Avant Brands Inc. (OTCQX:AVTBF) (TSX:AVNT) (FRA:1BU0) released its financial results for the quarter ended May 31, 2022, revealing record recreational cannabis sales of $3.1 million, compared to $2.5 in previous quarter, an increase of $600,000 or 23%.
Financial & Operational Highlights: Q2 2022 vs. Q1 2022
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Gross revenues of $4.5 million, from the sale of 961 kg of cannabis, representing a revenue decrease of 3% and a volume increase of 9%
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Total production increased by 66% to 1,595 kg
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Successfully continued international expansion with dried flower exports totaling over 176 kg
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Net loss from operations was $4.5 million, compared to $1 million, the variance being driven primarily by non-cash items, including share-based compensation from the RSU grant in Q2 2022
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Adjusted EBITDA loss of $600,000, compared to positive adjusted EBITDA of $100,000 in Q1 2022.
“Q2 2022 continued Avant’s strong sales momentum established in Q1 2022, which we believe was a result of outstanding product quality, increased production and ongoing growth in both domestic and international markets,” stated Norton Singhavon, founder and CEO of Avant. “Our record first half results provide a strong foundation for future growth as we ramp-up production at our 3PL facility during the remainder of fiscal 2022.”
As of May 31, 2022, the company had $8.9 million in cash, $21.0 million in working capital and no long-term debt obligations.
Other Highlights & Subsequent Events
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In May 2022, 3PL Ventures Inc. received a license amendment from Health Canada to facilitate sales to provincial liquor boards.
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In May 2022, Avant Craft Cannabis received a license amendment from Health Canada to facilitate sales of edibles and concentrates to provincial liquor boards.
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In May 2022, 3PL received ICANN-GAP certification from Institute for Quality & Control, to facilitate export sales to Israel.
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In June 2022, 3PL shareholders executed a revised 3PL shareholders’ agreement, increasing Avant’s equity stake in 3PL from 49% to 50%, effective June 1, 2022.
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In June 2022, the company executed its first international trademark licensing agreement, with the aim to leverage the success of its brand portfolio, generating incremental revenue.
Photo by Richard T on Unsplash
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