Mr. Norton Singhavon reports

AVANT BRANDS CLOSES $3.9 MILLION OFFERING OF UNSECURED CONVERTIBLE DEBENTURE UNITS

Avant Brands Inc. has closed its non-brokered private placement in the amount of $3.9-million priced at a price of $1,000 per unsecured convertible debenture unit through the issuance of 3,900 unsecured convertible debenture units. The net proceeds raised from the offering are expected to be used to repay existing indebtedness.

Norton Singhavon, founder and chief executive officer of Avant Brands, commented:

"This investment is a major milestone for Avant Brands, demonstrating the growing recognition of our brand and potential. We are confident that this capital infusion will enable us to further expand our reach into key international markets and accelerate our overall growth trajectory, contributing to the generation of long-term value for our shareholders."

Each convertible debenture unit comprises (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 per warrant share for a period of 48 months from July 26, 2024.

The convertible debentures bear interest at a rate of 10 per cent per annum from the closing date, calculated and payable quarterly in cash, with any remaining accrued and unpaid interest to 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.

Pursuant to the terms of the convertible debentures and the warrants, the holder 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 holder 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.

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.

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