Avant Brands Fully Repays $9.5M Secured Convertible Debenture

Rhea-AI Summary

Avant Brands (OTCQX:AVTBF) completed full repayment of its $9.5M amended and restated convertible debenture in November 2025, eliminating its largest monthly debt obligation and releasing secured operating assets.

The repayment is part of ~$4M total debt repaid in Fiscal 2025 and follows eight consecutive quarters of positive Adjusted EBITDA. Year-to-date cash flows from operating activities rose 111% to $3.7M, while Q3 2025 reported revenue increased 13% to $10.8M and gross profit rose 68% to $1.7M. Key real estate assets including Grey Bruce Farms and Tumbleweed Farms are now unencumbered.

Positive

• $9.5M debenture fully repaid in November 2025
• Fiscal 2025 debt reduction of approximately $4M
• 111% increase in YTD operating cash flows to $3.7M
• Q3 2025 revenue +13% to $10.8M
• Q3 2025 gross profit +68% to $1.7M
• Expanded production footprint ~60% to >185,000 sq ft

Negative

• None.

News Market Reaction

+0.53%

1 alert

+0.53% News Effect

On the day this news was published, AVTBF gained 0.53%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

A&R Debenture principal: $9.5M Debt repaid FY 2025: $4M Operating cash flows: $3.7M +5 more

8 metrics

A&R Debenture principal $9.5M Amended and restated convertible debenture fully repaid in November 2025

Debt repaid FY 2025 $4M Approximate total debt repaid during Fiscal Year 2025

Operating cash flows $3.7M YTD cash flows from operating activities, up 111% YoY

Q3 2025 gross revenue $10.8M Q3 2025 gross revenue, 13% year-over-year growth

Q3 2025 gross profit $1.7M Q3 2025 gross profit, 68% year-over-year increase

Three-year revenue growth 263% Three-year revenue growth used in 2025 Top Growing Companies ranking

Consecutive payments 32 Number of consecutive payments made on the note since February 2023

Total debt repaid $21M More than $21M total debt repaid over company history

Market Reality Check

Price: $0.6800 Vol: Volume 11,027 is below th...

normal vol

$0.6800 Last Close

Volume Volume 11,027 is below the 20-day average of 14,277 (relative volume 0.77x). normal

Technical Shares are trading below the 200-day MA at 0.6, despite the positive balance-sheet news.

Peers on Argus

While AVTBF gained 0.17%, select peers like MVMDF (+27.27%) and PCLOF (+11.11%) ...

While AVTBF gained 0.17%, select peers like MVMDF (+27.27%) and PCLOF (+11.11%) moved sharply higher, indicating mixed, stock-specific action rather than a broad sector move.

Historical Context

5 past events · Latest: Dec 08 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 08	Debt repayment	Positive	+0.5%	Full repayment of $9.5M convertible debenture and balance sheet strengthening.
Oct 15	Q3 2025 earnings	Positive	-15.5%	Q3 revenue, profit, and cash flow growth with continued positive Adjusted EBITDA.
Sep 29	Growth recognition	Positive	+16.6%	Recognition as Top Growing Company with 263% three-year revenue growth.
Jul 15	Q2 2025 earnings	Positive	-8.2%	Sixth positive Adjusted EBITDA quarter and modest revenue growth with margin pressure.
Jun 23	Strategic expansion	Positive	+2.9%	International supply agreements and 30+ new Canadian product listings.

Pattern Detected

Positive operational or recognition news has often led to gains, while earnings releases with generally positive metrics have twice seen notable downside reactions.

Recent Company History

This announcement highlights Avant’s continued deleveraging, fully repaying the $9.5M acquisition-related debenture and contributing to roughly $4M of debt reduction in Fiscal 2025. It builds on Q3 2025 results showing revenue growth to $10.8M, rising gross profit to $1.7M, and year-to-date operating cash flows of $3.7M. Earlier in 2025, Avant reported multiple consecutive positive Adjusted EBITDA quarters and strategic international and domestic expansion, alongside recognition for 263% three-year revenue growth.

Market Pulse Summary

This announcement underscores Avant’s focus on deleveraging and operational execution, highlighted b...

Analysis

This announcement underscores Avant’s focus on deleveraging and operational execution, highlighted by full repayment of the $9.5M debenture and roughly $4M of debt reduction in Fiscal 2025. It builds on eight consecutive positive Adjusted EBITDA quarters, rising Q3 2025 revenue and gross profit, and stronger operating cash flows. Investors may watch future debt levels, cash generation, and execution in international and high-margin product initiatives.

Key Terms

convertible debenture, adjusted EBITDA, non-GAAP

3 terms

convertible debenture financial

"announced the full repayment of its $9.5 million amended and restated convertible debenture"

A convertible debenture is a long-term loan a company issues that pays interest like a bond but can be turned into a set number of the company’s shares under pre-agreed terms. For investors it matters because it mixes safety and upside: you get regular interest and higher repayment priority like a lender, yet you also hold an option to become a shareholder if the stock rises, which can dilute existing owners and change risk and return profiles.

adjusted EBITDA financial

"follows Avant's eighth consecutive quarter of positive Adjusted EBITDA¹"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-GAAP financial

"Adjusted EBITDA is a non-GAAP performance measure."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

AI-generated analysis. Not financial advice.

KELOWNA, BC / ACCESS Newswire / December 8, 2025 / Avant Brands Inc. (TSX:AVNT)(OTCQX:AVTBF)(FRA:1BU0) ("Avant" or the "Company"), a leading producer of innovative and award-winning cannabis products, today announced the full repayment of its $9.5 million amended and restated convertible debenture (the "A&R Debenture"). The final payment was completed in November 2025, retiring in full the obligation originally issued in connection with the 2023 acquisition of 3PL Ventures Inc.

The successful retirement of the A&R Debenture eliminates Avant's largest monthly recurring debt obligation, strengthens the Company's balance sheet, and releases key operating assets from security. The repayment is part of a consistent focus on deleveraging: Avant has now repaid approximately $4 million in total debt during Fiscal Year 2025, reinforcing its ongoing commitment to disciplined financial management. This follows Avant's eighth consecutive quarter of positive Adjusted EBITDA¹ and a 111% year-over-year increase in year-to-date cash flows from operating activities to $3.7 million².

Key Highlights

• Debt Fully Extinguished: The full principal amount of the $9.5 million A&R Debenture was retired in November 2025.

• No Conversion: Repayment was completed without any conversion into common shares.

• Balance Sheet Strength: Eliminates the Company's largest recurring monthly debt obligation, enhancing liquidity for growth initiatives.

• Unencumbered Operating Assets: Key real estate assets-including Grey Bruce Farms and Tumbleweed Farms-are now unencumbered.

• Execution and Discipline: Completed 32 consecutive payments since the note's initial issuance in February 2023.

• Continued Performance: Reinforces Q3 2025 results-Avant's eighth consecutive quarter of positive Adjusted EBITDA¹, driven by 13% gross revenue growth to $10.8 million² and a 68% increase in gross profit to $1.7 million².

• Recognized Growth: Named one of The Globe and Mail's Top Growing Companies for the third consecutive year, ranking 138th with 263% three-year revenue growth³.

¹ Adjusted EBITDA is a non-GAAP performance measure. See the Company's Q3 2025 MD&A available on SEDAR+ at www.sedarplus.ca.

² As reported in the Q3 2025 financial results.

³ As announced by The Globe and Mail on September 29, 2025.

Norton Singhavon, Founder and CEO of Avant Stated:

"In 2023, we made bold investments at scale-acquiring 3PL and Flowr in parallel, to establish a platform capable of supporting sustained growth. We are pleased to have retired every dollar of this acquisition-related debt. This significant milestone, alongside the $4 million in total debt reduction achieved during Fiscal Year 2025, is a result of the Company's execution, discipline, and long-term commitment to shareholder value. Our balance sheet is significantly stronger, our core assets are unencumbered, and we are well-positioned for the next phase of profitable growth."

This repayment marks the fifth loan the Company has fully retired in its history, bringing total debt repaid to more than $21 million. This record demonstrates Avant's ability to service debt, meet its obligations, and consistently deliver on its commitments while continuing to strengthen its balance sheet.

The A&R Debenture was originally issued in connection with the 2023 acquisition of 3PL Ventures Inc., which-together with the parallel purchase of Flowr Okanagan-expanded Avant's indoor production footprint by approximately 60% to more than 185,000 sq. ft. These acquisitions have positioned Avant as one of Canada's largest indoor cannabis producers and have supported material growth across both domestic and export channels.

Focus on Next Phase of Growth

With the A&R Debenture fully repaid, Avant plans to leverage its improved balance sheet to:

• Expand international distribution in high-growth export markets;

• Advance high-margin product categories domestically;

• Maintain strict cost discipline to maximize operating leverage and free cash flow.

The Company remains committed to driving sustainable, cash-flow-positive growth and enhancing long-term shareholder returns.

About Avant Brands Inc.

Avant Brands Inc. (TSX:AVNT)(OTCQX:AVTBF)(FRA:1BU0) is a leading innovator in premium cannabis products, driven by a commitment to exceptional quality and craftsmanship. As one of Canada's largest indoor producers, the company operates multiple production facilities across the country, cultivating unique and high-quality cannabis strains.

Avant offers a diverse product portfolio catering to recreational, medical, and export markets. Its renowned consumer brands, including blk mkt™, Tenzo™, Cognōscente™, flowr™, and Treehugger™, are available in key recreational markets across Canada. The company's international footprint spans Australia, Israel, and Germany, with its flagship brand blk mkt™ leading the way. Avant also serves qualified medical patients nationwide through its GreenTec™ medical cannabis brand, accessible via the GreenTec Medical portal and trusted partner network.

Avant is a publicly traded company, listed on the Toronto Stock Exchange (TSX) and accessible to international investors through the OTCQX Best Market (OTCQX) and Frankfurt Stock Exchange (FRA). Headquartered in Kelowna, British Columbia, the company operates in strategic locations throughout Canada.

Learn More:

For more information about Avant, including investor presentations and details about its consumer brands, please visit the company website: www.avantbrands.ca

Investor Relations:

For inquiries, please contact:

Avant Brands Investor Relations
1-800-351-6358
ir@avantbrands.ca

Neither TSX Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, which reflects the current expectations, estimates, and projections of Avant Brands Inc. ("Avant" or the "Company") regarding future events, performance, or results. Forward-looking information is often, but not always, identified by words such as "expects," "anticipates," "believes," "intends," "plans," "estimates," "may," "could," "would," "should," and similar expressions.

Forward-looking information in this release includes, but is not limited to, statements concerning: the Company's expectations to leverage its improved balance sheet to expand international distribution in high-growth export markets, advance high-margin product categories domestically and maintain strict cost discipline to maximize operating leverage and free cash flow; driving sustainable, cash-flow-positive growth; and enhancing long-term shareholder returns.

Forward-looking information is based on a number of assumptions that management believes to be reasonable as of the date of this news release, including assumptions regarding general business and economic conditions, the Company's ability to maintain and grow market share, regulatory stability, consumer demand for premium cannabis products, and access to capital and key personnel.

Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or performance to differ materially from those expressed or implied by the forward-looking information. These risks include, among others, changes in general economic, business, and political conditions; regulatory and licensing risks; evolving cannabis regulations and enforcement practices; shifts in consumer preferences; fluctuations in input costs and supply chains; and the risk factors detailed in the Company's Annual Information Form dated February 28, 2025, and other continuous disclosure filings available on the Company's SEDAR+ profile at www.sedarplus.ca.

Readers are cautioned not to place undue reliance on forward-looking information. Avant 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 applicable law.

SOURCE: Avant Brands Inc.

View the original press release on ACCESS Newswire

FAQ

What did Avant Brands (AVTBF) repay on November 2025?

Avant fully repaid the amended and restated convertible debenture with a principal of $9.5M in November 2025.

How does Avant's November 2025 repayment affect shareholder dilution for AVTBF?

The repayment was completed without conversion into common shares, avoiding dilution from this debenture.

How much total debt has Avant repaid through Fiscal Year 2025?

Avant reported approximately $4M repaid in Fiscal 2025 and more than $21M repaid in company history.

What recent cash-flow and profitability metrics did Avant report in 2025?

Avant reported eight consecutive quarters of positive Adjusted EBITDA, YTD operating cash flows up 111% to $3.7M, Q3 2025 revenue of $10.8M and gross profit of $1.7M.

Which operating assets were released from security after the AVTBF debenture repayment?

Key real estate assets named include Grey Bruce Farms and Tumbleweed Farms, now unencumbered.