Avant Brands Posts Record Preliminary Q4 and Year-End Fiscal 2022 Revenues
Record Gross Revenue⁽ᴬ⁾ of $8.8 million in Q4 2022 (vs. $2.8 million in Q4 2021)
Record Gross Revenue⁽ᴬ⁾ of $22.6 million in fiscal 2022 (vs. $11.0 million in fiscal 2021)
Kelowna, BC – January 23, 2023 – Avant Brands Inc. (TSX: AVNT) (OTCQX: AVTBF) (FRA: 1BU0) (“Avant” or the “Company”), a leading producer of innovative, premium handcrafted cannabis products, is pleased to announce that, based upon information currently available to management, it anticipates reporting gross revenue of approximately $8.8 million⁽ᴬ⁾ for the fourth quarter of 2022 and gross revenue of approximately $22.6 million⁽ᴬ⁾ for the year-ended November 30, 2022, both of which represent record revenue numbers for the Company.
These preliminary fourth quarter revenue numbers represent an increase of approximately $4 million (+88%) as compared to the third quarter of 2022 and an increase of approximately $6 million (+219%) as compared to the fourth quarter of fiscal 2021. Fiscal 2022 revenues grew approximately $11.5 million (+105%) over the prior year.
“The 2022 fiscal year was a record year for Avant as we continue to demonstrate that we are capable of producing high-quality cannabis, at scale. We are excited for the year ahead, as we expect to leverage the pending acquisition of The Flowr Group (Okanagan) Inc., which is expected to deliver additional growth,” said Norton Singhavon, Founder and Chief Executive Officer of Avant Brands.
Sales and Production
The Company produced approximately 1,752 kilograms of cannabis in the fourth quarter of 2022 and approximately 5,729 kilograms of cannabis for the year-ended November 30, 2022. The Company sold approximately 1,471 kilograms of cannabis in the fourth quarter of 2022 and approximately 3,966 kilograms for the year-ended November 30, 2022, which included the following highlights:
Completed 9 export shipments of approximately 1,284 kilograms of cannabis with a value of approximately $5 million to Israel and Australia during the year-ended November 30, 2022.
Launched direct-to-retail store sales in B.C. and completed approximately $100,000 in sales in the first two months of shipments.
Entered new provincial markets (i.e. Newfoundland and Labrador & Prince Edward Island).
Ramped up 3PL Ventures Inc., a 50% owned joint venture for which the Company has entered into an agreement to acquire the remaining interest, to be fully staffed and operational in a single year (first harvest in December 2021; 5 harvests in November 2022).
Launched new and innovative products under our BLK MKTᵀᴹ Treehuggerᵀᴹ, Cognōscenteᵀᴹ and Tenzoᵀᴹ brands.
Low credit risk on accounts receivable with no significant uncollectible balances during the year ended November 30, 2022.
The Company is expected to report its audited financial results for the fiscal year ended November 30, 2022, after the close of markets on Wednesday, February 22, 2023, and will hold a conference call the following day at 1:00 PM PDT / 4:00 PM EDT.
Note⁽ᴬ⁾ : All figures reported above with respect to the fourth quarter ended November 30, 2022, are preliminary and are unaudited and subject to change and adjustment as the Company prepares its consolidated financial statements for the years ended November 30, 2022, and November 30, 2021. Accordingly, investors are cautioned not to place undue reliance on the foregoing information. The Company does not intend to provide preliminary results in the future. The preliminary results provided in this news release constitute “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws, are based on several assumptions and are subject to a number of risks and uncertainties. Actual results may differ materially. See “Cautionary Statement Regarding Forward-Looking Information” below. All references to “$” in this news release are to Canadian dollars.
About Avant Brands Inc.
Avant is an innovative, market-leading premium cannabis company. Avant has multiple operational production facilities across Canada, which produce high-quality, handcrafted cannabis products, based on unique and exceptional cultivars. Avant’s products are distributed via three complementary sales channels: recreational, medical and export. Avant’s recreational consumer brands include: BLK MKT™, Tenzo™, Cognōscente™ and Treehugger™, which are sold in British Columbia, Saskatchewan, Manitoba, Ontario, Atlantic Canada and the territories. The Company’s medical cannabis brand, GreenTec™, is distributed nationwide, directly to qualified patients through its GreenTec Medical portal and through various medical cannabis partners.
Avant is a publicly traded corporation listed on the Toronto Stock Exchange (TSX: AVNT), and cross-trades on the OTCQX Best Market (OTCQX: AVTBF) and Frankfurt Stock Exchange (FRA: 1BU0). The Company is headquartered in Kelowna, British Columbia and has operations in British Columbia, Alberta and Ontario.
To learn more about Avant, access the investor presentation, or learn more about its consumer brands, please visit: www.avantbrands.ca.
For additional information, please contact:
Investor Relations at Avant Brands Inc.
1-800-351-6358
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. 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 and operational results for the fourth quarter and fiscal year-ended November 30, 2022 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 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 approximate revenue for the fourth quarter and fiscal year ended November 30, 2022; the Company’s approximate kilograms of cannabis produced during the fourth quarter and fiscal year-ended November 30, 2022; the Company’s approximate kilograms of cannabis sold during the fourth quarter and fiscal year-ended November 30, 2022; the Company’s expectations regarding future acquisitions and additional growth; the Company’s expectations regarding the release of its audited annual financial statements for the year ended November 30, 2022; and expectations for other economic, business, and/or competitive factors. 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. Financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to various risks as set out herein. Our actual financial position and results of operations may differ materially from management’s current expectations and, as a result, our revenue may differ materially from the revenue values provided in this news release.
All information contained in this news release that is not clearly historical in nature may constitute forward-looking information. Examples of such statements include statements with respect to the Company’s financial results for the fourth quarter and fiscal year-ended November 30, 2022 and the Company’s expected revenue and other preliminary financial and operational results for the fourth quarter and fiscal year-ended November 30, 2022. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including that the preliminary financial and operational results are subject to the completion of the Company’s financial closing procedures and have not been audited or reviewed by the Company’s independent auditor.
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: preliminary financial and operational results are subject to the completion of the Company’s financial closing procedures and have not been audited or reviewed by the Company’s independent auditor; inherent uncertainty associated with projections; expectations regarding future growth and expansion; regulatory and licensing risks; changes in consumer demand and preferences; changes in general economic, business and political conditions, including changes in the financial markets and inflation-related risks; 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; and the risk factors set out in the Company’s annual information form dated February 28, 2022, filed with Canadian securities regulators and available on the Company’s profile on SEDAR at www.sedar.com.
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.