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Avant Brands Reports Record Revenues for H1 2022

Jul 13, 2022 • 8:44 PM EDT
10 MIN READ  •  By Michael Berger
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Avant Brands Inc. (TSX:AVNT) (OTCQX:AVTBF) (FRA:1BU0) (“Avant” or the “Company“), a leading producer of premium handcrafted cannabis products, is pleased to announce its financial results for the quarter ended May 31, 2022 (“Q2 2022”).

“Q2 2022 continued Avant’s strong sales momentum established in Q1 2022, which we believe was a result of outstanding product quality, increased production and ongoing growth in both domestic and international markets,” said Norton Singhavon, Founder and CEO of Avant. “Our record first half results provide a strong foundation for future growth as we ramp-up production at our 3PL facility during the remainder of Fiscal 2022.”

Following a successful corporate and financial restructuring in the 2021 fiscal year, Avant has continued to build positive momentum, achieving record gross and net revenues for the six months ended May 31, 2022. As of May 31, 2022, the Company had $8.9 million in cash, $21.0 million in working capital and no long-term debt obligations. As a result, the Company continues to maintain a strong financial position.

Key Financial & Operational Highlights: H1 2022 vs. H1 2021

All figures are compared to the same period in the prior year (H1 2021) unless otherwise stated; all financial information in this press release is reported in Canadian dollars.

  • Sold 1,846 kg of cannabis, generating gross revenues of $9.0 million, an increase of 1,100 kg, or 151% in volume, and $4.0 million, or 77% in gross revenue
  • Total production at the Company’s four facilities increased by 58% to 2,556 kg
  • Recreational cannabis sales accounted for 64% of gross revenue (87% in H1 2021), with the remainder being export, medical and consulting revenues
  • Recreational cannabis revenue per gram declined by 4%, from $7.43 to $7.13 (including excise taxes) over the same period, as the Company continues to withstand significant price compression
  • Continued international export strategy with dried flower exports totalling over 556 kg
  • Experienced an increase of 162% in business-to-consumer medical clients on the Company’s on-line medical portal from May 31, 2021 to May 31, 2022, while significantly diversifying the range of products by adding new cultivars and product formats
  • Launched seven new cultivars under the Company’s recreational cannabis brands in Q2 of this year, with additional products expected to launch over the course of Fiscal 2022. The Company has approximately 80 strains in its genetics library, most of which have not yet been utilized and, to the knowledge of the Company, are generally not currently available in the legal Canadian recreational market
  • As of May 31, 2022, the Company had 1,132 kg of cannabis flower and 798 kg of cannabis trim in inventory. The Company continues to experience significant demand for its products which historically has exceeded its production levels
  • Net loss from operations was $5.5 million, compared to net income from operations of $0.2 million in H1 2021. The changes were primarily due to non-cash items including share-based compensation and depreciation. The Company utilized its RSU plan for the first time since its adoption in 2020, to maximize employee retention (while preserving its cash) as recent accelerated inflation has affected all Canadians.
  • Adjusted EBITDA(1) loss was $0.5 million, compared to adjusted EBITDA loss of $0.2 million in H1 2021. (Refer to “Non-IFRS Financial Measures And Other Measures” below for further details)

Key Financial & Operational Highlights: Q2 2022 vs. Q1 2022

All figures are compared to the Company’s most recent fiscal quarter (Q1 2022) unless otherwise stated

  • Achieved record recreational cannabis sales of $3.1 million, compared to $2.5, an increase of $0.6 million or 23%, demonstrating the growth of Avant’s core business
  • Gross revenues of $4.5 million, from the sale of 961 kg of cannabis, representing a revenue decrease of 3% and a volume increase of 9%
  • Total production increased by 66% to 1,595 kg
  • Successfully continued international expansion with dried flower exports totalling over 176 kg
  • Net loss from operations was $4.5 million, compared to $1.0 million, the variance being driven primarily by non-cash items, including share-based compensation from the RSU grant in Q2 2022
  • Adjusted EBITDA(1) loss of $0.6 million, compared to positive adjusted EBITDA of $0.1 million in Q1 2022.

Other Highlights & Subsequent Events

  • In May 2022, 3PL Ventures Inc. (“3PL”) received a license amendment from Health Canada to facilitate sales to provincial liquor boards.
  • In May 2022, Avant Craft Cannabis (formerly Alberta Craft Cannabis) received a license amendment from Health Canada to facilitate sales of edibles and concentrates to provincial liquor boards.
  • In May 2022, 3PL received ICANN-GAP certification from IQC (Institute for Quality & Control), to facilitate export sales to Israel.
  • In June 2022, 3PL Shareholders executed a revised 3PL Shareholders’ Agreement, increasing Avant’s equity stake in 3PL from 49% to 50%, effective June 1, 2022.
  • In June 2022, the Company executed its first International Trademark Licensing Agreement, with the aim to leverage the success of its brand portfolio, generating incremental revenue.
  • During the course of 2022, the Company has been executing a series of contract grow agreements to help address exceeding demand for its products.

Financial Highlights

H1 2022H1 2021% Change
Excise tax(799)(705)(13%)
Net Revenue8,2714,42887%
Recreational revenue5,6413,91144%
B2B revenue2,276468386%
Medical revenue10249108%
Management fees and other revenue2520N/A
Gross margin before fair value adjustments (1)1,8891,7717%
Gross margin % before fair value adjustments (1)23%40%(43%)
Gross margin1,5453,067(50%)
Operating expenses7,0682,821151%
Other income (expenses)1,184(1,535)177%
Net loss before income tax(4,339)(1,289)(237%)
Adjusted EBITDA (2)(541)(227)(138%)
Kilograms of cannabis flower sold1,846736151%
Kilograms of cannabis produced – 100%-owned facilities1,2511,615(23%)
Kilograms of cannabis produced – including 3PL facility2,5561,61558%
Average recreational gross pricing per gram (3)7.137.43(4%)
Weighted average gross pricing per gram (4)5.116.81(25%)

Note 1 – Gross margin before fair value adjustments is a non-IFRS performance measure. Refer to “Non-IFRS Financial Measures And Other Measures” below for further details. Management determined that the exclusion of the fair value adjustment is an alternative representation of performance. The fair value adjustment is a non-cash gain (loss) and is based on fair market value less cost to sell.

Note 2 – Adjusted EBITDA is a non-IFRS performance measure. Refer to “Non-IFRS Financial Measures And Other Measures” below for further details.

Note 3 – Average recreational gross pricing per gram is a non-IFRS performance measure and is calculated by determining the total recreational sales divided by the total number of recreational grams sold. Refer to “Non-IFRS Financial Measures And Other Measures” below for further details.

Note 4 – Weighted average gross pricing per gram is a non-IFRS performance measure and is calculated by determining the total flower sales divided by the total number of flower grams sold. The primary driver of changes in this metric are shifts in business mix (e.g. between recreational and export sales). Refer to “Non-IFRS Financial Measures And Other Measures” below for further details.

Conference Call

Management will host a conference call to discuss the financial results on July 14, 2022, at 4:00PM Eastern Time / 1:00PM Pacific Time.

Dial-in Information

Canada/USA Toll Free: +1-800-319-4610
International Toll: +1-604-638-5340

A transcript of the call will be posted on the Company’s website at within 48 hours of the call.

A copy of the Management Discussion & Analysis (“MD&A”) and Financial Statements for Q2 2022 can be downloaded from the Company’s SEDAR profile, or on its website at

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’s products are distributed via three complementary sales channels: recreational, medical and export. Avant’s recreational consumer brands include: BLK MKT™, Tenzo™, Cognōscente™ and Treehugger™, which are sold in British Columbia, Saskatchewan, Manitoba, Ontario, Atlantic Canada and the territories. The Company’s medical cannabis brand, GreenTec™, is distributed nationwide, directly to qualified patients through its GreenTec Medical portal and through various medical cannabis partners.

Avant is a publicly traded corporation listed on the Toronto Stock Exchange (TSX: AVNT), and cross-trades on the OTCQX Best Market (OTCQX: AVTBF) and Frankfurt Stock Exchange (FRA: 1BU0). The Company is headquartered in Kelowna, British Columbia and has operations in British Columbia, Alberta and Ontario.

To learn more about Avant, access the investor presentation, or learn more about its consumer brands, please visit

For additional information, please contact:

Investor Relations at Avant Brands Inc.


This news release includes certain “forward-looking information” as defined under applicable Canadian securities legislation, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes information regarding: the Company’s ability to increase production levels at the 3PL facility; the Company’s ability to expand it’s global export client base; the Company’s ability to increase the quantity of cannabis products available for sale; and expectations for other economic, business, and/or competitive factors. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Examples include statements that the Company will operate in a fiscally disciplined manner; preliminary financial results are subject to the completion of the Company’s financial closing procedures and have not been audited or reviewed by the Company’s independent auditor; that the Company will build long-term shareholder value and reduce operational expenses; or that the Company will increase its revenue and gross margins.

Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: regulatory and licensing risks; changes in consumer demand and preferences; changes in general economic, business and political conditions, including changes in the financial markets and inflation-related risks; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; compliance with extensive government regulation; public opinion and perception of the cannabis industry; and the risk factors set out in the Company’s annual information form dated February 28, 2022, filed with Canadian securities regulators and available on the Company’s profile on SEDAR at

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. For instance, there can be no assurance that the Company’s financial results for Q2 2022, including the Company’s revenues or any other preliminary financial results for Q2 2022 will be as projected. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information, which speak only as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.


Certain measures, such as adjusted EBITDA, gross margin, gross Marin % and average recreational gross pricing per gram, in this press release do not have any standardized meaning as prescribed by International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board and may, therefore, but considered non-IFRS financial measures, non-IFRS measures, or other measures and may not be comparable to similar measures presented by other issuers. Non-IFRS financial measures are used by management to assess the financial and operational performance of the Company. The Company believes that these non-IFRS financial measures, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company’s operating results, underlying performance and prospect in a similar manner to the Company’s management. As there are no standardized methods of calculating these non-IFRS measures, the Company’s approach may differ from those used by others, and accordingly, the sue of these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures include:

  • Non-IFRS Measures – gross margin before fair value adjustments; adjusted EBITDA
  • Non-IFRS Ratios – average recreational price per gram; weighted average gross price per gram

Refer to the Company’s MD&A for additional details.

SOURCE: Avant Brands, Inc.

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Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.


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