4M+ 3rd Q predictions Avant Brands Inc. AVNT AVTBF(FRA:1BU0) ("Avant" or the "Company"), an award-winning leading producer of handcrafted, high quality cannabis products, announced today that it intends to release its financial and operating results for the third quarter ended August 31, 2022, after the close of the Toronto Stock Exchange on Wednesday, October 12, 2022.
A conference call with management will be held on Thursday, October 13, 2022, at 1 PM PT (4 PM ET).
Avant has been consistently hitting every target moving the company in the direction to become cash flow positive. While other operators have struggled to perfect 1 SKU we have been able to roll out an assortment in the 25-30+ % THC range along with high terpene levels that are well reviewed. Avant has demonstrated they can produce high quality cannabis to scale.
Avant has recently released new extract formats to there catalog including PEANUTBUTTER MAC AND PINEAPPLE P COLD CURED LIVE ROSIN and TENZO DIAMONDS which will result in better profit margins. Pineapple P cold cured Live Rosin has been packaged with there new concentrate seal that has resulted in reviewers describing it as the best product on the market.
Avant has taking a majority stake in 3PL with 50% ownership we will see better break downs of segments. Safe to say we will see another 4.5-5M Q which extrapolated to full 2022 we could see 18-20M. (2021- 11M)
While other operators are struggling to move product we are in the position that we need too choose between putting our supply to recreational sales and have to decline international sales that need product build ups of 250-500KG.
Avant has re-started constructions on GBP, the facility was originally intended to be 80,000 square feet with the first phase of development to be 20,000 square feet (“GBP Phase One”). The facility is located in Kelowna, BC and was intended to serve as Avant’s flagship cultivation facility with an anticipated opening of late-2019. After completing an extensive financial review, the Company suspended construction, in order to redirect capital to other priorities. The estimated cost to complete construction is approximately $4 million. As a result of the increased levels of demand from the export market and provincial boards, the Company has resumed the build-out of GBP Phase One in preparation for future demand.
My predictions for 3rd Q results will be another 4M+ with 4th Q being our best yet with the biggest product roll out shipment to the OCS that happened in beginning of September just after 3rd q ended.
18M-20M+ 2022 ! EBIDTA positive and cash flow positive 2023, by time the warrants end march 24' $4 target SP.
Management continually reviews and analyzes various financial metrics, including financial ratios such as Current Ratio, Quick Ratio, Inventory Turnover Ratio, and consolidated models such as the Altman Z-Score. As of May 31, 2022, the Company maintains a Current Ratio of 7.1, a Quick Ratio of 4.2, and an Inventory Turnover Ratio of 1.8.