Mr. Norton Singhavon reports

AVANT BRANDS ANNOUNCES RESULTS FOR Q3 2024

Avant Brands Inc. today released its financial results for the third quarter ended Aug. 31, 2024 (Q3 2024). The company achieved significant financial milestones driven by strategic international expansion and operational improvements.

• Record gross and net revenue: generated $9.6-million gross revenue and $8.5-million net revenue in Q3 2024, establishing new company records;
• Record export wholesale revenue: generated $5.1-million in Q3 2024 representing a 116-per-cent increase over Q3 2023, establishing a new company record;
• Record cannabis production: 3,441 kilograms produced in Q3 2024, representing a 5-per-cent increase over Q3 2023, establishing a new company record;
• Record cannabis sold: 3,087 kilograms sold in Q3 2024, representing a 98-per-cent increase over Q3 2023, establishing a new company record.

In Q3 2024, Avant Brands reports records across key financial metrics, underscoring the company's commitment to operational excellence. These highlights include:

• Record revenues: Gross revenue increased by 27 per cent to a record $9.6-million compared with Q3 2023, while net revenue rose by 30 per cent to a record $8.5-million, demonstrating sustained growth driven by robust international demand.
• Record export wholesale revenue: Export wholesale revenue reached a record $5.1-million in Q3 2024, representing a 116-per-cent increase over Q3 2023. This reflects the strong demand for Avant's premium flower in global markets, with export wholesale revenue accounting for 60 per cent of net revenue, driven by aggressive market expansion in Australia, Germany and Israel.
• Improved profitability: Gross profit decreased for Q3 2024 to $1.0-million from $5.0-million in Q3 2023, largely driven by impacts to biological asset valuations offset by increased revenues and decreased costs of sales. Achieved adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $2.1-million, marking the third consecutive quarter of adjusted EBITDA greater than $2-million, demonstrating improved profitability.
• Improved cash balance: The company's cash balance increased by $2.4-million year to date (YTD) in Q3 2024 compared with a reduction of $5.1-million in Q3 2023 YTD. Net cash flows generated from operating activities reached $1.7-million YTD. Cash flows from operating activities before working capital changes reached $8.8-million in Q3 2024 YTD compared with $4.2-million in Q3 2023 YTD.
• Adjusted net income: Achieved $500,000 adjusted net income, marking the third consecutive quarter of positive adjusted net income.

Avant Brands founder and chief executive officer Norton Singhavon comments:

"Avant Brands is rapidly establishing itself as a leader in the global cannabis market. Our strong international sales growth, coupled with new licensing agreements and partnerships, positions us for continued success as we bring our premium brands, like blk mkt, to consumers around the world."

Fiscal Q3 2024 financial highlights (versus fiscal Q3 2023):

Revenue:

• Gross revenue: record of $9.6-million (plus 27 per cent);
• Net revenue: record of $8.5-million (plus 30 per cent);
• Export wholesale revenue: record $5.1-million (plus 116 per cent);
• Recreational revenue: decreased to $2.8-million (negative 30 per cent);
• Domestic wholesale revenue: increased to $600,000 (plus 866 per cent).

Avant's recreational revenue decreased as the company streamlined its product offerings, prioritizing high-performing and profitable core items. This strategic shift coincided with an increased focus on international expansion.

Gross margin adjusted for fair value adjustments:

• Gross margin adjusted for fair value adjustments: $4.2-million (plus 106 per cent);
• Gross margin per cent adjusted for fair value adjustments: increased to 49 per cent (versus 31 per cent).

           Cannabis production and sales

Cannabis production:            3,441 kg (plus 5 per cent)
Cannabis sales:           3,087 kg sold (plus 98 per cent)

Commercial highlights:

• Growth in key markets: Continuing sales growth in Australia, Israel and Germany, driven by export shipments of Avant's new cultivar portfolio.

Key subsequent events:

• Successful first shipment to major new client: Completed the first shipment to a significant new client in Portugal, further strengthening Avant's presence in the global cannabis market.
• Expanding global footprint: Executed a blk mkt licensing agreement for Australia, paving the way for future expansion into this key market. This partnership expands Avant's international presence, with blk mkt now licensed in Australia, Germany, Israel and Switzerland.

Fiscal 2024 outlook

Avant's international sales continue to surpass domestic adult-use sales in Q3 2024. This achievement highlights the growing global demand for premium cannabis and Avant's strategic positioning to capitalize on this opportunity.

Management is confident in the continued expansion of Avant's international footprint. The company has executed a total of nine international agreements fiscal year to date, with products already shipped to four clients and a further three clients having shipments pending. These new clients represent near-term growth potential spanning key territories such as Australia, Germany, Israel and Portugal, along with new opportunities developing in the Czech Republic, Poland, Switzerland and the United Kingdom. These markets, with a combined population exceeding 250 million, present a substantial growth opportunity for Avant.

This expanded network positions Avant to become a leading player in the global premium cannabis market, with its flagship brand blk mkt well positioned for international success.

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, Cognscente, 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.

Avant is a publicly traded corporation listed on the Toronto Stock Exchange (TSX: AVNT) and is accessible to international investors through the OTCQX Best Market (OTCQX: AVTBF) and Frankfurt Stock Exchange (FRA: 1BU0). Headquartered in Kelowna, B.C., Avant operates in strategic locations, including British Columbia, Alberta and Ontario.

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