Mr. Norton Singhavon reports

AVANT BRANDS FULLY REPAYS $9.5M SECURED CONVERTIBLE DEBENTURE

Avant Brands Inc. has fully repaid its $9.5-million amended and restated (A&R) convertible debenture. The final payment was completed in November, 2025, retiring in full the obligation originally issued in connection with the 2023 acquisition of 3PL Ventures Inc.

The successful retirement of the A&R debenture eliminates Avant's largest monthly recurring debt obligation, strengthens the company's balance sheet and releases key operating assets from security. The repayment is part of a consistent focus on deleveraging: Avant has now repaid approximately $4-million in total debt during fiscal year 2025, reinforcing its continuing commitment to disciplined financial management. This follows Avant's eighth consecutive quarter of positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) and a 111-per-cent year-over-year increase in year-to-date cash flows from operating activities to $3.7-million (2).

Key highlights:

• Debt fully extinguished: full principal amount of the $9.5-million A&R debenture was retired in November, 2025;
• No conversion: repayment was completed without any conversion into common shares;
• Balance sheet strength: eliminates the company's largest recurring monthly debt obligation, enhancing liquidity for growth initiatives;
• Unencumbered operating assets: key real estate assets -- including Grey Bruce Farms and Tumbleweed Farms -- are now unencumbered;
• Execution and discipline: completed 32 consecutive payments since the note's initial issuance in February, 2023;
• Continued performance: reinforces Q3 (third quarter) 2025 results -- Avant's eighth consecutive quarter of positive adjusted EBITDA (1), driven by 13 per cent gross revenue growth to $10.8-million (2) and a 68-per-cent increase in gross profit to $1.7-million (2);
• Recognized growth: named one of The Globe and Mail's top growing companies for the third consecutive year, ranking 138th with 263-per-cent three-year revenue growth (3).

(1) Adjusted EBITDA is a non-GAAP (generally accepted accounting principles) performance measure. See the company's Q3 2025 MD&A (management's discussion and analysis), available on SEDAR+.

(2) As reported in the Q3 2025 financial results.

(3) As announced by The Globe on Sept. 29, 2025.

Norton Singhavon, founder and chief executive officer of Avant, stated:

"In 2023, we made bold investments at scale, acquiring 3PL and Flowr in parallel, to establish a platform capable of supporting sustained growth. We are pleased to have retired every dollar of this acquisition-related debt. This significant milestone, alongside the $4-million in total debt reduction achieved during fiscal year 2025, is a result of the company's execution, discipline and long-term commitment to shareholder value. Our balance sheet is significantly stronger, our core assets are unencumbered and we are well positioned for the next phase of profitable growth."

This repayment marks the fifth loan the company has fully retired in its history, bringing total debt repaid to more than $21-million. This record demonstrates Avant's ability to service debt, meet its obligations and consistently deliver on its commitments while continuing to strengthen its balance sheet.

The A&R debenture was originally issued in connection with the 2023 acquisition of 3PL Ventures, which, together with the parallel purchase of Flowr Okanagan, expanded Avant's indoor production footprint by approximately 60 per cent to more than 185,000 square feet. These acquisitions have positioned Avant as one of Canada's largest indoor cannabis producers and have supported material growth across both domestic and export channels.

Focus on next phase of growth

With the A&R debenture fully repaid, Avant plans to leverage its improved balance sheet to:

• Expand international distribution in high-growth export markets;
• Advance high-margin product categories domestically;
• Maintain strict cost discipline to maximize operating leverage and free cash flow.

The company remains committed to driving sustainable, cash-flow-positive growth and enhancing long-term shareholder returns.

About Avant Brands Inc.

Avant Brands 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, Cognoscente, 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 GreenTec medical cannabis brand, accessible via the GreenTec Medical portal and trusted partner network.

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

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