An anonymous director reports

AVANT BRANDS ANNOUNCES $3.9 MILLION PRIVATE PLACEMENT OF UNSECURED CONVERTIBLE DEBENTURE UNITS

Avant Brands Inc. has outlined the terms of a proposed non-brokered private placement of unsecured convertible debenture units at a price of $1,000 per convertible debenture unit for gross proceeds of up to $3.9-million.

Each convertible debenture unit will comprise: (i) $1,000 principal amount of senior unsecured convertible debentures of the company; and (ii) 10,000 common share purchase warrants of the company. Each convertible debenture will be convertible into common shares of the company, at the option of the holder, at a conversion price of 10 cents per debenture share, subject to adjustment in certain circumstances. Each warrant will entitle the holder thereof to purchase one common share of the company at a price of 10 cents for a period of 48 months from the closing date (as defined herein).

The convertible debentures are expected to bear interest at a rate of 10 per cent per year from the closing date, calculated and payable quarterly in cash. Any remaining accrued and unpaid interest will be paid by the company on the fourth anniversary of the closing date. The company is expected to: (i) repay 6.25 per cent of the principal amount quarterly in cash; and (ii) repay the remaining principal amount outstanding on the maturity date.

It is anticipated that the sole subscriber in the private placement will be a single institutional investor. Pursuant to the terms of the convertible debentures and the warrants, the subscriber will be restricted from converting or exercising the convertible debentures or warrants, as applicable, to the extent that after giving effect to such conversion or exercise, as the case may be, the subscriber would beneficially own or exercise control or direction over, directly or indirectly, in excess of 9.99 per cent of the common shares of the company outstanding immediately after giving effect to such conversion or exercise, as the case may be.

The private placement is expected to close on or about July 19, 2024, and the net proceeds are expected to be used to repay existing indebtedness.

The issuance of the convertible debenture units remains subject to the final approval of the Toronto Stock Exchange.

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 offers a comprehensive product portfolio catering to recreational, medical and export markets. Avant's consumer brands, including BLK MKT, Tenzo, Cognoscente, flowr and Treehugger, are available in key recreational markets across Canada. Avant's products are distributed globally to Australia, Israel and Germany, with its flagship brand, BLK MKT, currently being sold in Israel. Additionally, Avant's medical cannabis brand, GreenTec, serves qualified patients nationwide through its GreenTec Medical portal and trusted medical cannabis partners.

Headquartered in Kelowna, B.C., Avant operates in strategic locations, including British Columbia, Alberta and Ontario.

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