Avant Brands anticipates ‘significant growth’ from global sales

In the fourth quarter of Fiscal 2023, Avant encountered a temporary decline in sales due to the accumulation of products for large export shipments, all of which were subsequently delivered in the first quarter of 2024. Additionally, declining purchase orders from The Ontario Cannabis Store contributed to this decline. Various factors contributed to the decrease in OCS orders, including inflationary pressures, evolving trends in dried flower consumption, and a heightened demand for larger-format value products. Additionally, the downturn in Avant’s market performance with the OCS was compounded by its limited product visibility and support within major Ontario retail chains. Avant’s offerings frequently suffer from restricted availability and minimal promotional activities within these chains. This situation arises from Avant’s current decision to abstain from engaging in data programs, commonly known as “pay-to-play,” which are typically mandatory for most major retail chains to promote and support products. This strategic choice, made by management of the Company, is aimed at preserving the Company’s adult-use gross margins while also ensuring full compliance within The Alcohol and Gaming Commission of Ontario’s inducement policy. Despite the short-term challenges, Avant remains committed to aggressively competing in the Canadian adult-use market while expanding its global distribution channels. The Company anticipates significant growth from global sales, with expected increases in gross revenues ranging between $8.2 million and $8.7 million5 for the first quarter of 2024. This growth trajectory aims to further solidify the position of BLK MKT as a globally recognized ultra-premium cannabis brand.