Avant Brands restructures loan agreements to extend term, decrease payments

Avant Brands has entered into amendments with respect to certain outstanding debts of the Company. Avant has entered into a promissory note extension agreement, with MENA Investment Network pursuant to which certain amendments were made to the terms of the original promissory note dated July 31, 2023. The Extension Agreement benefits the Company as the Note’s $720,000 balance, originally due on the Note’s due date, will now be paid through monthly installments until the amended maturity date of July 12, 2024. The Note bears interest at a rate of 12% percent per annum. Subject to final approval of the TSX, as consideration for entering into the Extension Agreement, Avant: issued 672,897 common shares of the Company to MENA; and subject to certain conditions will additionally issue such number of common shares of the Company on July 12, 2024, equal to $50,000 divided by the five-day volume weighted average price of the common shares of the Company on the Toronto Stock Exchang. Avant has entered into a partial equity conversion agreement with F-20 Developments Corp. reducing Avant’s quarterly payments to F-20 by more than $1,250,0000. Additionally, Avant and F-20 have executed an amended and restated convertible debenture, replacing in its entirety the debenture dated February 1, 2023. Subject to final approval of the TSX, and in accordance with the Equity Conversion Agreement, Avant has made a voluntary prepayment to F-20 against the principal balance of $4,750,000 in the amount of $1,400,000 through the issuance of 16,355,140 common shares of the Company. Additionally, Avant issued 1,375,000 common share purchase warrants to acquire common shares of the Company at an exercise price of $0.25 on or before February 23, 2026, subject to acceleration by the Company in the event that the 20-day VWAP of the Common Shares on the TSX exceeds $0.85. Terms of the A&R Debenture include: a maturity date extension to October 29, 2025; monthly amortized payments of approximately $150,000; and the amended note shall bear an interest rate of 15% per annum.