Star Metro - Avant Brands Reports Audited Fiscal 2025 Results with 19% Recreational Revenue Growth

KELOWNA, BC / ACCESS Newswire / March 2, 2026 / Avant Brands Inc. (TSX:AVNT)(OTCQX:AVTBF)(FRA:1BU0) ("Avant" or the "Company"), a leading producer of innovative and award-winning cannabis products, today released its financial results for the fiscal year ended November 30, 2025 ("FY 2025").

With an expanding global footprint, Avant has established itself as a leading Canadian producer of ultra-premium cannabis, delivering brands at a commercial volume that continues to be outpaced by market demand.

During FY 2025, the Company accelerated its recreational revenue growth through highly successful SKU introductions under the blk mkt™ and Tenzo™ brands, while cementing its long-term position in key international markets. Avant's strict operational discipline yielded positive Adjusted EBITDA¹ in three of four quarters and generated a significant increase in operating cash flow, driven by strong performance in both net recreational and domestic wholesale channels.

(1) Adjusted EBITDA is a non-GAAP performance measure. The information is incorporated by reference from the Q4 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com

Fiscal 2025 Highlights include:

• Debt Reduction: The Company prioritized strengthening its balance sheet, repaying approximately $4.5 million of debt (including interest) during FY 2025, demonstrating a commitment to disciplined financial management and deleveraging.

• Recreational Revenue Growth: Increased 19% to $14.8 million, driven by the continued momentum of the blk mkt ™ and Tenzo ™ brands alongside successful market capture in the pre-roll category.

• Domestic Wholesale Revenue: Generated $5.3 million in FY 2025, representing a 61% increase over FY 2024. This increase was primarily driven by a strategic supply chain optimization in which key international clients transitioned their EU-GMP processing to a domestic Canadian partner, effectively shifting these sales from export wholesale revenue to domestic wholesale revenue.

• Demand Exceeds Supply: Demand for the Company's premium products continues to exceed production capacity, resulting in the sale of substantially all cannabis produced in the fiscal year.

Norton Singhavon, Founder & CEO of Avant Brands commented:

"Fiscal 2025 marked the moment Avant's operational discipline met its brand potential. We moved aggressively to optimize our cost structure, resulting in a record $5.7 million in operating cash flow and a significant gross profit improvement. Our ability to grow recreational revenue by 19% while the broader industry faced headwinds proves that our 'quality-first' strategy is winning. We've cleaned up the balance sheet, repaid approximately $4.5 million in debt, and fully retired our largest convertible debenture, positioning Avant as a leaner, stronger, and more profitable leader heading into 2026."

International Sales Highlights:

• Record Export Volumes & Market Expansion: During FY 2025, the Company shipped in excess of 5,000 kilograms internationally, with Germany emerging as Avant's largest international market (accounting for more than 3,000 kilograms). The Company successfully onboarded new clients in Australia, Germany, and the United Kingdom, initiating its first UK shipments in November 2025.

• Expanding Global Footprint: Avant currently supplies numerous clients across Australia, Germany, the UK, and Israel with a diversified portfolio of 50+ active SKUs. Anchored by multi-year supply agreements, the company's continued international expansion reinforces Avant's position as the preferred global supplier capable of leveraging unique genetics to meet strict international product specifications.

• Wholesale Channel Optimization: While export wholesale decreased by 20%, this was primarily due to a strategic supply chain optimization by key international clients. To improve logistical efficiency, these clients transitioned their EU-GMP processing to a domestic Canadian EU-GMP partner. Consequently, sales previously categorized as export wholesale revenue were recognized as domestic wholesale revenue, driving a 61% increase in the domestic channel. These orders continue to supply the international market, reflecting sustained and growing global demand for Avant's premium bulk cannabis.

Canadian Recreational Highlights:

The Company continues to experience exceptionally strong demand and market share growth within Canada's largest cannabis market, Ontario. Based on Ontario Cannabis Store (" OCS ") sales data from July 1, 2025, to December 31, 2025 ², the Company achieved the following milestones:

(2) Data sourced from OCS Data and Insights reporting for July 1, 2025, to December 31, 2025.

Fully Repaid $9.5M Secured Convertible Debenture:

The Company fully repaid its $9.5 million amended and restated convertible debenture. This milestone eliminates the Company's largest recurring monthly debt obligation and unencumbers key operating assets, including the Grey Bruce Farms and Tumbleweed Farms facilities. The repayment was primarily funded through cash flows from operations and was completed without the debenture converting into common shares, minimizing shareholder dilution.

Fiscal 2026 Outlook:

Following a year of significant financial and operational milestones, Avant is focused on capitalizing on its current momentum to drive further value in Fiscal 2026 (" FY 2026 "):

• Optimizing International Channels: Expanding the Company's presence in key European markets, growing international brand licensing partnerships, and introducing exclusive new cultivars into international sales channels;

• Increasing Cultivation Output: Driving yield improvements through facility optimization, with tangible results expected in the second half of FY 2026, alongside continued cost reduction initiatives;

• Driving Margin Expansion: Targeting improved gross margin through the full realization of FY 2026 facility upgrades, including current LED and under-canopy lighting installations which are anticipated to increase yield per square foot and reduce cost per gram;

• Strategic Acquisitions: Actively evaluating accretive acquisition opportunities, specifically targeting high-quality cultivation facilities in Canada and European sales and distribution to accelerate production capabilities and expand the Company's international footprint;

• Accelerating Recreational Momentum: Focusing on high-velocity, high-margin products to drive growth in the recreational market, which remains the Company's highest-margin sales channel;

• Cultivation Expansion: Pursuing non-dilutive financing solutions to fund completion of the Phase 1, 20,000 square foot construction, at GreenTec Biopharmaceuticals Corp.;

• Strengthening the Balance Sheet: Continuing to reduce corporate debt, including the targeted full retirement of the Secured Credit Facility (balance of approximately $1.2 million as of FY 2025) during the fiscal year, while maintaining scheduled quarterly principal and interest repayments on the convertible debenture B (balance of approximately $2.7 million as of FY 2025); and

• Enhancing Shareholder Communication: Implementing a proactive investor relations strategy to provide more frequent and transparent updates on business developments and operational milestones between quarterly financial reports.

Q4 2025 Financial Highlights (vs. Q4 2024):

Revenue:

• Gross revenue: $11.2 million (-7%)

• Net revenue: $9.4 million (-15%)

• Recreational revenue: $6.4 million (+114%)

• Export wholesale revenue: $2.5 million (-66%)

• Domestic wholesale revenue: $0.8 million (+59%)

Recreational revenue increased by 114%, driven by an improved focus on top-performing, high-velocity SKUs and the successful launch of new offerings under the blk mkt™ and Tenzo™ brands. The Company continues to optimize its SKU portfolio and channel mix by identifying market white space and scaling products with strong consumer pull, supporting sustainable, long-term revenue growth in the recreational channel.

While Export Wholesale revenue decreased by 66%, this was primarily driven by a strategic supply chain optimization for key international clients. To achieve logistical efficiency, these clients transitioned their EU-GMP processing to a Canadian partner. Consequently, sales were conducted directly with the domestic EU-GMP partner to fulfill these export obligations, effectively shifting revenue recognition from export wholesale revenue to domestic wholesale revenue. This shift was the primary driver of the 59% increase in domestic wholesale revenue.

Gross profit: Gross profit increased to $1.5 million, compared to a gross loss of $1.8 million in Q4 2024. The increase in gross profit was driven by an increase in the unrealized gain on changes in fair value of biological assets.

Adjusted EBITDA¹: Adjusted EBITDA¹ was negative $1.1 million, compared to positive $2.3 million in Q4 2024. The decrease was primarily driven by improved Cost of sales allocations.

(1) Adjusted EBITDA is a non-GAAP performance measure. The information is incorporated by reference from the Q4 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com

Cannabis Production and Sales:

• Cannabis Production: 2,432 KG (-13%).

• Cannabis Sales: 2,876 KG sold (-42%).

In Q4 2025, the Company sold 18% more KGs than it produced. However, Q4 2025 KG production was lower than anticipated due to a one-time equipment failure that was partially offset by a $318k Insurance Recovery. Additionally, the decrease in KGs sold is due to higher aged inventory levels that were sold through in Q4 2024 and therefore did not recur in the current period.

Fiscal Year 2025 Financial Highlights (vs. Fiscal Year 2024):

Revenue:

• Gross Revenue: $41.3 million (+3%)

• Net Revenue: $35.9 million (0%)

• Net Recreational revenue: $14.8 million (+19%)

• Export wholesale revenue: $15.5 million (-20%)

• Domestic wholesale revenue: $5.3 million (+61%)

Cannabis Production and Sales:

• Cannabis Production: 12,316 KG (-3%)

• Cannabis Sales: 12,422 KG sold (-8%)

In FY 2025, substantially all inventory produced was sold. However, the company sold 8% less KGs compared to FY 2024. The year-over-year decline reflects elevated FY 2024 opening inventory that was liquidated, which did not occur in FY 2025.

Board of Directors Update

In conjunction with the Fiscal 2025 year-end results, Avant announces that Duane Lo will be stepping down from the Company's Board of Directors effective March 3, 2026, to pursue other opportunities. Management and the Board would like to extend their sincere gratitude to Mr. Lo for his valuable insights, strategic guidance, and over 4.5 years of dedicated service to Avant, and wish him the best in his future endeavors.

"On behalf of the Board and management team, I would like to thank Duane for his extensive knowledge and leadership, particularly in his role as Chair of the Audit Committee," said Norton Singhavon, Founder and CEO of Avant. "His financial acumen and strategic guidance have been tremendous assets to the Company over the last four and a half years."

About Avant Brands Inc.

Avant Brands Inc. (TSX: AVNT) (OTCQX: AVTBF) (FRA: 1BU0) is a leading innovator in premium cannabis products, driven by a commitment to exceptional quality and craftsmanship. As one of Canada's largest indoor producers, the company operates multiple production facilities across the country, cultivating unique and high-quality cannabis strains.

Avant offers a diverse product portfolio catering to recreational, medical, and export markets. Its renowned consumer brands, including blk mkt™, Tenzo™, Cognōscente™, flowr™, and Treehugger™, are available in key recreational markets across Canada. The company's international footprint spans Australia, Israel, and Germany, with its flagship brand blk mkt™ leading the way. Avant also serves qualified medical patients nationwide through its Avant medical cannabis brand, accessible via the Avant Medical portal and trusted partner network.

Avant is a publicly traded company, listed on the Toronto Stock Exchange (TSX) and accessible to international investors through the OTCQX Best Market (OTCQX) and Frankfurt Stock Exchange (FRA). Headquartered in Kelowna, British Columbia, the company operates in strategic locations throughout Canada.

Learn More:

For more information about Avant, including investor presentations and details about its consumer brands, please visit the company website: www.avantbrands.ca

Investor Relations:

For inquiries, please contact:

Avant Brands Investor Relations
1-800-351-6358
[email protected]

Neither TSX nor its Regulation Services Provider (as that term is defined in policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:

This news release includes certain "forward-looking information" as defined under applicable Canadian securities legislation, encompassing statements regarding Avant Brands Inc.'s ("Avant" or the "Company") plans, intentions, beliefs, and current expectations concerning future business activities and operating performance.

Forward-looking information is often, but not always, identified by the use of words such as "expects," "intends," "anticipates," "believes," "estimates," "plans," "may," "could," "should," "will," or variations of such words and phrases. In particular, this news release includes forward-looking information related to, but not limited to: the Company's expectations for future revenue, sales growth, and margin expansion; the anticipated impact of facility optimizations and lighting upgrades on cultivation yields and production costs in the second half of Fiscal 2026; the Company's ability to identify, evaluate, and successfully execute accretive strategic acquisitions of cultivation facilities in Canada or Europe; the Company's ability to secure non-dilutive financing to complete the Phase 1 GreenTec Bio-Pharmaceuticals facility construction; expectations regarding the continued reduction of corporate debt, including the targeted full retirement of the Credit Facility and the completion of scheduled quarterly principal repayments on the unsecured convertible debenture; the implementation of an enhanced investor relations strategy to improve shareholder communication; the ability to secure more favorable terms in international sales agreements and expand into new export markets, including through brand licensing and new cultivar introductions; and the Company's strategic focus on high-velocity recreational products to drive sustainable profitability.

Forward-looking information also includes statements concerning the Company's ongoing focus on operational efficiencies, profitability, and the anticipated availability of financial statements and management's discussion and analysis ("MD&A") on the Company's SEDAR+ profile and website. Investors should be aware that forward-looking information involves inherent risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied by such information. Management's current expectations may not accurately predict future events or outcomes. Therefore, investors are cautioned not to place undue reliance on forward-looking information.

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; 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 March 2, 2026 filed with Canadian securities regulators and available on the Company's profile on SEDAR+ at www.sedarplus.ca

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. 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 speaks 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.

SPECIAL NOTE REGARDING FINANCIAL INFORMATION

This document should be read in conjunction with the Company's audited consolidated financial statements (the "financial statements") and the Company's MD&A for the three months and twelve months ended November 30, 2025, and audited consolidated financial statements for the year ended November 30, 2024. All dollar amounts are referenced in millions of Canadian dollars, except where noted otherwise. The Company's financial statements and MD&A for the three months and twelve months ended November 30, 2025, have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

Additional information relating to the Company, including its Annual Information Form for the year ended November 30, 2025, is available on SEDAR+ at www.sedarplus.ca. Information on the Company's website does not form part of and is not incorporated by reference in the Company's MD&A.

SPECIAL NOTE REGARDING NON-GAAP AND OTHER FINANCIAL MEASURES

This document includes references to non-GAAP measures, which include non-GAAP and other financial measures as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure. These financial measures are used by the Company to evaluate its financial performance, financial position or cash flow and include non-GAAP financial measures, non-‍GAAP ratios, total of segments measures, capital management measures, and supplementary financial measures. These financial measures are not defined by IFRS and therefore are referred to as non-GAAP and other financial measures. The non-GAAP and other financial measures used by the Company may not be comparable to similar measures presented by other companies and should not be considered an alternative to or more meaningful than the most directly comparable financial measure presented in the Company's financial statements, as applicable, as an indication of the Company's performance. Descriptions of the Company's non-GAAP and other financial measures included in this document, and reconciliations to the most directly comparable GAAP measure, as applicable, are provided in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of the Company's MD&A for the three months and twelve months ended November 30, 2025, dated March 2, 2026.

SOURCE: Avant Brands Inc.

View the original press release on ACCESS Newswire

M.Anderson--SMC