Avant Brands Completes Acquisition Of Flowr Okanagan

Avant Brands Inc. AVTBF AVNT(FRA:1BU0) announced that Avant Brands K1 Inc., an entity of which Avant owns 50% of the issued and outstanding shares, closed its previously announced acquisition of all of the issued and outstanding shares in the capital of The Flowr Group (Okanagan) Inc., a subsidiary of The Flowr Corporation FLWPF on February 1, 2023 pursuant to an amended and restated purchase agreement among the purchaser, Flowr Okanagan and Flowr Canada Holdings ULC dated December 1, 2022, as amended.

The Flowr Okanagan facility will increase Avant's overall square footage of cultivation facilities to approximately 185,000 square feet and is expected to increase Avant's annual production capacity by approximately 60%.

The aggregate purchase price for the purchased shares was equal to $5.11 million, consisting of

• $3.85 million payable in cash and satisfied in the manner described below;

• 7.4 million common shares in the capital of Avant with a value of $1.26 million based on the deemed price of $0.1708955 per Avant share, plus the amount of the Closing DIP Loan and the value of the assumed liabilities, subject to certain adjustments.

The purchase price was satisfied through:

• A credit bid of all amounts owing to the purchaser under the DIP term sheet including any accrued and unpaid interest, expenses, fees and other amounts;

• Delivery of the Avant share consideration,

• An amount in cash equal to the purchase price less the credit bid and the Avant share consideration

• The assumption of certain liabilities, as set out in the purchase agreement.

On January 31, 2023, the DIP term sheet was amended, and the principal amount of the DIP loan was increased by $500,000 to an aggregate of $2.5 million.

Benzinga's Cannabis Capital Conference Is Back

The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference, returns to Miami for its 16th edition. This is the place where DEALS GET DONE, where money is raised, M&A starts, and companies meet investors and key partners. Join us at the Fontainebleau Miami Beach Hotel in Florida on April 11-12. Don’t miss out. Secure your tickets now. Prices will surge very soon.

Photo: Benzinga edit with photos by geralt and lindsayfox on Pixabay