Canadian producer Avant Brands Inc. (TSX: AVNT) (OTCQX: AVTBF) announced Monday its plan to raise up to 3.9 million Canadian dollars (US$2.9 million) through a non-brokered private placement.
The Kelowna-based company said it will issue up to 45.8 million units at C$0.085 per unit. Each unit will consist of one common share and one common share purchase warrant, with each warrant entitling the holder to acquire an additional share at C$0.12 for a period of 36 months following the closing date, according to a news release.
The proceeds from the offering will be primarily used for general working capital purposes. Avant expects to receive a lead order of C$600,000 from an existing strategic investor.
The offering, which is expected to close on or about April 30, is subject to regulatory approvals, including that of the Toronto Stock Exchange.
Avant operates multiple production facilities across Canada. The company’s consumer brands, such as BLK MKT, Tenzo, and Cognōscente, are available in key recreational markets across Canada, with its flagship brand BLK MKT currently being sold in Israel.
Avant’s growth
Avant published strong fiscal year 2023 results at the end of February, in which it reported gross revenue of CA$30.2 million, a 33% increase from the previous year. The company also saw significant growth in operational cash flow, which rose 256% to CA$5.4 million, and adjusted EBITDA, which climbed 132% to CA$4.4 million.
CEO Norton Singhavon at the time attributed the acquisition of the Flowr Group Okanagan as a key driver, saying that it contributed to “bolstering our expansion efforts and strengthening our position at a global scale.”
Avant also recently announced an international trademark licensing agreement with IM Cannabis Corp. (NASDAQ: IMCC), granting IMC’s German subsidiary, Adjupharm GmbH, the exclusive right to launch Avant’s flagship BLK MKT brand in the German medical cannabis market. This collaboration aims to capitalize on the growing market opportunity in Germany following the country’s recent loosening of medical cannabis restrictions.
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