Avant Brands Inc. (AB) (TSX: AVNT) (OTCQX: AVTBF) (FRA: 1BU0) expects to increase its production capabilities by about 60 per cent after a recent winning bid and purchase agreement.
On Thursday, the Canadian cannabis company announced that Avant Brands K1, an entity of which AB owns 50 per cent, has entered into an agreement to acquire Flowr Group (Okanagan) — a subsidiary of The Flowr Corporation (TSX-V: FLWR) (OTC: FLWPF).
Acquiring the Flowr Group’s Okanagan facility will enable AB to extend the overall square footage of its cultivation facilities to about 185,000 square feet, thereby allowing Avant to increase its yearly production volume by 60 per cent. The deal will help establish AB as one of Canada’s largest producers of indoor grown pot.
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Avant Brands K1 purchased the Flowr Okanagan assets for approximately $4 million and $1 million worth of AB shares.
“Over the course of the last year, the Avant team has been seeking investment or acquisition opportunities which would enable us to utilize our strong balance sheet in a manner which maximizes shareholder value” said Norton Singhavon, Founder and CEO of Avant Brands.
“As a result, we are extremely pleased with the outcome of Flowr’s restructuring process, as we have always viewed their Kelowna facility as a top-tier and world class asset that would be an ideal fit for the Avant portfolio. We look forward to entering into our fiscal 2023 year with the addition of the Flowr facility and its dedicated team.”
rowan@mugglehead.com
