Thank you operator and welcome everyone to 4Front Ventures earnings call for the fourth quarter of 2020. I'm joined today on the call by entire 4Front management team.
We have Leo Gontmakher, our CEO; President Karl Chowscano; Jake Wooten, our EVP of Finance; Joe Felpham our COO and Peter Rennard our Interim CFO Before I begin, I'm obligated to remind everyone that during the course of this conference call, management may be making some forward-looking statements that are based on current expectations and are subject to a number of risks and uncertainties that may cause actual results to differ materially from expectations. These results are outlined in the risk factors section of our filings and our disclosure materials. Any forward-looking statements should be considered in light of these factors. Please note as Safe Harbor, any outlook we present is as of today and management does not undertake any obligation to revise any forward-looking statements in the future So, with that out of the way, let me give you a very quick overview of the call today.
We have a lot to get through, and we're extremely excited to share recent developments as our company is in a significant growth phase.
As always, I'm going to start reiterating our thesis and strategy as a compny, then I'm going to provide some color on our fourth quarter results and an update on the significant progress we've made in the business. I'll then hand the call over to Leo, who will go into a more detailed review of our operational trends along with highlighting some milestones we’ve achieved exiting 2020, as we set the table for what we think will be step function growth in operating leverage in 2021. We'll conclude with Q&A session, where the entire management team will be available for follow-ups.
So with that, let me begin. I know we have many investors on the call today that are newer to the 4Front story.
So, I'll start again by outlining the 4Front thesis and what we as investors are playing for.
We are entering the golden age for the cannabis industry.
As the pace of state legalization accelerates, and federal and reforms of the federal level are appearing to be increasingly inevitable. From a pure investment standpoint, anticipated reforms in the banking laws should be a game changer leading the way to cost of capital coming down in the space, allowing us to get financing for money center banks, and we think that eventually leads to access to U.S. Exchanges and broad based institutional ownership in the industry.
You combine that with the fact that the business fundamentals of U.S. cannabis continue to be robust in the face of a global pandemic that has caused a lot of economic uncertainty. Industry momentum continues to build. And what we're witnessing here is the emergence of a massive secular growth story on our industry that's still very much in its nascent stages. At 4Front, we believe the sweet spot in that value chain in this industry is low cost production and distribution of cannabis consumer packaged goods.
So for the past six years, 4Front facilities has emerged into a dominant position in Washington State, with a full line of products that are distributed to 260 retail locations in any given month in Washington.
Our facilities are the number one edibles manufacturer in the state, and the number two producer of flour with overall number two market share. We've outperformed over 600 other license holders in one of the most competitive cannabis markets in the world. All achieved while maintaining very attractive margins and profitability.
Our thesis, as I always say is simple. We're replicating these tried and true production capabilities in large and nascent recreational markets of Illinois, Massachusetts, Michigan, and California. All-in, we currently serve an addressable market of over 76 million people. We're pleased to share today important developments as we execute on this thesis. The one, we're seeing a maniacal focus on execution taking hold in our business. We put it this way.
We have skinnies from so many times from -- from so many years competing in the hyper competitive playground of Washington State. And this is a playground that our competitors, particularly in the East Coast Limited License states have never competed against, and from those scars we’re smarter and stronger than ever, and consequently have performed better in our core business than we projected Two, our Q4 2020 system wide pro forma sales was $25 million, an increase of 12% sequentially over the third quarter of 2020. Revenue growth was primarily driven by the first full quarter of rec sales in Massachusetts.
Continued strength in Illinois, where we opened our second dispensing dispensary in mid-December and a solid quarter out of our Washington facilities.
Speaking specifically to the fourth quarter, our Massachusetts revenue grew by more than 75% over Q3, again as we benefited from rec sales, a whole quarter of rec sales in the state and Illinois grew north of 60% quarter-over-quarter benefiting from the reopening of our south Chicago store, and in the full quarter, and as well as opening our second dispensary in Calumet City. Three, we have remained operationally cash flow positive which for the record occurred earlier in the year than we had projected.
Our cash flow from operations in the fourth quarter was $3.2 million. Four, Q4 marked our second consecutive positive adjusted EBITDA quarter, posting $5.9 million in adjusted EBITDA representing a margin of 24%. Adjusted EBITDA is well up from the $3.7 million in Q3 and what was basically flat in Q2 of last year.
So very strong progression. A tight cost controls and accelerating revenues grew strong operating leverage in the back half of the year and positioned us incredibly well entering 2021. The effective margin is growing weekly as we turn on our Georgetown, Illinois facility upgrades and implement more of our quote unquote, practices, all of our effects reflecting our Washington facility standards. Five, we feel great about our balance sheet leaving 2020. In November, we closed an oversubscribed bought deal led by Beacon Securities for $13.2 million. In December, we also closed $33 million deal with IIPR, which provided for sale and leaseback of our cultivation and production facilities in Tumwater, Washington, and Georgetown, Mass. The proceeds from that deal paid down outstanding senior debt to Gotham Green Partners in its entirety.
So as of December 31, we had $18.9 million in cash on the balance sheet, and $47.3 million in related party long term debt which doesn't come due until May of 2024. This sets us up with ample flexibility on the balance sheet. Six, we are effectively on time and under budget with our expansion projects. This is critical. These projects set the stage for our future growth.
As you may recall, we announced in our last earnings call plans to exponentially expand our cultivation and manufacturing presence in Illinois. We're pleased to announce last month that the finalization of plans and funding to bring our scale cultivation and production that comes from one of our 20 called super licenses in the state that allows for 210,000 square feet of canopy to fruition.
We will get into more details later in the call. We're incredibly excited for what we internally referred to as phase one of Big Daddy in Illinois to come online late next year with roughly 65,000 square feet of flowering canopy and 70,000 square feet of production. Seven, in Q4 we also completed the expansion of our existing Illinois Elk Grove village facility from 3000 to 9000 square feet of canopy on time and under budget, as well as the upgrade storage Georgetown facility for the installation of LED lights.
Our operations and construction team is firing on all cylinders and we expect those upgrades to be meaningfully added to 2021 production. Eight, our second Illinois dispensary in Calumet City, Calumet City, I always pronounced that incorrectly, which opened in mid-December was on time and budget, and the dispensary from sales perspective is on fire. It opened strong and that momentum is as carried incredibly well in the Q1 and as quickly became the second bestselling dispensary in our portfolio. Nine, furthermore, we're pleased to announce that the construction of our manufacturing facility in Commerce, California, is expected to be completed as early as April this month.
We expected to open in the next 30 to 60 days.
Given the success of our facilities products, products in Washington, we're again we're the number one and number two in the state for edibles and flour respectively. And the translation of that success that can now be introduced products and brands into Massachusetts in Illinois. The Company is excited and seem to be entering the $3 billion California market. The automated state of the art commerce facility has 185,000 square feet of manufacturing only, and incorporates unprecedented capacity for finished goods manufacturing. It is similar to the scale seen in the traditional consumer packaged goods industry. Commerce will have the ability to produce over 10 times the current capacity of 4Fronts 40,000 square foot Washington production hub, which is currently the number one producer of derivative cannabis products in Washington State. We look forward to the first product hitting California retail shelves in May 2021.
So our thesis is proving that we are successfully introducing our brands and products from Washington into new markets. The feedback we've gotten for our customers in Mass and Illinois has been fantastic. And while our Washington facilities system wide revenues were nearly 14% year-over-year in 2020. We had an expected seasonal dip in Q4. A major contributor to our facility success in 2020 is the onset of better wholesale prices in Washington as capacity continues to leave that market which benefits us. The finish up along with the solid sales trends, we continue to see the benefit of our operational focus and the right sizing of our cost structure. Since late last year, we've reduced our go-forward corporate overhead expense by over 50% through reductions of headcount and streamlining of operations. The company has generated positive operating cash flow since August. And as I said, it was several, several months ahead of our internal projections.
All of this again sets us up for step functioning operating leverage as we continue into 2021. Having said that, I'll now turn the call over to Leo, our CEO, who will delve a bit deeper into our assets by state and provide us additional color on near term and medium term plans. Leo?