kotansky said. “Supported by overwhelmingly positive customer feedback across its product portfolio—specifically for its transdermal patch—we have recently turned on a direct-marketing approach that capitalizes on our ability to build direct relationships with our customers. We believe that approach has paid off, as evidenced by solid reordering trends.”

Kotansky added: “While the growth is off of a small base, should the momentum continue as expected, it would quickly become a material contributor to 4Front’s 2020 financial performance. We are not currently sharing specific sales numbers, but plan to share financial metrics for Pure Ratios during our Q4 earnings call.”

Echoing the broader team’s excitement, 4Front CEO Josh Rosen said, “It’s gratifying to see the investment of energy we put into the Pure Ratios’ team and business structure showing such quick results. I’m not one for hyperbole, yet the feedback on the functionality of our therapeutic patch mixed with the sales acceleration and strong reorder rates confirms our initial thoughts at the time of acquisition that Pure Ratios’ patch is a potential ‘killer app’ for wellness-oriented cannabis products.”

Rosen added: “We’re obviously excited about the product and have set up a discount code for 4Front investors or interested investors who would like to try it for themselves.”

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