Avant Brands Fully Repays $9.5M Secured Convertible Debenture

Executive Summary

• Avant Brands fully repaid its $9.5 million amended and restated convertible debenture (issued for the 2023 acquisition of 3PL Ventures), eliminating its largest recurring monthly debt obligation.
• The repayment brings total debt retired in FY 2025 to approximately $4 million and cumulative historic repayments to over $21 million, reinforcing liquidity and unencumbering key operating assets.
• The company highlights continued strong operational performance – eighth consecutive quarter of positive Adjusted EBITDA, 13% YoY revenue growth to $10.8 M and a 68% increase in gross profit to $1.7 M.

Key Details

• Debt Fully Extinguished: Principal amount of $9.5 million A&R Debenture retired in November 2025; no conversion into common shares occurred.
• Balance‑Sheet Impact: Largest monthly recurring debt eliminated; key real estate assets (Grey Bruce Farms, Tumbleweed Farms) now unencumbered.
• Debt Reduction Track Record: $4 million of total debt repaid during FY 2025; fifth loan fully retired in company history, cumulative repayments >$21 million.
• Operational Performance: Q3 2025 – Adjusted EBITDA positive for eight straight quarters; revenue $10.8 M (↑13% YoY); gross profit $1.7 M (↑68% YoY).
• Cash Flow: Year‑to‑date operating cash flow up 111% YoY to $3.7 million.
• Strategic Context: Debenture originally issued to finance the 2023 acquisition of 3PL Ventures (and parallel purchase of Flowr), which expanded indoor production capacity by ~60% to >185,000 sq ft.
• Future Growth Plans: Leverage stronger balance sheet to expand international distribution in high‑growth export markets, advance high‑margin domestic product categories, and maintain strict cost discipline to maximize operating leverage and free cash flow.
• Recognition: Named one of The Globe and Mail’s Top Growing Companies (3rd consecutive year, rank 138, 263% three‑year revenue growth).

Notable Quotes

“We are pleased to have retired every dollar of this acquisition‑related debt… 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

All forward‑looking statements are subject to risks and uncertainties detailed in Avant Brands’ Annual Information Form (dated February 28 2025) and other continuous disclosure filings.