Mr. Norton Singhavon reports

AVANT RESTRUCTURES LOAN AGREEMENTS TO EXTEND TERM AND DECREASE PAYMENTS

Avant Brands Inc. has entered into amendments with respect to certain outstanding debts of the company as further described below.

Norton Singhavon, founder and chief executive officer of Avant, commented: "These amendments enable Avant to reinvest our strong cash flow from operations into near-term strategic objectives. We are very grateful to our partners, the F-20 and MENA teams, as the amendments demonstrate their continued support and confidence in Avant's overall strategy for long-term success. On behalf of the company and our shareholders, I would like to personally thank the MENA and F-20 teams for working collaboratively with Avant improving the company's financial stability in a transformative year."

MENA extension

Avant has entered into a promissory note extension agreement with MENA Investment Network Inc. pursuant to which certain amendments were made to the terms of the original promissory note dated July 31, 2023. The extension agreement benefits the company as the note's $720,000 balance, originally due on the note's due date, will now be paid through monthly instalments until the amended maturity date of July 12, 2024. The note bears interest at a rate of 12 per cent percent per annum.

Subject to final approval of the TSX, as consideration for entering into the extension agreement, Avant (i) issued 672,897 common shares of the company to MENA; and, subject to certain conditions, will additionally (ii) issue such number of common shares of the company on July 12, 2024, equal to $50,000 divided by the five-day volume-weighted average price (VWAP) of the common shares of the company on the Toronto Stock Exchange.

F-20 amendment

Avant has entered into a partial equity conversion agreement with F-20 Developments Corp. reducing Avant's quarterly payments to F-20 by more than $1.25-million. Additionally, Avant and F-20 have executed an amended and restated convertible debenture, replacing in its entirety the debenture dated Feb. 1, 2023.

Subject to final approval of the TSX, and in accordance with the equity conversion agreement, Avant has made a voluntary prepayment to F-20 against the principal balance of $4.75-million in the amount of $1.4-million through the issuance of 16,355,140 common shares of the company. Additionally, Avant issued 1,375,000 common share purchase warrants to acquire common shares of the company at an exercise price of 25 cents on or before Feb. 23, 2026, subject to acceleration by the company in the event that the 20-day VWAP of the common shares on the TSX exceeds 85 cents.

Terms of the A&R debenture include a maturity date extension to Oct. 29, 2025; monthly amortized payments of approximately $150,000; and the amended note shall bear an interest rate of 15 per cent per annum.

Early warning

Immediately prior to entering into the A&R Debenture, F-20 held 17,147,216 common shares of the company, representing 6.56 per cent of the issued and outstanding common shares of the company, and 5,375,000 warrants exercisable for 5,375,000 additional common shares of the company. Upon entering into the A&R debenture, F-20 exercises control and direction over 33,426,286 common shares of the company, representing 12.78 per cent of the issued and outstanding common shares of the company and an additional 1,375,000 warrants for a total of 6.75 million warrants exercisable for 5,375,000 additional common shares of the company. The common shares of the company and warrants are being acquired for investment purposes and, as of the date of this news release, F-20 has no current intention to acquire control or direction over additional securities of Avant above 19.99 per cent of the issued and outstanding common shares of the company, either alone or together with any joint actors. An early warning report regarding these transactions will be filed on SEDAR+ under Avant's issuer profile and may be obtained directly from F-20 upon request at 250-215-5028.

All of the common shares of the company issued to MENA and F-20 and the warrants issued to F-20 are subject to a statutory hold period of four months and one day in accordance with applicable securities law.

About Avant Brands Inc.

Avant aims to be 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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