Cannabis company Avant Brands Inc. AVNTAVTBF(FRA:1BU0) announced its financial results for the fourth quarter and fiscal 2021 ended Nov.30, 2021.
"2021 was a transformative year for Avant as we graduated on to the TSX, entered new international markets, licensed the 3PL JV, our newest and largest facility, launched innovative new products and emerged with one of the strongest balance sheets in the industry," stated Norton Singhavon, founder and CEO of Avant. "We continue to grow our market demand while remaining innovative and providing consumers in Canada and internationally with premium quality cannabis. We entered 2022 with considerable momentum, resulting in anticipated record revenues for Avant in Q1 2022 and we intend to continue to execute on our growth strategy."
Key Financial Highlights For Fiscal 2021
Achieved record gross revenues of CA$11 million ($8.61 million), compared to CA$8.8 million, an increase of 25%;
- Recreational cannabis sales of CA$7.8 million, compared to CA$6.0 million, an increase of $1.8 million or 29%, demonstrating the significant demand for Avant's premium cannabis brands;
- Cash outflow from operating activities before working capital of CA$1.0 million, compared to cash inflow of $1.4 million, the decrease was a result of the company's investment in new product development, packaging, and other initiatives that the company expects will generate positive operating cash flows;
- Gross margin before fair value adjustments was CA$3.7 million, or 39%, compared to CA$4.0 million;
- Net loss from operations was CA$5.4 million, compared to net income from operations of CA$300,000;
- Adjusted EBITDA was a loss of CA$1.6 million, compared to adjusted EBITDA loss of CA$100,000;
- Graduated from the TSX Venture to the Toronto Stock Exchange , and from the OTCQB Market to OTCQX Best Market ;
- Strengthened the company's board of directors with the appointment of Jurgen Schreiber as chairman of the board, Duane Lo as chair of the audit committee and Ruairi Twomey as an additional independent director;
- 3PL, a purpose-built 60,000 sq. ft. facility received its Standard Cultivation, Standard Processing and Medical Sales Licences , in accordance with Health Canada's Cannabis Act and Regulations;
- The company raised CA$23 million through a bought deal at a unit price of CA$0.80 per unit;
- Eliminated all of the company's debt , which was approximately CA$8 million;
- Divested of the last non-core asset, Zenalytic Laboratories Ltd., for a combination of cash and stock, with an aggregate value of $300,000 Filed base shelf prospectus for an aggregate offering up to $50 million to provide the
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