Avant Manufacturers publicizes outcomes for the second quarter of fiscal 2021

Record gross sales of. reached $ 2.9 million – corresponds to a growth of 30% compared to the previous quarter
Increased average sales price by 12% compared to the previous quarter $ 7.21
Improved adjusted EBITDA on a nominal loss of $ 28,000
Maintaining a strong capital position with approx. $ 17.6 million Cash and no debt

KELOWNA, BC, July 13, 2021 / CNW / – Avant Brands Inc (TSX: AVNT) (OTCQX: AVTBF) (FRA: 1BUP) ("Avant" or the "Company"), a leading Canadian manufacturer of handcrafted, high quality cannabis products, is pleased to announce that It announced its financial results for the second quarter ("Q2") of its fiscal year 2021.

Avant Brands Inc. logo (CNW Group / Avant Brands Inc.)

Financial highlights of the second quarter of 2021
(for the expired period May 31, 2021)
All figures are compared to the company's last fiscal quarter (Q1 2021).

Record gross sales of $ 2.9 million, compared to $ 2.2 million, An increase from $ 675,000 or 30%
394 kilograms ("KG") of cannabis sold compared to 342 kilograms, a 15% increase
Gross margin (A) decreased from 41% to 39%
Gross margin (A) dollars from $ 961,000 (excluding excise tax), compared to $ 811,000, An increase from $ 150,000 or 18%,
Recreational cannabis sales accounted for 92% of total sales compared to 82%
Total weighted average sales price by 12% or. gone up $ 0.80 to $ 7.21
The weighted average sales price for leisure activities decreased by 1% to $ 7.37 per gram
Operating costs (B) of $ 1.2 million, compared to $ 1.0 million, An increase from $ 200,000 or 20%
Net loss from operating $ 124,000 compared to net income from operations of $ 368,000, a decrease of $ 492,000 or 134% as the company had higher fees related to its financing and TSX close initiatives
Adjusted EBITDA (C) loss of $ 28,000 versus a loss of $ 199,000, an improvement of $ 171,000, or 86%
Maintained a strong capital position with approximately $ 17.6 million in cash and fully deleveraged

"Our Q2 results are the result of our relentless focus on building a long-term, sustainable competitive advantage in the industry. While this was a record quarter, we still see tremendous growth opportunities as we keep our manufacturing, publicly traded SKUs, and waiting for 3PL receives his Health Canada licenses. " said Norton Singhavon, founder and CEO of Avant Brands. "We are excited to begin our journey on the Toronto Stock Exchange with a strong capital position as Avant, a leading innovative brand company, as we continue to execute our strategy of manufacturing market-leading products."

The story goes on

Important company highlights of the second quarter of 2021

Enter into a public offer (the "Offer") of Shares for gross proceeds of $ 23,000,000, Issuing 28,750,000 units at a price of $ 0.80 per unit. The offering was jointly led by Desjardins Capital Markets and Eight Capital as co-lead underwriters and joint book runner.
The two Senior Secured Promissory Notes (the "Note") with NFS Leasing Canada Ltd. repaid in full. The bonds with an aggregate capital balance of approx $ 6 million, were repaid in full on April 9, 2021. As a result, the company is now debt free, all security interests have been met, and the company's assets are completely unencumbered.
Entered into an agreement with Focus Medical Herbs Ltd., an Israeli medical cannabis company. Under the terms of this agreement, the company's first batches of cannabis will be produced by Gray Bruce, with expectations of exporting 500 to 1,000 kg per year. The first order is expected to be shipped at the end of the third quarter or beginning of the fourth quarter of 2021.

Important sales and market highlights of the second quarter of 2021

BLK MKT ™ continues to be one of the best-selling premium items in all provinces
BLK MKT ™ pre-rolls quickly became the best-selling premium 1 gram pre-rolls in BC and Ontario. 2nd place in BC and 3 in Ontario (D)
BLK MKT ™ – Macflurry, an exclusive Avant strain, launched with overwhelming success, including fast sales and exceptional reviews.
BLK MKT ™ saw a 38% year-over-year increase in sales of 3.5G products in BC, Germany
Increased market penetration in Ontario from 30 to 60% during the quarter (E)
Entering a contract manufacturing agreement whereby a leading concentrate company will manufacture Tenzo ™ branded vape cartridges for sale in the Canadian recreational market
Start of packaging and sales of Habitat ™ brand cannabis flowers under an agreement previously made with Habitat Craft Cannabis Ltd.
Continuous increase in medical (B2C) customers with simultaneous expansion of the product range in terms of types and packaging formats

Important follow-up events in the second quarter of 2021

Three months ended	Q2 2021	Q1 2021	Q1 & # 39; 21-Q2 & # 39; 21 % Change	2nd quarter 2020	Q2 & # 39; 20-Q2 & # 39; 21 % Change

Total gross sales	$ 2,904	$ 2,229	30%	$ 1,507	93%
Total net sales	2,458	1,970	25%	1,246	97%
Leisure sales	2,390	1,570	52%	1,063	125%
B2B wholesale	67	400	-83%	183	-63%
Gross Margin (A) (S)	961	811	18%	873	10%
Gross Margin (A) (%)	39%	41%	-5%	70%	-44%
SG&A	1,453	1,370	6%	1,724	-16%
Net Income (Loss) from Ops	-124	368	-134%	-197	37%
Adjusted EBITDA	-28	-199	86%	-406	93%
Adjusted EBITDA margin	-1%	-9%	89%	-27%	96%
Sale (KG) – flower	394	342	fifteen%	183	115%
Average total sales price	$ 7.21	$ 6.41	12%	$ 7.83	-8th%

telephone conference

Management will host a conference call to discuss the financial results July 14, 2021, at the 5:00 p.m. Eastern Time / 14:00 Pacific time.

Dial-in information

Date: July 14, 2021
Time: 5:00 p.m. Eastern Time / 14:00 Pacific time
Canada/United States TF: 1-800-319-4610
International toll: + 1-604-638-5340

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

A copy of the Management Discussion & Analysis and Financial Statements for Q2 2021 can be downloaded from the company's SEDAR profile or from its website at www.avantbrands.ca.

Note (A) Gross margin before fair value adjustments. Definitions and a reconciliation to IFRS can be found in the annual financial statements for the second quarter of 2021 and in the company's MD&A.

Note (B) Operating expenses exclude non-cash items such as depreciation and amortization and share-based payments. Definitions and a reconciliation to IFRS can be found in the annual financial statements for the second quarter of 2021 and in the company's MD&A.

Note (C) Adjusted EBITDA is a non-IFRS measure and the entity calculates Adjusted EBITDA from continuing operations as net income (loss) before interest, income taxes, depreciation and amortization, unrealized gain (loss) from changes in fair value of biological assets, equity losses from investments in associates, loss from the sale of assets, investment losses and share-based payments. Management has determined that the exclusion of the fair value adjustment is an alternative representation of performance. The adjustment of the fair value is a non-cash gain (loss) and is based on the fair value less costs to sell. The most directly comparable metric to Adjusted EBITDA (excluding fair value adjustment of biological assets and inventories) calculated under IFRS is net income (loss) from continuing operations. For definitions and a reconciliation of Adjusted EBITDA to Net Income (Loss) from Continuing Operations, see the company's MD&A for Q2 2021.

Note (D) According to headset data

Note (E) According to OCS data

About avant brands

Avant is an innovative and industry leading manufacturer of high quality, handcrafted cannabis products. Avant has several licensed and operational manufacturing facilities Canada, who make Avant's coveted consumer brands, which are used across medical and recreational channels in. sold Canada.

Avant's recreational brand portfolio includes BLK MKT ™, Tenzo ™, Cogniscente ™, Treehugger ™ and Pristine ™ Seeds, which are made and sold from rare and exceptional strains British Columbia, Ontario, Saskatchewan, Manitoba and Yukon. Avant's medical cannabis brand, GreenTec ™, is sold directly to qualified patients nationwide through its online portal and licensed partners.

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

To learn more about Avant, to access the investor presentation or to learn more about our consumer brands, please visit www.avantbrands.ca.

CAUTION REGARDING FORWARD-LOOKING INFORMATION:

This press release contains certain "forward-looking information" as defined in applicable Canadian securities laws, including statements regarding the Company's plans, intentions, beliefs and current expectations for future business and results of operations. Forward-looking information is often expressed with the words "can", "would", "could", "should", "will", "intend", "plan", "foresee", "believe", "estimate", "expect" or similar expressions and contains information on: the estimated time for the first delivery to Focus Medical Herbs Ltd; the time of the call for prizes; the availability of the transcript of the query on the company's website; and expectations for other economic, business, and / or competitive factors. Forward-looking information is necessarily based on a number of estimates and assumptions that, while believed reasonable, are subject to known and unknown risks, uncertainties and other factors that could cause actual results and future events to differ materially from those expressed or implied through such forward-looking information. Examples of this are statements that the company will operate in a tax-disciplined manner, build long-term shareholder value, reduce operating expenses, or increase its income and gross margins.

Investors are cautioned that forward-looking information is not based on historical facts but instead reflects management's expectations, estimates or projections with respect to future results or events based on management's opinions, assumptions and estimates at the time of publication of the statements were deemed appropriate. Although the company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties and one should not place undue reliance on such information because unknown or unforeseen factors could have a material adverse effect Might have future results and performance, or Company performance. Key factors that could cause actual results to differ materially from those projected in the forward-looking information include: regulatory and licensing risks; Changes in consumer demand and preferences; Changes in general economic, business and political conditions, including changes in financial markets; the global regulatory landscape and enforcement regarding cannabis, including political risks and risks related to regulatory changes; Compliance with comprehensive government regulations; public opinion and perception of the cannabis industry; the effects of COVID-19; and the risk factors identified in the company's annual information form dated March 16, 2021, filed with the Canadian Securities and Exchange Commission and available on the company's profile on SEDAR at www.sedar.com.

Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking information prove to be incorrect, actual results may differ materially from the intended, planned, expected, assumed, estimated or expected results described herein. While the company has tried to identify important risks, uncertainties, and factors that could cause actual results to differ materially, there are others that cause results not to be as expected, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information, which speak only as of the date of this press 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 for any other reason, except as required by law.

This press release relates to certain financial performance measures that are not defined by the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and have no standardized meanings. These non-IFRS financial measures are defined in the MD&A. Non-IFRS financial measures are used by management to assess the company's financial and operational performance. The company believes that these non-IFRS financial metrics, in addition to traditional IFRS metrics, allow investors to evaluate the company's results of operations, underlying performance and prospects in a manner similar to that of the company's management. Because there are no standardized methods for calculating these non-IFRS measures, the Company's approaches may differ from those of other companies and, accordingly, the application of these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide additional information and should not be viewed in isolation or as a substitute for performance measures prepared in accordance with IFRS.

SOURCE Avant Brands Inc.