On February 26, 2024, Avant Brands Inc. entered into a promissory note extension agreement with MENA Investment Network Inc. and a partial equity conversion agreement with F-20 Developments Corp.
The extension agreement with MENA provides for monthly installments until the amended maturity date of July 12, 2024. In addition, as consideration for entering into the extension agreement, Avant issued 672,897 common shares and, subject to certain conditions, will issue such number of common shares on July 12, 2024 as is equal to $50,000 divided by the five-day volume weighted average price of the common shares on the TSX.
The partial equity conversion agreement reduces Avant’s quarterly payments to F-20 by more than $1.25 million and extends the maturity date to October 29, 2025 with an amended interest rate of 15% per annum and monthly amortized payments of $150,000. Avant made a voluntary prepayment of $1.4 million through the issuance of 16,355,140 common shares. Avant also issued 1,375,000 common share purchase warrants with an exercise price of $0.25 exercisable on or before February 23, 2026, subject to acceleration in certain circumstances.
Cassels acted for Avant.