The authorization by Flowr Okanagan and The Flowr Canada Holdings ULC ('Flowr ULC') to enter into the Stalking Horse Purchase Agreement and its acceptance as the Stalking Horse Bid (as defined in the SISP) is subject to approval by the
'Continuing on from a strong record third quarter, we anticipate that the overall global demand for Avant's products exceeds our current output,' said Norton Singhavon, Founder and Chief Executive Officer of Avant. 'As a result, Avant has entered into the Stalking Horse Purchase Agreement in order to satisfy this demand.
The Stalking Horse Purchase Agreement was entered into between the Purchaser, Flowr Okanagan and Flowr ULC. The purchase price payable by the Purchaser for the Purchased Shares pursuant to the Stalking Horse Purchase Agreement shall be equal to
The Purchase Price will be satisfied through: (a) a credit bid of the DIP Loan (as defined below) in a principal amount of
If the transaction contemplated by the Stalking House Purchase Agreement closes, the Flowr Okanagan facility would increase Avant's overall square footage of cultivation facilities to approximately 185,000 square feet, and thereby increasing Avant's annual production capacity by approximately 60%(1). It is anticipated that Avant will be one of the largest indoor producers in
The consummation of the transactions contemplated under the Stalking Horse Purchase Agreement are subject to satisfaction or waiver of a number of conditions set forth in the Stalking Horse Transaction Agreement, including, among other things, receipt of regulatory approval, the Stalking Horse Purchase Agreement being determined to be the successful bid in the SISP and the Court granting both an order approving the Stalking Horse Purchase Agreement and an Approval and Vesting Order. If other bids superior to the Stalking Horse Purchase Agreement are submitted in the SISP, an auction will be held, and the Purchaser may elect to increase the Purchase Price or otherwise vary the terms of the Stalking Horse Purchase Agreement.
In the event the Purchaser is not the winning bidder under any such auction, the Stalking Horse Purchase Agreement will be terminated, and the Purchaser will be entitled to payment of a break-up fee in the amount of
The Company previously announced that the Purchaser had executed a term sheet with
About
Avant is an innovative, market-leading premium cannabis company. Avant has multiple operational production facilities across
Avant's recreational consumer brands include: BLKMKT, Tenzo, Cognscente and Treehugger, all produced from rare and exceptional cultivars, and sold in
Avant is a publicly traded corporation listed on the
Contact:
Tel: 1-800-351-6358
Email: ir@avantbrands.ca
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release includes certain 'forward-looking information' as defined under applicable Canadian securities legislation, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is often identified by the words 'may', 'would', 'could', 'should', 'will', 'intend', 'plan', 'anticipate', 'believe', 'estimate', 'expect' or similar expressions and includes information regarding: the consummation of the transaction set out in the Stalking-Horse Purchase Agreement; advances pursuant to the DIP Loan; the Company's expectations that the overall global demand for Avant's products will exceed current output; the use of the Stalking Horse Purchase Agreement to satisfy the anticipated increase in demand; the expected increase to Avant's overall square footage of cultivation facilities and increase in annual production capabilities; the Company's expectation that they will become one of the largest indoor producers of premium cannabis products in
Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Examples include statements that the Company will operate in a fiscally disciplined manner; that the Company will build long-term shareholder value and reduce operational expenses; or that the Company will increase its revenue and gross margins.
Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the ability of the Company to receive, in a timely manner and on satisfactory terms, the necessary regulatory and court approvals; the ability of the parties to satisfy, in a timely manner, the other conditions set forth in the Stalking Horse Purchase Agreement; the prompt and effective integration of
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information, which speak only as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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