KELOWNA, BC / ACCESS Newswire / October 15, 2026 / Avant Brands Inc. (TSX:AVNT)(OTCQX:AVTBF)(FRA:1BU0) ("Avant" or the "Company"), a leading producer of innovative and award-winning cannabis products, today released its financial results for the third quarter ended August 31, 2026 ("Q3 2026").

With an expanding global footprint, Avant has established itself as a leading Canadian producer of ultra-premium cannabis, delivering brands at a commercial volume that continues to be outpaced by market demand.

Norton Singhavon, Founder & CEO of Avant Brands commented:

"Q3 was an inflection point for Avant. Returning to positive net income of $0.2 million and increasing Adjusted EBITDA to $1.3 million reflects our deliberate pivot away from low margin bulk wholesale toward high margin branded recreation. Recreational sales grew 51% to $4.1 million, representing more than half of our net revenue and driven by ongoing market share gains in BLK MKT™ and Tenzo™. Operationally, the LED retrofit at Flowr delivered an immediate 57.5% sequential increase in kilograms harvested. Over the past two years we reduced interest bearing debt from $8.1 million to $0.9 million, giving us the financial footing to reinvest in our facilities and build out our international export channels."

Q3 2026 Financial Highlights (vs. Q3 2025):

Revenue:

• Gross revenue: $9.0 million (-16%)
• Net revenue: $7.3 million (-22%)
• Recreational revenue: $4.1 million (+51%).
• Export wholesale revenue: $2.1 million (-50%)
• Domestic wholesale revenue: $1.1 million (-52%)

Gross profit: Gross profit increased to $2.5 million, compared to a gross profit of $1.7 million in Q3 2025.

Net Income: Net income was $0.2 million, compared to a net loss of $1.9 million in Q3 2025.

Adjusted EBITDA¹: Adjusted EBITDA¹ improved to $1.3 million, compared to $0.2 million in Q3 2025. The increase was driven by a higher-margin sales mix, stronger gross margins, and lower operating expenses. The Flowr lighting retrofit contributed an early increase in kilograms harvested at that facility.

1. Adjusted EBITDA is a non-GAAP performance measure. The information is incorporated by reference from the Q3 2026 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com

Balance Sheet & Liquidity Highlights

• Continued Debt Reduction: The Company remains committed to prudent capital allocation and balance sheet optimization. In less than 24 months, Avant has reduced its interest-bearing debt from $8.1 million to $0.9 million, while continuing to invest in operational improvements, product innovation, and international growth opportunities.

Q3 2026 Operational Milestones

• EU-GMP audit completed at Flowr: On August 20, 2026, the Company announced that a qualified German auditing body had completed the on-site EU-GMP audit at Flowr, covering cultivation, harvesting, processing, and quality management. Certification, if granted, would allow the Company to serve Germany and its other international medical markets with greater control of processing and batch release, rather than relying on a European partner.

Canadian Recreational Highlights:

Recreational revenue increased by 51%, reflecting the Company's execution of a disciplined growth strategy centered on differentiated product innovation, a higher-performing SKU portfolio, and more effective commercialization across provincial markets. Targeted improvements in production efficiency and fulfillment have strengthened product availability and supported retail sell-through, while continued momentum in Ontario & British Columbia demonstrate the effectiveness of this integrated approach. By identifying market whitespace and scaling products with proven consumer demand, the Company continues to build a more productive and scalable portfolio designed to support financially sustainable long-term growth. This strategy delivered the following market milestones, based on Q3 Ontario Cannabis Store (OCS) sales data:

• Leading Milled Offerings: Tenzo™ secured the # 1 and # 2 best-selling SKUs in Ontario's multi-pack milled flower segment, while ranking 4th overall in the broader milled flower category among more than 55 competing brands.

Cannabis Production and Sales:

• Cannabis Production: 3,224 KG (-0.2%). Excluding Flowr, the Company's cultivation production continues to operate at an optimized maximum capacity. At Flowr, kilograms harvested increased from 807 kg in Q2 2026 to 1,272 kg in Q3 2026, or 57.5%, an early result following commissioning of the LED retrofit, with potential for further optimization in subsequent crop cycles.
• Cannabis Sales: 2,222 KG sold (-34%) with 361 KG comprised of trim.

Q3 2026 YTD Financial Highlights (vs. Q3 2025 YTD):

Revenue:

• Gross revenue: $26.6 million (-12%)
• Net revenue: $22.2 million (-16%)
• Recreational revenue: $11.7 million (+39%)
• Export wholesale revenue: $6.6 million (-49%)
• Domestic wholesale revenue: $3.8 million (-16%)

Gross profit: Gross profit was $2.8 million, compared to $3.1 million in the comparative prior-year period.

The decrease in gross profit was driven by lower net revenue and a decrease in the unrealized gain on changes in fair value of biological assets as compared to the same period in the prior year.

Adjusted EBITDA¹: Adjusted EBITDA¹ was negative $0.6 million, compared to positive $3.2 million in the comparative period of the prior year. The decrease in adjusted EBITDA was primarily driven by lower net revenue and gross profit.

1. Adjusted EBITDA is a non-GAAP performance measure. The information is incorporated by reference from the Q3 2026 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com

Cannabis Production and Sales:

• Cannabis Production: 9,080 KG (-8%), reflecting the Company's ongoing cultivation optimization initiatives across its production facilities.
• Cannabis Sales: 9,155 KG sold (-4%), primarily reflecting lower export wholesale transactions compared to the prior year period.

Outlook

Management expects further operating benefits from the Flowr lighting retrofit, including lower energy and HVAC costs and improved cultivation performance, as post-retrofit crop cycles move through production and sale. The Q3 increase in kilograms harvested at Flowr is an early indication, not the full run-rate. The Company will also complete measurement and verification tied to the remaining incentive funding.

The Company will continue the EU-GMP process at Flowr, including remediation of audit observations. Certification remains subject to review by the auditing body and has not been granted. Management views certification, if obtained, as a requirement for future export sales with greater control over processing and batch release. It was not a contributor to Q3 revenue and certification is not assured.

Avant will continue to prioritize branded recreational execution in Canada, where BLK MKT™ and Tenzo™ hold leading positions in Ontario. Additionally, the Company will continue to focus on disciplined capital allocation as evidenced by the interest-bearing debt having been reduced from $8.1 million to $0.9 million in less than 24 months.

Recent recognition

Subsequent to quarter-end, Avant Brands was named to The Globe and Mail Report on Business ranking of Canada's Top Growing Companies for the fourth consecutive year, placing 285th in 2026. The ranking measures three-year revenue growth and is not a measure of Q3 2026 performance.

About Avant Brands Inc.

Avant Brands Inc. (TSX:AVNT)(OTCQX:AVTBF)(FRA:1BU0) is a leading innovator in premium cannabis products, driven by a commitment to exceptional quality and craftsmanship. As one of Canada's largest indoor producers, the company operates multiple production facilities across the country, cultivating unique and high-quality cannabis strains.

Avant offers a diverse product portfolio catering to recreational, medical, and export markets. Its renowned consumer brands, including BLK MKT™, Tenzo™, Cognōscente™, flowr™, and Treehugger™, are available in key recreational markets across Canada. The company's international footprint spans Australia, Israel, Germany, and the United Kingdom, with its flagship brand BLK MKT™ leading the way. Avant also serves qualified medical patients nationwide through its Avant medical cannabis brand, accessible via the Avant Medical portal and trusted partner network.

Avant is a publicly traded company, listed on the Toronto Stock Exchange (TSX) and accessible to international investors through the OTCQX Best Market (OTCQX) and Frankfurt Stock Exchange (FRA). Headquartered in Kelowna, British Columbia, the company operates in strategic locations throughout Canada.

Learn More:

For more information about Avant, including investor presentations and details about its consumer brands, please visit the company website: www.avantbrands.ca

Investor Relations:

For inquiries, please contact:

Avant Brands Investor Relations
1-800-351-6358
ir@avantbrands.ca

Neither TSX nor its Regulation Services Provider (as that term is defined in policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:

This news release includes certain "forward-looking information" as defined under applicable Canadian securities legislation, encompassing statements regarding Avant Brands Inc.'s ("Avant" or the "Company") plans, intentions, beliefs, and current expectations concerning future business activities and operating performance.

Forward looking information is often, but not always, identified by the use of words such as "expects," "intends," "anticipates," "believes," "estimates," "plans," "may," "could," "should," "will," or variations of such words and phrases. In particular, this news release includes forward looking information related to, but not limited to: the Company expectations regarding future revenue, sustained gross margins, Adjusted EBITDA performance, and sustainable profitability; the anticipated operating and cultivation benefits resulting from the completed LED lighting retrofit at the Flowr facility, including increased harvest yields, reduced electrical demand, lower HVAC and utility operating costs, and the receipt of up to $2.0 million in non-dilutive incentive funding subject to final measurement and verification; the timing, progress, and potential outcome of the EU GMP certification process at the Flowr facility, including the remediation of audit observations, the potential receipt of certification from European regulatory authorities, and the anticipated impact of certification on expanding international medical exports and direct batch release capabilities; the Company strategy to expand branded recreational market share through top performing SKUs under BLK MKT™ and Tenzo™, portfolio optimization, and retail channel execution across key provincial markets; and expectations regarding corporate capital discipline, ongoing balance sheet optimization, and the management of outstanding debt obligations.

Forward-looking information also includes statements concerning the Company's ongoing focus on operational efficiencies, profitability, and the anticipated availability of financial statements and management's discussion and analysis ("MD&A") on the Company's SEDAR+ profile and website. Investors should be aware that forward-looking information involves inherent risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied by such information. Management's current expectations may not accurately predict future events or outcomes. Therefore, investors are cautioned not to place undue reliance on forward-looking information.

Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates, or projections concerning future results or events based on the opinions, assumptions, and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance, or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: regulatory and licensing risks; changes in consumer demand and preferences; changes in general economic, business, and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; compliance with extensive government regulation; public opinion and perception of the cannabis industry; and the risk factors set out in the Company's annual information form dated March 2, 2026 filed with Canadian securities regulators and available on the Company's profile on SEDAR+ at www.sedarplus.ca.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected. Although the Company has attempted to identify important risks, uncertainties, and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated, or intended. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise, except as required by law.

SPECIAL NOTE REGARDING FINANCIAL INFORMATION

This document should be read in conjunction with the Company's unaudited consolidated financial statements (the "financial statements") and the Company's MD&A for the three months and nine months ended August 31, 2026, and audited consolidated financial statements for the year ended November 30, 2025. All dollar amounts are referenced in millions of Canadian dollars, except where noted otherwise. The Company's financial statements and MD&A for the three months and nine months ended August 31, 2026, have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

Additional information relating to the Company, including its Annual Information Form for the year ended November 30, 2025, is available on SEDAR+ at www.sedarplus.ca. Information on the Company's website does not form part of and is not incorporated by reference in the Company's MD&A.

SPECIAL NOTE REGARDING NON-GAAP AND OTHER FINANCIAL MEASURES

This document includes references to non-GAAP measures, which include non-GAAP and other financial measures as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure. These financial measures are used by the Company to evaluate its financial performance, financial position or cash flow and include non-GAAP financial measures, non-‍GAAP ratios, total of segments measures, capital management measures, and supplementary financial measures. These financial measures are not defined by IFRS and therefore are referred to as non-GAAP and other financial measures. The non-GAAP and other financial measures used by the Company may not be comparable to similar measures presented by other companies and should not be considered an alternative to or more meaningful than the most directly comparable financial measure presented in the Company's financial statements, as applicable, as an indication of the Company's performance. Descriptions of the Company's non-GAAP and other financial measures included in this document, and reconciliations to the most directly comparable GAAP measure, as applicable, are provided in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of the Company's MD&A for the three months and nine months ended August 31, 2026, dated October 7, 2026.

SOURCE: Avant Brands, Inc.