Kelowna - Avant Brands Inc (TSX: AVNT) (OTCQX: AVTBF) (FRA: 1BUP) ('Avant' or the 'Company'), a leading producer of innovative and award-winning cannabis products, proudly announces its audited financial results for the fiscal year ended November 30, 2023 ('Fiscal 2023').

The Company's Fiscal Year 2023 results, demonstrate growth across key financial metrics. Highlights include: Record Gross Revenues: Increasing to a record $30.2 million, representing a 33% increase compared to FY 2022.

Record Cash Flow from Operations-1: Achieving a record $5.4 million, representing a 256% surge compared to FY 2022.

Record Adjusted EBITDA-2: Reaching a record $4.4 million, representing a 132% increase compared to FY 2022.

Continued Positive Performance: Maintaining two consecutive fiscal years of positive cash flow and positive Adjusted EBITDA.

Norton Singhavon, Founder and CEO commented: 'We're thrilled by the remarkable growth across all key financial metrics during Fiscal Year 2023, showcasing our dedication to strategic excellence and operational efficiency. The successful integration of the Flowr Group Okanagan sets the stage for even greater success in Fiscal Year 2024 and beyond, bolstering our expansion efforts and strengthening our position at a global scale. Additionally, the two strategic acquisitions we made during the Fiscal Year 2023 underscores our commitment to long-term success and maximizing shareholder value in a dynamic market.'

Fiscal 2023 Financial Highlights

Gross Revenue was a record of $30.2 million (+33% vs. FY2022)

Net Revenue was a record of $26.3 million (+31% vs. FY2022)

Recreational Net Revenue was a record of $15.8 million (+10% vs. FY2022)

Export Revenue was a record of $10.2 million (+96% vs. FY2022)

Overall gross margin-3 of 34%, (vs. 32% FY2022)

Recreational gross margin of 48%

Export gross margin of 35%

Overall margin reduced by negative margin B2B sales of aged and out of spec product.

Total of 7,105 kg of cannabis sold (+93% vs. FY2022)

Overall weighted average selling price for flower decreased to $4.23 per gram from $6.07 per gram in FY2022, with the recreational cannabis average selling price (net of excise) dropping to $6.31 from $7.75 per gram in FY2022. This decline was influenced by higher bulk export sales and the expansion of adult-use brands like Flowr.

Cash Flow from Operations1 was a record of positive $5.4 million (+256% vs. FY2022)

Adjusted EBITDA-2 was a record of $4.4 million (+132% vs. FY2022)

Adjusted EBITDA Margin-2 (of Net Revenue) of 17%

Selling, General and Administrative Expenses and Corporate Expenses of $8.8 million (+26% vs. FY2022)

Net loss from operations of $1.5 million, compared to a loss of $8.5 million in FY2022

Sixth consecutive quarter of positive Cash Flow-1 from Operations

Fiscal 2023 Corporate Highlights

Canada's Top Growing Companies: The Globe & Mail recently published a list of Canada's Top Growing Companies of 2023, which was sector agnostic. Avant Brands ranked 49th out of 425 companies on this list, at 849% growth over its last three fiscal years. The list did not include any other public or private Licensed Producers, placing Avant as Canada's fastest growing Licensed Producer on this list.

The Flowr Group (Okanagan) Inc. ('Flowr'): In Q1 2023, Avant acquired Flowr, gaining an 80,000 sq ft state-of-the-art indoor cultivation facility (the 'Flowr Facility') in Kelowna, BC, through a Companies' Creditors Arrangement Act Proceeding ('CCAA'). By Q3 2023, Flowr achieved positive Cash Flow from Operations1, paving the way for significant cash flows for Avant. The Flowr Facility facility is now the Company's largest facility and is expected to be essential for Avant's future growth.

Global Distribution: The Company's global distribution channels are experiencing significant growth, with a 78% year-over-year increase. This channel represents Avant's fastest-growing revenue stream, propelling the Company into an exciting phase of expansion. It offers a prime opportunity for Avant to elevate its flagship brand, BLK MKTTM, at the global stage, marking a significant milestone in the Company's journey towards international recognition and success.

3PL Ventures: The Company executed a buy-out of the remaining 50% of the issued and outstanding shares of 3PL Ventures Inc. ('3PL') from F-20 Developments Corp., its previous joint venture partner, at its 60,000 sq ft indoor facility, marking a strategic step forward. This acquisition grants Avant full control over operations and access to robust cash flows. It unlocks opportunities for innovation, streamlining, and optimization. This strategic acquisition strengthens Avant's market position and underscores its commitment to excellence and growth.

Fiscal 2024 Outlook

In the fourth quarter of Fiscal 2023, Avant encountered a temporary decline in sales due to the accumulation of products for large export shipments, all of which were subsequently delivered in the first quarter of 2024. Additionally, declining purchase orders from The Ontario Cannabis Store ('OCS') contributed to this decline. Various factors contributed to the decrease in OCS orders, including inflationary pressures, evolving trends in dried flower consumption, and a heightened demand for larger-format value products.

Additionally, the downturn in Avant's market performance with the OCS was compounded by its limited product visibility and support within major Ontario retail chains (those with 10 or more stores). Avant's offerings frequently suffer from restricted availability and minimal promotional activities within these chains. This situation arises from Avant's current decision to abstain from engaging in data programs, commonly known as 'pay-to-play,' which are typically mandatory for most major retail chains to promote and support products. This strategic choice, made by management of the Company, is aimed at preserving the Company's adult-use gross margins while also ensuring full compliance within The Alcohol and Gaming Commission of Ontario's inducement policy.

Despite the short-term challenges, Avant remains committed to aggressively competing in the Canadian adult-use market while expanding its global distribution channels. The Company anticipates significant growth from global sales, with expected increases in gross revenues ranging between $8.2 million and $8.7 million for the first quarter of 2024. This growth trajectory aims to further solidify the position of BLK MKT as a globally recognized ultra-premium cannabis brand.

About Avant Brands Inc.

Avant stands at the forefront of the cannabis industry as a leading innovator and provider of ultra-premium cannabis products. With a network of operational facilities spanning Canada, Avant specializes in crafting high-quality cannabis products from exceptional cultivars.

Avant's diverse product range is distributed through three distinct sales channels: recreational, medical, and export. Among its recreational offerings are renowned consumer brands like BLK MKT, Tenzo, Cognscente, and Treehugger, available across key markets including British Columbia, Saskatchewan, Manitoba, Ontario, Atlantic Canada, and the territories. Additionally, Avant's medical cannabis brand, GreenTec, serves qualified patients nationwide through its GreenTec Medical portal and trusted medical cannabis partners.

As a publicly traded corporation, Avant is listed on the Toronto Stock Exchange (TSX: AVNT) and cross-trades on the OTCQX Best Market (OTCQX: AVTBF) and Frankfurt Stock Exchange (FRA: 1BU0). Headquartered in Kelowna, British Columbia, Avant operates in strategic locations including British Columbia, Alberta, and Ontario.

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 Company's the Company's dedication to strategic excellence and operational efficiency; expected success and growth in Fiscal 2024 and beyond; the Company's commitment to long-term success and maximizing shareholder value; the Company's expectations regarding significant cash flows; the Company's expectations regarding the Flowr Facility; the Company's intentions to elevate its flagship brand, BLK MKTTM, at the global stage; opportunities for innovation, streamlining and optimization in connection with the acquisition of the remaining 50% of 3PL; management's expectations regarding growth in Canadian adult-use sales in connection with the Company's Quebec listings; the Company's expectations regarding sales growth and expected increases in gross revenues; the availability of the Audited Financial Statements and the MD&A on the Company's SEDAR+ profile and on its website and expectations for other economic, business, and/or competitive factors. To the extent any forward-looking information in this news release constitutes 'financial outlooks' within the meaning of applicable Canadian securities laws, such information is being provided as preliminary financial results and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. 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. Financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to various risks as set out herein. The Company's actual financial position and results of operations may differ materially from management's current expectations and, as a result, the Company's financial results may differ materially. Examples include statements that the Company will build long-term shareholder value and reduce operational expenses; or that the Company will increase its revenue and maintain stable costs.

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: regulatory and licensing risks; changes in consumer demand and preferences; changes in general economic, business and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; compliance with extensive government regulation; public opinion and perception of the cannabis industry; the impact of COVID-19 and the risk factors set out in the Company's annual information form dated February 27, 2023, filed with Canadian securities regulators and available on the Company's profile on SEDAR+ at www.sedarplus.ca.

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.

This news release refers to certain financial performance measures that are not defined by and do not have a standardized meaning under International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board. These non-IFRS financial performance measures are defined in the MD&A. Non-IFRS financial measures are used by management to assess the financial and operational performance of the Company. The Company believes that these non-IFRS financial measures, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company's operating results, underlying performance and prospects in a similar manner to the Company's management. As there are no standardized methods of calculating these non-IFRS measures, the Company's approaches may differ from those used by others, and accordingly, the use of these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

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