Avant Brands repays $9.5-million convertible debenture

Executive Summary

• Avant Brands Inc. has fully repaid its $9.5-million amended and restated (A&R) convertible debenture, which was originally issued for the 2023 acquisition of 3PL Ventures Inc.
• The repayment eliminates the company's largest monthly recurring debt obligation, strengthens the balance sheet, and unencumbers key real estate assets, including Grey Bruce Farms and Tumbleweed Farms.
• The debt retirement coincides with strong operational performance, including eight consecutive quarters of positive adjusted EBITDA, a 111% year-over-year increase in operating cash flows to $3.7 million, and 13% gross revenue growth in Q3 2025.

Key Details

• Debt Extinguishment: Full principal amount of the $9.5-million A&R convertible debenture was retired in November 2025.
• No Conversion: The repayment was completed without any conversion into common shares.
• Debt Reduction Context: This marks the fifth loan fully retired in the company's history, bringing total debt repaid to more than $21 million. Approximately $4 million in total debt was repaid during fiscal year 2025.
• Asset Unencumbrance: Key real estate assets, specifically Grey Bruce Farms and Tumbleweed Farms, are now unencumbered following the release of security.
• Payment History: The company completed 32 consecutive payments since the note's initial issuance in February 2023.
• Q3 2025 Financial Performance:
  • Gross revenue increased by 13% to $10.8 million.
  • Gross profit increased by 68% to $1.7 million.
  • The company reported its eighth consecutive quarter of positive adjusted EBITDA.
  • Year-to-date cash flows from operating activities increased by 111% year-over-year to $3.7 million.
• Growth Recognition: Named one of The Globe and Mail's top growing companies for the third consecutive year, ranking 138th with 263% three-year revenue growth.
• Strategic Expansion: The 2023 acquisition of 3PL Ventures (along with Flowr Okanagan) expanded Avant's indoor production footprint by approximately 60% to more than 185,000 square feet, positioning the company as one of Canada's largest indoor cannabis producers.
• Future Plans: Avant plans to leverage the improved balance sheet to expand international distribution in high-growth export markets, advance high-margin product categories domestically, and maintain strict cost discipline.

Notable Quotes

• "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." — Norton Singhavon, Founder and CEO