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Avant Brands Inc (TSE:AVNT)
:AVNT
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Avant Brands (AVNT) AI Stock Analysis

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TSE:AVNT

Avant Brands

(OTC:AVNT)

Rating:50Neutral
Price Target:
C$0.50
▼(-28.57%Downside)
Avant Brands' overall stock score reflects significant financial challenges, including negative profit margins and operational inefficiencies. However, recent corporate events, such as strategic international expansions and a focus on high-margin products, provide a positive outlook for future growth and market presence. Technical indicators suggest a bearish trend, while valuation remains concerning due to ongoing losses.

Avant Brands (AVNT) vs. iShares MSCI Canada ETF (EWC)

Avant Brands Business Overview & Revenue Model

Company DescriptionAvant Brands (AVNT) is a leading Canadian cannabis company that specializes in the cultivation, production, and distribution of premium cannabis products. The company operates in the legal cannabis sector, focusing on high-quality, hand-crafted cannabis strains and products. With a commitment to innovation and excellence, Avant Brands offers a diverse range of products, including dried flower, pre-rolls, and cannabis extracts, catering to both medical and recreational markets.
How the Company Makes MoneyAvant Brands makes money through the cultivation and sale of premium cannabis products. The company's revenue model is centered around its vertically integrated operations, which allow it to control the production process from seed to sale. Key revenue streams include wholesale distribution to licensed cannabis retailers and direct-to-consumer sales through its own branded products. Avant Brands also leverages strategic partnerships and licensing agreements to expand its market reach and enhance its product offerings. The company's focus on high-quality, craft cannabis products allows it to command premium pricing, contributing to its earnings.

Avant Brands Earnings Call Summary

Earnings Call Date:Jul 15, 2025
(Q1-2024)
|
% Change Since: -12.50%|
Next Earnings Date:Oct 08, 2025
Earnings Call Sentiment Positive
Avant Brands reported strong financial performance with record revenue and growth, positive cash flow, and international market expansion despite competitive challenges in the Canadian market.
Q1-2024 Updates
Positive Updates
Record Revenue and Growth
Avant Brands exceeded guidance with gross revenue of $8.9 million and net revenue increased by 15% year-over-year to a record $8.1 million. Gross margin reached a record $4.7 million with a healthy 58% margin overall.
Positive Cash Flow and EBITDA
Generated positive cash flow at a record $3.8 million and achieved a 47% adjusted EBITDA margin of net revenue. Avant has achieved positive EBITDA for 6 of the past 7 quarters.
International Market Expansion
Secured 5 new cannabis export agreements, bringing the total to 12 across Israel, Australia, and Germany. Export remains the fastest-growing channel.
Strong Export Pricing
Maintained strong export selling prices at $4.30 a gram, with the BLK MKT brand maintaining its premium price point.
Private Placement for Growth
Announced a private placement to secure up to $3.89 million in gross proceeds to support working capital needs.
Negative Updates
Competitive Canadian Market
The Canadian recreational market, especially in Ontario, remains highly competitive, impacting domestic performance.
Company Guidance
During the Avant Brands Q1 2024 earnings call, the company disclosed a robust financial performance, surpassing their guidance with gross revenue reaching $8.9 million, against an anticipated $8.2 to $8.8 million. Net revenue climbed by 15% year-over-year, hitting a record $8.1 million. The gross margin was at a healthy 58%, with Canadian recreational sales at 63% and exports achieving an impressive 74% margin. The firm generated a record positive cash flow of $3.8 million and reported an adjusted EBITDA of the same amount, reflecting a 47% margin. Avant also announced a private placement to secure up to $3.89 million to bolster working capital, with a strategic investor contributing a lead order of $600,000. Additionally, the company’s export channel expanded significantly with five new agreements, solidifying its presence in international markets and offsetting domestic challenges.

Avant Brands Financial Statement Overview

Summary
Despite revenue growth, Avant Brands struggles with negative profit margins and operational inefficiencies. The balance sheet shows stability with equity covering liabilities, but negative equity trends and cash flow inconsistencies are concerning.
Income Statement
35
Negative
Avant Brands has experienced revenue growth from 2020 to the TTM period, but the company struggles with negative profit margins. The gross profit margin is negative, reflecting cost challenges. Net profit margin is also significantly negative due to high operating expenses relative to revenue. The EBITDA and EBIT margins are deeply negative as well, indicating operational inefficiencies.
Balance Sheet
50
Neutral
The balance sheet shows a moderate debt-to-equity ratio over time, with equity covering liabilities, indicating some stability. However, the negative trajectory in stockholders' equity and total assets highlights potential financial strain. Return on equity is negative due to ongoing net losses, raising concerns about future profitability.
Cash Flow
40
Negative
Avant Brands shows a fluctuating cash flow situation. The operating cash flow to net income ratio is positive, suggesting some conversion efficiency, but free cash flow remains limited and inconsistent. Free cash flow growth has been erratic, highlighting challenges in generating consistent cash from operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue35.80M26.34M20.15M9.50M7.91M
Gross Profit-1.68M12.43M3.91M1.90M6.15M
EBITDA-19.45M4.84M-1.89M-9.65M-5.07M
Net Income-22.55M-5.07M-7.54M-11.23M-10.17M
Balance Sheet
Total Assets59.47M82.55M67.03M50.57M40.80M
Cash, Cash Equivalents and Short-Term Investments1.74M794.00K6.78M14.49M625.00K
Total Debt17.01M18.70M3.01M623.00K7.50M
Total Liabilities26.62M33.22M18.79M2.70M12.38M
Stockholders Equity32.85M49.33M43.92M47.87M28.42M
Cash Flow
Free Cash Flow401.00K1.85M-4.90M-6.22M-1.12M
Operating Cash Flow507.00K5.41M-3.46M-5.62M-357.00K
Investing Cash Flow-78.00K-7.03M-3.10M-1.65M-1.38M
Financing Cash Flow539.00K-4.38M-993.00K20.96M393.00K

Avant Brands Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.70
Price Trends
50DMA
0.77
Negative
100DMA
0.89
Negative
200DMA
0.88
Negative
Market Momentum
MACD
-0.03
Positive
RSI
37.35
Neutral
STOCH
22.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AVNT, the sentiment is Negative. The current price of 0.7 is below the 20-day moving average (MA) of 0.75, below the 50-day MA of 0.77, and below the 200-day MA of 0.88, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 37.35 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AVNT.

Avant Brands Peers Comparison

Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
$8.64M-63.75%9.34%69.69%
56
Neutral
C$6.88M181.82-3.45%4.04%80.24%
50
Neutral
C$7.49M-55.81%31.94%-45.55%
50
Neutral
$9.92M6.82-22.29%28.30%86.67%
46
Neutral
C$205.70M-3.34-23.14%2.45%20.79%-0.36%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AVNT
Avant Brands
0.67
-0.83
-55.33%
TSE:DHB
Delivra Health Brands
0.22
-0.03
-12.00%
IMCC
IM Cannabis Corp
2.80
0.20
7.69%
TSE:CLC
Christina Lake Cannabis
0.04
0.00
0.00%

Avant Brands Corporate Events

Business Operations and StrategyFinancial Disclosures
Avant Brands Reports Strong Q2 2025 Financial Results with Continued Growth in International Markets
Positive
Jul 15, 2025

Avant Brands Inc. reported its financial results for Q2 2025, highlighting a 3% increase in both gross and net revenue compared to Q2 2024. The company achieved its sixth consecutive quarter of positive Adjusted EBITDA, driven by a significant 11% rise in export wholesale revenue and a 31% increase in domestic wholesale revenue. Avant’s strategic focus on high-margin products has led to a decline in recreational revenue, but this realignment is expected to enhance long-term profitability. The company’s strong international presence and operational discipline continue to solidify its position as a leading Canadian cannabis exporter.

Product-Related AnnouncementsBusiness Operations and Strategy
Avant Brands Expands Global Reach with New Supply Agreements and Product Launches
Positive
Jun 23, 2025

Avant Brands Inc. has announced strategic international supply agreements to export up to 2,000 kilograms per year of GACP-certified, non-irradiated dried flower to the European medical cannabis market, enhancing its global market presence. Additionally, Avant is expanding its product offerings in Canada with over 30 new SKU listings in Ontario and B.C., introducing innovative packaging and products, and relaunching its medical division to better serve Canadian patients and veterans, marking a pivotal moment in its growth trajectory.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Avant Brands Inc. Announces Key Outcomes from 2025 Annual General Meeting
Neutral
May 31, 2025

Avant Brands Inc. held its 2025 Annual General Meeting, where 16.19% of its common shares were represented. Key outcomes included the election of six directors, re-appointment of Ernst & Young LLP as auditors, and approval of amendments to the company’s deferred share unit and long-term incentive plans. Additionally, the repricing of certain warrants and convertible debentures was approved, reflecting strategic adjustments to enhance shareholder value and operational flexibility.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2025