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Avant Closes $3.5 Million Credit Facility


On July 17, 2023, Avant Brands Inc. completed a $3.5 million credit facility, which will be secured by the real-estate of Avant’s non-operational and non-licensed real property, the GreenTec BP in-construction facility, owned by GreenTec Holdings Ltd. and guaranteed by certain subsidiaries of Avant, including 3PL Ventures Inc., The Flowr Group (Okanagan) Inc. and GreenTec Holdings.

The credit facility will bear an annual interest rate of 15%, as will be adjusted for any upward change in the prime rate from 8.25% at the time of any advance, with a 3-year amortization period commencing as the credit facility is drawn upon in tranches of a minimum amount of $500,000, subject to the satisfaction of customary conditions precedent, with a condition that Avant completes a minimum draw-down of $500,000 by July 31, 2023.

In connection with closing of the credit facility, Avant also issued 1,750,000 common share purchase warrants to the lender to acquire common shares in the capital of Avant at an exercise price of $0.30 per share on or before July 17, 2026. The warrants will vest and become exercisable in accordance with the draw down schedule for the credit facility.

Cassels acted for Avant.

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