Avant Brands Archives - Green Market Report

StaffJuly 19, 2023
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BusinessDaily Hit

The Daily Hit: July 19, 2023

4min00

The Daily Hit is a recap of the top financial news stories for July 19, 2023.

On the Site

Tobacco Giant Philip Morris to Buy Israeli Cannabis Company

Tobacco titan Philip Morris International Inc. (NYSE: PM), the maker of Marlboro cigarettes, is poised to spend up to $650 million on an Israeli cannabis company that specializes in metered-dose inhalers for pain management. The deal will proceed in stages, with the first being a $120 million investment by Philip Morris in Syqe Medical. Read more here.

New York Nearly Doubles Legal Cannabis Retailers, Approves Farmers Market Rules

The New York Cannabis Control Board meeting Wednesday morning was full of laughter and celebratory tears as over 200 more marijuana entrepreneurs received conditional permits for dispensaries and the state’s legal cannabis growers got the first regulatory layout of how proposed farmers markets will work. Read more here.

10 Predictions for Cannabis for 2024

A new report from cannabis analyst Pablo Zuanic, founder of Zuanic & Associates, outlined 10 predictions for the industry over the next 18 months. Ultimately, Zuanic said he is playing the long game and not being swayed by the noise of the short-term players. Read more here.

Catch Pablo Zuanic at the Green Market Report Finance Summit in New York City on August 3. Learn more here.

Fitch Upgrades Then Withdraws Ratings for Canopy

Fitch Ratings has taken the Canopy Growth Corp. (Nasdaq: CGC) and subsidiary 11065220 Canada’s long-term issuer default ratings on a roller coaster ride of downgrades and upgrades, finally ending the saga in a complete withdrawal of all ratings. Read more here.

Avant Brands Scores Record Profits, Faces $1M Lawsuit over Acquisition Spat

Avant Brands Inc. (TSX: AVNT) (OTCQX: AVTBF) delivered another quarter of record revenues and positive cash flow for the period ending May 31, marking the fourth consecutive quarter of momentum. Read more here.

In Other News

San Francisco

An oversaturated market has pushed the cannabis industry and city leaders in San Francisco to try to slow down the number of businesses opening up over the next four years. An ordinance approved by the board of supervisors and signed by the mayor will create a moratorium on new businesses beginning July 23. Read more here.

BYND Cannasoft

BYND Cannasoft Enterprises Inc. (Nasdaq: BCAN) (CSE: BYND) closed a firm commitment underwritten public offering with gross proceeds to the company of approximately $2.6 million, before deducting underwriting discounts and other estimated expenses payable by the Company. The company intends to use the net proceeds for product design and manufacturing, sales and marketing campaigns, patent prosecution, and working capital. Read more here.

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StaffApril 13, 2023
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BusinessDaily Hit

Daily Hit: April 13, 2023

5min00

The Daily Hit is a recap of the top financial news stories for April 13, 2023.

On the Site

Cannabis Water CEOs Plead Not Guilty in Pump & Dump Scheme

The former CEOs of American Premium Water Corp., Zachary Davis and Ryan Fishoff, pleaded not guilty in a $10 million pump-and-dump scheme that cost Ohio investors more than $219,000. The indictment was first filed in the Northern District of Ohio on March 8 against six individuals associated with the cannabis-infused water company. Read more here.

Michigan Cannabis Market Keeps Breaking Its Own Sales Records

The Michigan marijuana market continued to break records in March, hitting a new sales high of almost $250 million for the month, after selling $2.3 billion in 2022. The new sales record includes $9.8 million in medical marijuana sales and $239.8 million in recreational cannabis sales, for a total of $249.6 million in March, according to data from the Michigan Cannabis Regulatory Agency. Read more here.

Connecticut Approves Three More Social Equity Retailers

The Connecticut Social Equity Council last week signed off on the trio of equity joint venture shops for Budr Hartford Holding Corp. The joint ventures are essentially partnerships between social equity entrepreneurs and established companies that will front startup expenses for the new dispensaries. Read more here.

Avant Brands Delivers Solid Quarter

After the markets closed on Wednesday, Avant Brands Inc (TSX: AVNT)(OTCQX: AVTBF) reported its revenue rose 71% to $7.9 million for the fiscal first quarter that ended Feb. 28, 2023. The net loss from operations of $100,000 (an improvement of 98% or $1 million). Read more here.

Benzinga Miami Reveals More Cracks in Cannabis

Despite a struggling stock market, consumer demand for cannabis is higher than ever – and companies are focused on creating clear, enjoyable experiences to drive growth. That sentiment permeated the recent Benzinga Cannabis Capital Conference in Miami, where cannabis industry leaders gathered to discuss strategies and insights. Read more here.

In Other News

Ignite International Brands

A consulting firm is asking a Nevada federal court to award it nearly $157,000 in legal fees a week after winning a $1.6 million judgment against a cannabis company run by Instagram celebrity Dan Bilzerian in a contract dispute. Read more here.

Urban-Gro

Urban-gro Inc. (Nasdaq: UGRO) signed more than $40 million in contracts in the first quarter 2023, bringing the company’s total backlog to a record $123 million as of March 31, 2023. The company also reiterated its guidance, and in the first quarter of 2023, the company received $2.4 million of cash following a settlement with its former bank. Read more here.

Insa

Marijuana grower and retailer Insa has laid off staff in recent weeks, citing numerous challenges from out-of-state competition that did not exist months before, according to Peter Gallagher, CEO and co-founder. Gallagher did not specify how many jobs were cut. Read more here.

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Debra BorchardtApril 13, 2023
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BusinessPublic

Avant Brands Delivers Solid Quarter

3min00

After the markets closed on Wednesday, Avant Brands Inc (TSX: AVNT)(OTCQX: AVTBF) reported its revenue rose 71% to $7.9 million for the fiscal first quarter that ended February 28, 2023. The net loss from operations of $0.1 million (an improvement of 98% or +$1.0 million).

“Continuing on our momentum from a record 2022 fiscal year, as one of the fastest growing Canadian cannabis companies, we have commenced the 2023 fiscal year with record adjusted EBITDA while generating meaningful cash flows from operations,” said Norton Singhavon, Founder and CEO of Avant.”Furthermore, we expect that the acquisition of the Flowr Group (Okanagan) Inc., will facilitate a continuation of our strong year-over-year growth in sales, cash flow and profitability.”

Avant also reported that its adjusted net income was $250,000 – an improvement of 131% or +$1.0 million. The net and comprehensive loss was $8,000 (an improvement of 98% or +$0.5 million). The company said it produced approximately 2,635 kilograms of cannabis (which includes dried flower and biomass) in the first quarter. The company sold approximately 1,424 kilograms of cannabis during the quarter.

Flowr Group

Avant noted in its earnings statement that it completed the purchase of the Flowr Group (Okanagan) Inc., including Flowr Okanagan’s Kelowna facility. “Subsequent to the completion of the transaction, Avant implemented cost-saving initiatives that generated annualized savings of approximately $1 million (over and above the immediate elimination of The Flowr Corporation’s corporate overhead costs – achieved by purchasing a subsidiary of Flowr Okanagan, which was a subsidiary of The Flowr Corporation, as opposed to the parent company).”  Avant completed the first harvest of an Avant cultivar at the Flowr Facility on March 6, 2023.

The company also completed the purchase of the remaining 50% of 3PL Venture Inc., which included seller financing with terms favorable to Avant, below the industry standards on the interest rate and security.

Avant said in its filing that it intends to finance operating costs over the next twelve months with current cash on hand and cash flow from operations, but is considering additional debt or equity financing as a source of funding for further expansion. As of February 28, 2023, the company maintained a strong financial position consisting of $2.6 million in cash and $17.4 million in working capital.

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Adam JacksonDecember 19, 2022
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Business

Avant Brands Buys Out 3PL Ventures, Wins Bid for Kelowna Grow Facility

4min00

Canadian producer Avant Brands Inc. (TSX:AVNT) (OTCQX:AVTBF) has entered a binding share purchase agreement with F-20 Developments Corp. to acquire the remaining 50% equity stake in 3PL Ventures Inc. for $15 million.

“We are excited to announce the full acquisition of our newest and largest facility, which has been a foundational flagship asset for the highly-sought after products that we produce for Canada and the global market,” said Avant CEO and founder Norton Singhavon.

Under the terms, $1.5 million will be paid in cash with the rest paid in debt and Avant shares.

Avant currently owns 50% of the issued and outstanding shares in the capital of 3PL, a joint venture with the F-20. On closing, Avant will own 100% of the issued and outstanding shares in the capital of 3PL. The transaction is expected to close on or around February 1, 2023.

Acquiring 3PL using stock is subject to approval from the Toronto Stock Exchange.

Singhavon continued, “As 3PL recently became cash-flow positive, we anticipate that it will generate meaningful cash flows to our organization in the near future, which we expect will help accelerate Avant’s future growth and expansion strategy. This acquisition combined with our recent announcement of being the winning bid at the Flowr auction, will set the stage for a transformational 2023 fiscal year for Avant. We look forward to accelerating our rapid growth as we continue working towards becoming Canada’s leading producer of ultra-premium cannabis products.”

The Ontario Superior Court of Justice approved the previously announced definitive purchase agreement to acquire all of Flowr Okanagan and its 85,000-square-foot British Columbia grow facility for $4.015 million and $1.1 million in shares of Avant, plus certain wind-down costs in connection with the Flowr Group’s insolvency proceedings

The news comes after Avant entered into a November stalking horse purchase agreement for the distressed assets.

A stalking-horse bid is an initial bid on the assets of a bankrupt company. Other buyers can submit competing offers following a low-end stalking horse bid.

The deal is expected to close within the first quarter of 2023.

“Over the course of the last year, the Avant team has been seeking investment or acquisition opportunities which would enable us to utilize our strong balance sheet in a manner which maximizes shareholder value” said Singhavon. “As a result, we are extremely pleased with the outcome of Flowr’s restructuring process, as we have always viewed their Kelowna facility as a top-tier and world class asset that would be an ideal fit for the Avant portfolio. We look forward to entering into our fiscal 2023 year with the addition of the Flowr facility and its dedicated team.”

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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis

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