Mr. Norton Singhavon reports

AVANT BRANDS REPORTS RECORD Q1 NET REVENUE AND OUTPERFORMS REVENUE GUIDANCE

Avant Brands Inc. has released its financial results for the first quarter ended Feb. 29, 2024. Driven by a continued focus on strategic international expansion and operational improvements, the Company achieved significant financial milestones.

In Q1 2024, Avant Brands reports records across key financial metrics, underscoring the Company's commitment to operational excellence. These highlights include:

Record Net Revenues: Increased 15% to $8.1 million compared to Q1 2023, demonstrating sustained growth as the Company continues to experience significant demand internationally.

International Sales Surge: International sales increased to a record of $3.3 million, representing a 21% increase over Q1 2023, reflecting the success of Avant's premium flower in global markets, with sales accounting for 37% of total gross revenue. This was driven by Avant's aggressive market penetration in key regions such as Australia, Germany and Israel.

Significant Margin Improvement: Increasing production output resulted in record kilograms ("KG") produced, resulting in lower production costs per gram and significantly increased Gross Margin3.

Enhanced Profitability: Achieved a record Adjusted EBITDA2 of $3.8 million, marking a substantial 120% increase.

Cash Flow from Operations1: Increased to $3.8 million.

Sustained Results: Adjusted EBITDA2 was positive for six of the past seven quarters, with seven consecutive quarters of positive Cash Flow from Operations1.Adjusted Net Income6: Achieved a record of $1.2 million, demonstrating significant improvement attributed to effective cost-control measures and increased sales, further bolstering the Company's profitability.

Avant Brands Founder & CEO Norton Singhavon Comments:

"Despite facing short-term challenges in late 2023, Avant Brands is pleased to report record-breaking Q1 2024 results across all key metrics. This achievement signifies a successful return to our growth trajectory. Our team's unwavering commitment to production increases, sales growth, and cost reduction has played a pivotal role in driving this turnaround. We are confident that by staying relentless in adhering to these core principles, we will achieve continued growth as we execute our global expansion strategy."

Fiscal Q1 2024 Financial Highlights (vs. Fiscal Q1 2023):

Record Revenue Growth:

Gross Revenue: $8.9 million

Net Revenue: Record of $8.1 million (+15%)

International Revenue: Record $3.3 million (+21%)Canadian Recreational Revenue: $3.4 million (-19%)

Domestic B2B Revenue: $1.3 million (vs. $0.06 million)

Record Gross Margin3 (before fair value adjustments):

Gross Margin3 dollars: Record of $4.7 million (+61%)

Gross Margin3 percentage: Increased to 58% (vs. 42%)

Canadian Recreational Gross Margin3: Record of 63% (vs. 47%)

Export Gross Margin3: Record of 74% (vs. 31%)

Record Production and Sales:

Cannabis Production: Record of 3,231 KG (+23%), with five consecutive quarters of record productionCannabis Sales: Record 2,785 KG sold (+96%)

Average Selling Prices Across Key Channels:

International Selling Price (on-spec product): $4.30 per gram

Recreational Cannabis Selling Price (net of excise): $5.49 per gram (vs. $6.00)

Weighted Average Selling Price: Decreased to $3.18 per gram (vs. $5.08)

The decrease in the weighted average selling price was due to liquidating off-spec inventory through domestic wholesale channels. Recreational cannabis prices declined with the Flowr brand relaunch, which has a lower price point than BLK MKTTM and TenzoTM. Notably, Avant's international sales and recreational brands maintained their pricing integrity, demonstrating resilience against pricing pressures.

Optimizing Cash Flows:

Cash Flow from Operations1: Increased to $3.8 million (+114%), achieving seven consecutive quarters of positive Cash Flow from Operations1

Operational Efficiency:

SG&A and Corporate Expenses5: Decreased to $2.5 million (-14%)

Record Trends in Profitability Metrics:

Adjusted EBITDA2: Record of $3.8 million (+120%)

Adjusted EBITDA Margin2 of Net Revenue: Record of 47% (vs. 24%)

Adjusted Net Income6: Record of $1.2 million (+403%)

Avant Brands CFO, Jeremy Wright Comments:

"I'm thrilled by Avant Brands' outstanding Q1 2024 performance. I'm impressed by the efforts of our sales and operations teams, which are driving record-breaking results. Our strong financial performance, including record net revenue and substantial growth in cash flow from operations, reflects the effectiveness of our strategies. With continued focus, we'll sustain this momentum and drive further growth. It's an exciting time to be back with the team."

Fiscal Q1 2024 Corporate Highlights

Rapidly Growing International Demand: Avant's aggressive pursuit of international growth led to the establishment of partnerships with five new entities across Australia, Germany, and Israel, tapping into a combined population exceeding 120 million. Notably, the Company maintains a flawless track record, achieving 100% collection on all international sales and brand licensing revenue.

Enhancing Financial Flexibility: Avant prioritized financial flexibility by restructuring loan agreements, aiming to bolster its ability to navigate dynamic market conditions. This provides Avant with the flexibility to manage its strong cash flow from operations and prioritize initiatives to increase sales in Canada and internationally.

Key Subsequent Events

Cultivar Expansion: Avant Brands broadens its cultivar offerings to meet rising global demand.

Strategic Team Growth: Avant strengthens its leadership with Sukhie Chahal, VP of Revenue Strategy (previously at Canopy Growth), and Tyson Macdonald - Board of Directors (previously at Acreage Holdings).

International Brand Recognition: Avant partners with IM Cannabis to launch BLK MKTTM in Germany, tapping into the recently announced recreational legalization. This positions BLK MKTTM to become a prominent player in what is anticipated to be the largest recreational cannabis market globally.

Avant Brands Strategic Priorities for Fiscal 2024

1. Market Expansion and International Growth

Avant Brands recognizes the immense potential of international cannabis markets. Leveraging our brand reputation and quality recognition, the Company will prioritize the following strategic initiatives for the remainder of fiscal 2024:Target High-Potential Markets: From Germany's recent legalization (serving a population of 84 million) to emerging markets, Avant will strategically expand its global reach.

Secure Additional Clients: As one of Canada's largest indoor producers, the Company is well-positioned to continue expanding its international sales and actively seek partnerships in the UK, Switzerland, and other emerging markets.

2. BLK MKTTM: Building a Global Icon

The Company's flagship brand, BLK MKTTM, is well-positioned for global recognition. Key initiatives to support this include:Strategic Licensing Partnerships: With a priority to expand BLK MKTTM beyond Israel and Germany, the Company is in active discussions to launch the BLK MKTTM brand in Australia, solidifying its status as a premium cannabis icon.

3. Revenue Growth and Strong Partnerships

Avant Brands remains committed to strong international partnerships:

Successful Deliveries: Initial shipments to a new international client are complete, reinforcing our commitment to reliability.

Repeat Business: Avant anticipates continued shipments as we continue building trust and reliability amongst new and existing clients.

4. Driving Efficiency and Quality for Sustainable Growth

Efficiency and quality are the cornerstones of Avant's operations. This commitment is evident in our recent achievements:Increased Production & Reduced Costs: Avant expanded its production capacity by 50% through the Flowr acquisition while simultaneously achieving a 14% reduction in SG&A and corporate overhead. This demonstrates effective cost-control strategies that support sustainable growth.Quality at Scale: As we scale our global footprint, maintaining the highest quality standards remains paramount.

5. Driving Canadian Recreational Sales:

Avant Brands is committed to capturing a significant share of the Canadian recreational cannabis market. We will achieve this through:

Brand Building & Marketing: Implementing strategic marketing campaigns and activations to elevate brand awareness and recognition among Canadian consumers.

Product Diversification: Optimizing our product portfolio to cater to diverse and evolving trends and market segments.

Distribution Network Optimization: Strengthening our relationships with provincial cannabis boards and key retailers to ensure wider product availability across Canada.

6. Innovation and Consumer Trends

Staying ahead of the curve: Avant Brands will introduce exciting new cultivars, keeping ahead of evolving consumer trends.

Download the Company's Updated Corporate Presentation:

https://avantbrands.ca/investor/#presentation

Fiscal Q1 2024 Earnings Conference Call Details

A conference call with management will be held on Tuesday, April 16th, 2024, at 1 PM PT (4 PM ET) to discuss Avant's 2024 Q1 earnings.

Conference Call Dial Details:

Canada/USA TF: +1-800-319-4610

International Toll: +1-604-638-5340

Callers are encouraged to dial in 5 minutes in advance to ensure a timely connection to the call.

A transcript of the call will be posted on the Company's website at www.avantbrands.ca within 48 hours of the call.

For those seeking a deeper understanding of the Company's financial performance, the financial statements for the quarter ended February 29, 2024 (the "Financial Statements"), along with the related management discussion & analysis (the "MD&A"), will be available for download on the Company's SEDAR+ profile at www.sedarplus.ca or directly from the Company's website.

Your participation is valued as we discuss our achievements, strategies, and vision for the future during this insightful conference call.

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. Our renowned consumer brands, including BLK MKT(TM), Tenzo(TM), Cognoscente(TM), flowr(TM) and Treehugger(TM), 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(TM) currently being sold in Israel. Additionally, Avant's medical cannabis brand, GreenTec(TM), 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 accessible to international investors through the OTCQX Best Market (OTCQX:AVTBF) and Frankfurt Stock Exchange (FRA: 1BU0). Headquartered in Kelowna, British Columbia, Avant operates in strategic locations, including British Columbia, Alberta, and Ontario.

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